Discussions to increase minimum wage “significantly” to begin shortly

The Labour Ministry plans to commence discussions with trade unions and employers with a view to increase the minimum wage by a “significant” amount in line with the cost of living.

Labour and Foreign Employment Minister Manusha Nanayakkara recently announced that  the government would take measures to increase the minimum wage of private sector employees and estate workers following discussions with stakeholders.

Speaking to Mirror Business, the Secretary to the Ministry of Labour and Foreign Employment, R. P. A. Wimalaweera said that discussions with labour unions and employers would begin shortly with a view to increase the current minimum monthly wage of Rs.12, 500 by a significant amount.

Accordingly, tri-party discussions are expected to begin at the National Labour Advisory Council.
However, Employers’ Federation of Ceylon (EFC) Director General / Chief Executive Officer Mangala P. B. Yapa noted that EFC has so far not been approached by the government or labour unions on the matter.
“We can’t comment without a proposal,” he said.

Prior to the presentation of 2022 budget, the trade unions proposed the monthly minimum wage to be increased to Rs.25, 000. However, the negotiations were unsuccessful as unions and employers failed to reach consensus.
The sharp increase in inflation in recent months has resulted in a marked decline in real wages with an estimated five million people being unable to afford food. 

The country’s headline inflation accelerated by 45.3 percent in May which is the highest since 2015 driven by rising food and transport costs. Food prices rose by 58 percent in the month from a year earlier while transport costs jumped 76.7 percent.