In accordance with a 2025 budget proposal, the Cabinet of Ministers approved the increase of the national minimum wage of employees in the private sector, parallel with the increase in the salaries of public sector employees.
Accordingly, the National Minimum Wage of Workers Amendment Act No. 11 of 2025, the Budgetary Relief Allowance of Workers (Amendment) Act No. 09 of 2025 and the Budgetary Relief Allowance of Workers (Amendment) Act No. 10 of 2025 have been passed by Parliament on 22.07.2025 with effect from 01.04.2025.
In accordance with the said provisions, the monthly minimum wage will increase from Rs. 17500/- to Rs. 27000/- from 2025.04.01 and the monthly minimum wage will increase to Rs. 30000/- from 2026.01.01.
The increase in the monthly minimum wage should be made applicable to all statutory payments such as Employees’ Provident Fund, Employees’ Trust Fund, overtime, probationary, maternity benefit payments and holiday payments. Also, every employer, including the immediate employer and the ultimate employer, is legally bound to take steps in accordance with the said provisions in respect of employees employed in any industry or service through an intermediary or contractor.
The Commissioner General of Labour has been empowered to implement the said provisions and accordingly steps have already been taken to inform the relevant parties about the said provisions through newspaper advertisements.
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The Minister of Labour has brought that information to the attention of the Cabinet and it was decided to give the Cabinet’s approval to take necessary steps to ensure that the said provisions are implemented properly.
