LNP – Private sector minimum wage to be increased to Rs. 27,000

The national minimum monthly wage in the private sector will be increased to Rs. 27,000 this year, according to the budget proposals, the Ministry of Labour announced.

The Ministry also said that the national minimum daily wage will be increased from Rs. 700 to Rs. 1,080.

The current national minimum monthly wage of Rs. 21,000 paid by the private sector is comprised of Rs. 17,500 under the National Minimum Wage (Amendment) Act No. 48 of 2024, a Rs. 1,000 Budget Relief Allowance under the Budget Relief Allowance Act No. 36 of 2005, and a Rs. 2,500 Budget Relief Allowance under the Budget Relief Allowance Act No. 4 of 2016.

Accordingly, the previous budget relief allowances totaling Rs. 3,500 will now be incorporated into the basic salary/wages. This increase in the basic salary may also lead to an increase in other employee benefits tied to the basic wage. For employees who were already receiving a salary, basic salary, or wage above the national minimum wage prior to the implementation of this Act, these budget relief allowances will be considered part of the basic salary and added accordingly.

The national minimum monthly wage, set to increase to Rs. 27,000 this year, is scheduled to rise further to Rs. 30,000 next year. Similarly, the minimum daily wage will increase from Rs. 1,080 to Rs. 1,200. The proposal submitted by the Minister of Labour has received Cabinet approval, and the Ministry announced that steps are being taken to present the relevant draft bill to Parliament without delay.