On Tuesday, Manta Air explained that a legal change forced them to revise their salary policy, with 50% of employee salaries now being paid in Maldivian Rufiyaa and the other 50% in US dollars. The airline used to pay all salaries entirely in US dollars. 

A press statement released by the airline on Tuesday indicated that the decision was made to comply with regulatory obligations dictated by the existing foreign exchange law, which requires the conversion of 20% of revenue into Maldivian Rufiyaa via a bank in the Maldives.

 Manta Air announced that the updated salary framework was put in place after conducting internal research and discussions with the Maldives Monetary Authority (MMA).

The airline mentioned operational limitations, such as the need to pay suppliers in dollars, as a major reason for the decision. 

These suppliers consist of vendors for spare components, software, aircraft, insurance, and fuel, along with airport service providers like Maldives Airports Company Limited (MACL) and Island Aviation Services. 

The airline emphasized that the salary adjustment was not optional but prompted by the challenge of upholding prior payment agreements in the new financial climate. Manta stated that it is in talks with the central bank and various government bodies and is willing to return to 100% dollar payments if conditions permit. 

The announcement arrives alongside reports of potential strike activity by Manta staff. In reply, the airline indicated that the alteration was necessary for legal compliance and was driven by the necessity to maintain operations.

 It also stressed that the well-being of employees continues to be a priority. 

In the meantime, Trans Maldivian Airways (TMA) recently opted to partially compensate employees in Maldivian Rufiyaa. The airline reversed its decision after facing threats of labor action.