Sri Lank employers allowed to include recent increments in minimum wage

COLOMBO (EconomyNext) –Sri Lankan employers who have already granted pay hikes to workers this year can deduct these increments when raising salaries under new minimum wage laws to be enforced, a statement from the prime minister’s office said.

The government has said it will legislate a minimum wage of 10,000 rupees with the private sector also being asked to raise salaries after a pay hike to state workers.

Workers will be given increments in two stages, according to a proposal by Labour Minister S B Nawinna with a 1,500 rupee increment from May 01, 2015 and a second increment of 1,000 rupees effective from January 01, 2016.

The statement from the office of Prime Minister Ranil Wickremesinghe said the pay hikes could be up to a maximum wage of 40,000 rupees a month and not exceed 41,500 rupees.

Employers who have already given increments to workers under collective agreements between January 1, 2015 and April 30, 2015 can deduct them when giving the proposed minimum wage increment regulated by the government, it said.

Other employee benefits like the Employees’ Provident Fund and Employees’ Trust Fund payments and those for overtime and night shifts and holiday allowances should in future be based on the newly enforced minimum wage, it said.

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