Full implementation of new minimum wage law to raise pay to Rs. 27,000

Wednesday, 15 October 2025 00:00 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday said the Cabinet has approved the implementation of the National Minimum Wage of Workers (Amendment) Act, No. 11 of 2025, which raises the monthly minimum wage for private sector employees from Rs. 17,500 to Rs. 27,000 with effect from 1 April 2025.

Under the new law, the minimum wage will rise further to Rs. 30,000 from 1 January 2026, aligning with the 2025 Budget proposal to increase private sector pay in parallel with public sector salary adjustments.

The legislation, passed by Parliament on 22 July, also stipulates that the revised wage applies to all statutory payments including the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), overtime, maternity benefits, probationary pay, and holiday entitlements.

The law places responsibility on all employers, including intermediaries and contractors, to comply with the new wage structure. The Commissioner General of Labour has been tasked with enforcing the provisions, with public awareness already underway through official notices and newspaper advertisements.

The Labour Minister informed the Cabinet that necessary steps are being taken to ensure full implementation and compliance across all industries and services.