Cabinet greenlights draft bill increasing national minimum wage

The Cabinet green light has been granted to the draft bill amending the he National Minimum Wage of Workers Act No. 3 of 2016 in order to adjust the national minimum wage to Rs. Rs. 17,500 from current Rs. 12, 500.

The Minister of Labour and Foreign Employment Manusha Nanayakkara on Monday sought the approval of the Cabinet of Minister to publish the draft bill in the government gazette notification, and subsequently submit it to the parliament for its concurrence.

Based on a recommendation of a tertiary sub committee comprised of trade unions and employers on 25th of March this year, the Cabinet of Ministers decided to revise the National Minimum Wage of Workers Act No. 3 of 2016 in order to increase the minimum national wage of private sector employees to Rs.17, 500 per month and Rs.700 per day. 

The 40 percent increase in the minimum wage is to support workers struggling with the cost of living as it escalated with the economic crisis in 2022. 

Accordingly, the clearance of the Attorney General has been granted to the draft bill prepared by the Legal Draftsman.