April 10, Colombo (LNW): The Ministry responsible for labour affairs has announced a comprehensive uplift in private sector wages, as part of a broader economic strategy outlined in the government’s 2025 financial roadmap.
The changes, intended to support income security and enhance worker welfare, mark one of the most significant wage policy shifts in recent years.
According to the Ministry’s official communication, a phased increase in both the basic salary and minimum daily wage will take effect this year, following approval by the Cabinet.
The revised wage structure proposes a hike in the basic salary from Rs. 21,000 to Rs. 27,000, alongside an increase in the minimum daily wage from Rs. 700 to Rs. 1,080.
These measures are grounded in commitments made within the national budget for 2025, and the relevant legislative framework is expected to be tabled in Parliament in the coming weeks.
Historically, the minimum wage figure of Rs. 21,000 has been a composite amount, comprising Rs. 17,500 under the National Minimum Wage of Workers (Amendment) Act, Rs. 1,000 under the 2005 Budgetary Relief Allowance Act, and a further Rs. 2,500 allocated in the 2016 Budgetary Relief Allowance legislation.
The forthcoming changes will incorporate an additional Rs. 3,500 that had previously been distributed as a separate relief allowance, consolidating it into the base wage and effectively raising the financial floor for workers.
Looking ahead, the Ministry has revealed that a further increase is anticipated in 2026. At that time, the basic salary is projected to climb to Rs. 30,000, while the daily minimum wage is set to rise to Rs. 1,200.
This dual-phase wage enhancement plan forms part of a broader effort to ease the burden of living costs and foster a more equitable labour market across the country’s private sector.
Government officials argue that these steps are essential in aligning national wage standards with rising inflation and the evolving demands of the workforce.
They also believe it will have a positive spillover effect, stimulating domestic consumption and improving household stability, particularly in low-income communities.
Whilst some in the business community may raise concerns about short-term cost implications, authorities maintain that the initiative is both fiscally responsible and socially necessary.
