Cabinet approves to gazette draft bills to raise national minimum wage for private sector employees

Saturday, 10 May 2025 00:45 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

The Cabinet of Ministers at their meeting on Wednesday approved the publication of revised draft bills in the Government Gazette, after which they will be submitted to Parliament for approval, to increase the national minimum monthly and daily wages of private sector employees in line with recent public sector salary adjustments.

The approved amendments cover the Employees’ Budget Concessionary Allowance Nos. 36 of 2005 and No. 4 of 2016, as well as the Employees’ National Minimum Wage Act No. 3 of 2016.

“These amendments were proposed by the Labour Minister Dr. Anil Jayantha Fernando. The Legal Draftsmen has prepared amended draft bill to revise those Acts for which the concurrence of the Attorney General has now been granted,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at weekly post-Cabinet meeting media briefing on Thursday.

He said the new wage structure will take effect in two stages, beginning from 1 April 2025 while the second stage revision will begin on 1 January 2026.

“The national minimum monthly wage will increase by Rs. 9,500 rising from the current Rs. 17,500 to Rs. 27,000. This will further increase by Rs. 3,000 from Rs. 27,000 to Rs. 30,000 with effect from 1 January 2026,” he added.

Dr. Jayatissa also said in parallel, the minimum daily wage for the private sector will see an increase of Rs. 380 from 1 April 2025, moving from Rs. 700 to Rs. 1,080. “This too will be revised again from 1 January 2026, with the daily wage set to rise by an additional Rs. 120 reaching Rs. 1,200” he added.

He said the Government approved a significant revision to the national minimum wage structure for private sector employees, in line with the 2025 Budget proposals to increase public sector salaries to ensure income parity across both public and private sectors.

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