Department of Labour - Ministry of Labour
Media Release on Private Sector Wage Increase
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20260201
In accordance with the provisions of the National Minimum Wage of Workers (Amendment) Act No 11 Of 2025, the National minimum wage in the private sector will increase from Rs.27,000 to Rs. 30,000 with effect from 1 January 2026. Similarly, the daily wage will increase from Rs, 1,080 to Rs.1,200. Accordingly, Employers are required to make the relevant payments. When duly implementing this Amendment Act, every employer including the immediate employer as well as the final employer is bound by law under the provisions of the said Act in respect of an employee engaged in any industry or service through an intermediary or a contractor. Also, in terms of section 4 of the Amendment Act, except for the addition of Budgetary relief allowance, other allowances received by an employee as of 31.03.2025 should not be used to offset the minimum wage. According to this wage increase, the responsibility of making all statutory payments, such as Employees' Provident Funds, Employees' Trust Funds, Overtime, Gratuity, Maternity benefits and Holiday payments rests with employers. If an employer fails to make these payments properly, complaints regarding the same can be entered into the Complaints Management System of the Department of Labour via cms.labourdept.gov.lk or submitted in writing to the nearest Labour Office.
