• Pvt. sector min. wage hiked by Rs. 3k 
• State pension provisions of post-1 Jan. 2016 recruits to be amended  

The Cabinet of Ministers has approved the relief measures proposed in this year’s (2026) Budget to improve the living standards of plantation workers. To ensure that plantation workers receive a fair daily wage, the President, while presenting the 2026 Budget, proposed raising the daily minimum wage for plantation workers to Rs. 1,550 by proposing a daily attendance incentive of Rs. 200. A sum of Rs. 5,000 million has been allocated in the 2026 Budget to implement the proposal. Accordingly, from 1 January 2026, the attendance incentive will be paid through companies for a period of six months, after which it will be directly credited to the plantation workers’ personal bank accounts. The Plantation and Community Infrastructure Ministry is coordinating with all the relevant parties to ensure the proper implementation of this mechanism, said the Cabinet Spokesperson Dr. Nalinda Jayatissa. Under the system, the Cabinet has approved the joint proposal submitted by the Labour Minister and the Plantation and Community Infrastructure Minister for the payment of the incentives to plantation workers.

Meanwhile, the minimum wage of employees in the private sector has been increased by Rs. 3,000, with effect from 1 January 2026. Issuing a statement, the Labour Commissioner General, H.M.D.K. Nadeeka Wataliyadda stated that accordingly, the minimum wage has been increased from Rs. 27,000 to Rs. 30,000. The wage increase has been implemented in accordance with the provisions of the National Minimum Wage of Employees (Amendment) Act, No. 11 of 2025. Wataliyadda noted that when properly enforcing the said Act, every employer, including both the immediate employer and the principal employer, is bound by the provisions of the Act in respect of any employee engaged in an industry or service through an intermediary or contractor. Furthermore, according to Section 4 of the Act, no allowance other than Budgetary relief allowances received by an employee as at 31 March of last year (2025) shall be used to offset or substitute the minimum wage. In line with the wage increase, the responsibility of applying it to all statutory payments, including the Employees’ Provident Fund, the Employees’ Trust Fund, overtime payments, gratuity, maternity benefits and leave payments, lies with the employers, Wataliyadda noted. If any employer fails to make the required payments properly, complaints may be submitted through the Labour Department’s Complaint Management System via cms.labourdept.gov.lk, or submitted in writing to the nearest Labour Office, Wataliyadda added. 

Elsewhere, Cabinet approval has been granted to amend the provisions regarding pension entitlements in the appointment letters of State employees recruited after 1 January 2016. According to the 2016 Budget proposal, which introduced a more suitable contributory pension scheme for public officers, all officers recruited to the public service from 1 January 2016, had the following provision included in their appointment letters: “This appointment carries a pension. You are subject to any future policy decisions regarding the pension scheme applicable to you as determined by the Government.” However, since 1 January 2016, a new pension scheme for State employees has not been implemented. Accordingly, to confirm their entitlement under the existing pension scheme and to amend the pension-related clause in their appointment letters, the 2026 Budget has proposed necessary changes, Dr. Jayatissa stated. Accordingly, the appointment letters of all State employees recruited after 1 January 2016, will be amended to include the following pension provision: “This appointment carries a pension. In addition, you are required to contribute to the Contributory and Non-Contributory Pension Scheme / Contributory Male and Non-Contributory Pension Scheme. You must make contributions as prescribed by the Government from time to time.” Accordingly, the proposal submitted by the Public Administration Minister to issue the relevant circular instructions for the amendment has been approved by the Cabinet.