The Tourism Employees Association of Maldives (TEAM) has called on industry workers to reject decisions by some resorts to pay salaries and service charge allowances in Maldivian Rufiyaa.

In a statement on Thursday, TEAM condemned the new rules which force tourist establishments such as resorts to exchange a certain percentage of their dollar income at local banks.

Despite the new rules, TEAM insisted that resorts cannot decide to change the long-existing policy of paying salaries and service charge allowances in US dollars instead of Maldivian Rufiyaa.

"We urge workers in the tourism sector not to agree to be paid in Maldivian Rufiyaa and not to change their employment contracts or sign any such documents," the statement read.

TEAM stated that there are no laws or regulations requiring salaries to be paid in Maldivian Rufiyaa and that the change would bring huge financial losses to tourism industry workers.

"... the change will cause a financial loss of MVR 3000 or MVR 5000 to those working in the resorts," the statement highlighted.

Meanwhile, Pulse Hotels and Resorts recently began paying salaries in Maldivian Rufiyaa. The resorts operated by the company include Kandima Maldives, Nautilus Maldives and Nova Maldives.

The Foreign Currency Act which requires tourism businesses to exchange a percentage of their dollar income came into force on January 1.

Based on their operations and revenue, businesses are categorized into three distinct groups.

Under Category A, establishments such as resorts, integrated tourist resorts, private island resorts, resort hotels, or any such business that falls under this category must exchange either USD 500 per tourist per month or 20 percent of their gross monthly sales with banks.

Many resorts opposed the compulsory dollar exchange rules and said they did not meet the realities of the industry and the economic situation.