The Department of Labour has officially announced the implementation of the revised national minimum wage, marking a significant shift in the compensation landscape for Sri Lanka’s private sector. Effective January 1, 2026, the monthly minimum wage has been elevated to Rs. 30,000, up from the previous Rs. 27,000.
Labour Department Commissioner General Ms. H.M.D.N.K. Wataliyadda confirmed that this adjustment is enacted under the National Minimum Wage of Employees (Amendment) Act No. 11 of 2025.
Statutory Wage Adjustments
The revision establishes a new baseline for both monthly and daily-rated employees. Employers across all industries are now legally mandated to adhere to the following rates:
- National Monthly Minimum Wage: Increased from Rs. 27,000 to Rs. 30,000.
- National Daily Minimum Wage: Increased from Rs. 1,080 to Rs. 1,200.
Expanded Employer Liability and Compliance
A critical component of the Amendment Act is the clarification of employer responsibility, particularly concerning outsourced or contract labor.
According to the Commissioner General, the law now explicitly holds both the immediate employer and the ultimate employer liable for ensuring that workers receive the statutory minimum. This provision aims to protect employees engaged through intermediaries or third-party contractors, ensuring no worker falls through the cracks of complex hiring structures.
Furthermore, the Commissioner General issued a strict directive regarding the composition of the wage:
“Apart from budgetary relief allowances specified under Section 4 of the Act, no other allowances received by employees as of 31 March 2025 may be used to offset or fulfill the minimum wage requirements.”
Integration with Statutory Benefits
The wage hike is expected to have a cascading effect on the total cost of employment, as the “minimum wage” serves as the foundational figure for several statutory calculations. Under the new revision, employers must ensure that payments for the following are adjusted accordingly:
- Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF)
- Overtime Pay and Holiday Pay
- Gratuity and Maternity Benefits
Enforcement and Dispute Resolution
To ensure the benefits of the Amendment Act reach the intended workforce, the Department of Labour has streamlined its grievance process.
Employees who find their wages are not in compliance with the new statutory floor are encouraged to seek redress through the Department of Labour’s Complaints Management System (CMS) at cms.labourdept.gov.lk. Alternatively, formal written complaints can be lodged at the nearest regional Labour Office.
The Department of Labour emphasized that strict adherence to these regulations is non-negotiable, as the government seeks to balance industrial productivity with the economic well-being of the private sector workforce.
(Source:lankanews.lk)
Leave your comments
Login to post a comment
Post comment as a guest