In accordance with Article 79 of the Constitution, Speaker Mahinda Yapa Abeywardena has formally approved the National Minimum Wage of Workers (Amendment) Bill, which sets a new minimum base pay of Rs. 21,000 for workers in the private sector. The approval came after the Bill’s September 3 Second Reading debate in Parliament, during which it was approved without a vote or any changes.
According to the new rule, private sector workers must get a minimum base wage of Rs. 17,500 per month plus an extra Rs. 3,500 in allowances, for a total monthly income of Rs. 21,000. In accordance with Budget Relief Acts No. 36 of 2005 and No. 4 of 2016, these allowances must be paid. The new minimum salary is applicable to payments from the Employees’ Provident Fund (EPF), Employees Trust Fund (ETF), and gratuities, as announced by the Ministry of Employment in a news release.
When the National Minimum pay Act was first implemented in 2016, the minimum pay for salaried workers was set at Rs. 10,000 per month, and for daily wage workers, it was Rs. 400. The minimum daily pay was raised to Rs. 500 and the minimum monthly wage to Rs. 12,500 in August 2021.
There haven’t been any pay rises in the private sector since 2021 due to the current economic climate and growing living expenses. The National Labour Consultative Council held multiple debates before the government made the decision to raise the minimum monthly wage by Rs. 5,000, from Rs. 12,500 to Rs. 17,500. Furthermore, the minimum daily wage was increased from Rs. 500 to Rs. 700, an increase of Rs. 200.
The modified law, which ensures that the minimum wage is applicable to all pertinent financial provisions, including EPF, ETF, and gratuity payments, is now in effect with the Speaker’s signature.