Tea and rubber estate workers have won an 18 percent hike in their basic daily wage from April 01 effective for two years, which may cost firms in excess of Rs.250 million rupees a year, industry officials said.

The basic wage was increased from Rs.380 to 450 a day up 18.4 percent, while an attendance allowance (for 75 percent attendance on days offered work) was increased to Rs.140 a day from Rs.105, an Employers Federation of Ceylon spokesman said.

A so-called price share supplement remained at Rs.30 a day, making the fixed daily wage Rs.480, up 17 percent.

“I feel that there was a reasonable increase,” Planters Association chief Lalith Obeysekera said. “Unions have given an undertaking on improving productivity.”

The collective agreement was signed with Ceylon Worker’s Congress, Lanka Jathika Estate Worker’s Union and the Joint Plantations Trade Union Centre.

Unions and employers had reached an agreement after negotiating for a day. The new wage scheme will be applicable for two years from April.