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Rs. 5,000 allowance for private sector: Employers hesitant, Government to push further

13 Feb 2022

  • ICEU requests Rs. 10,000 allowance
  • Rs. 5,000 allowance for public sector will cost Govt. estimated Rs. 84 b
  • TUs seek legislative changes from Trade Ministry if pvt. sector does not comply
By Maheesha Mudugamuwa Private sector employees are unlikely to receive the Rs. 5,000 allowances granted by the Government to public sector employees as employers have refused to invest more in employee salaries while they are still recovering from the economic impact of Covid-19. Initial discussions between Government officials and private sector employers recently concluded without a positive conclusion. However, the next round of discussions is to be held within the next few weeks, The Sunday Morning learns.  According to Commissioner General of Labour Prabath Chandrakeerthi, during the previous discussions the employers had been hesitant to grant the allowance of Rs. 5,000, with almost all of them claiming that their businesses had been severely affected by the Covid-19 pandemic.  “Most of the employers said they still cannot afford a Rs. 5,000 allowance as they can hardly meet the fund requirements to pay annual salaries. On the other hand, private sector employee unions are demanding Rs. 5,000 for the private sector as well,” he said.  Chandrakeerthi noted that even though the employers had not agreed, the Department would not give up its attempts. “We will continue our discussions with the employers,” he added.   The Rs. 5,000 allowance was among the Rs. 229 billion relief package recently announced by Finance Minister Basil Rajapaksa.  Meanwhile, Inter Company Employees Union (ICEU) President Wasantha Samarasinghe said employees had requested an allowance of Rs. 10,000 during the Budget last year but the Government could only offer half. He told The Sunday Morning that measures should also be taken to provide the same allowance to the private sector. In a backdrop of private sector employers refusing to pay the Rs. 5,000 allowance, trade unions have however urged the Government to enable private employees to receive the allowance via legislative measures.  During the meeting with Labour Minister Nimal Siripala de Silva, the trade unions have requested the Minister to bring in legislation to resolve the issue if employers continue to refuse to pay the allowance. At the discussion, Sri Lanka Nidahas Sevaka Sangamaya General Secretary Leslie Devendra proposed that the Government extend the proposed allowance to private sector employees by way of an Act of Parliament if employers oppose the move.  Free Trade Zones and General Services Employees Union Joint Secretary Anton Marcus stressed that employers must support this proposal in particular, considering the solidarity demonstrated by employees during the pandemic.  The representative from the Jathika Sevaka Sangamaya noted that it would be unfair on private sector employees if this allowance was limited to the public sector employees. Meanwhile, representatives from the Lanka Jathika Estate Workers’ Union requested the proposed allowance to be extended to the plantation workers by adding it to their daily wages. Accordingly, the Minister had recently submitted a Cabinet paper and in return, the Cabinet had once again requested Minister de Silva to launch a discussion with the Employers’ Federation in this regard. However, no date had yet been fixed by the Ministry to initiate the next round of discussions with the Employers’ Federation.  


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