Private Sector Minimum Wages to Increase from January 1
Private sector employees will receive a salary increase from January 1, 2026, with the national minimum wage set to rise under the National Minimum Wage of Employees (Amendment) Act No. 11 of 2025.
According to Commissioner General of Labour Mrs H. M. D. N. K. Wataliyadda, the monthly minimum wage in the private sector will be increased from Rs. 27,000 to Rs. 30,000, while the daily minimum wage will rise from Rs. 1,080 to Rs. 1,200, effective January 1, 2026.
She stated that all employers are legally required to implement the revised wage structure. This obligation applies to every employer, including both immediate and ultimate employers, even in cases where employees are engaged through intermediaries or contractors, across all industries and services.
The Commissioner General further emphasized that, in terms of Section 4 of the amended Act, allowances received by employees as of March 31, 2025—other than budgetary relief allowances—cannot be used to offset or adjust the revised minimum wage.
In addition, employers will be fully responsible for applying all statutory payments linked to the new wage structure. These include contributions to the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), overtime payments, gratuity, maternity benefits, and payments for holidays.
Mrs. Wataliyadda noted that legal action may be taken against employers who fail to comply with the amended Act. Employees can lodge complaints through the Department of Labour’s Complaints Management System at cms.labourdept.gov.lk or submit complaints in writing to the nearest Labour Office.
