Here’s How the Private Sector Minimum Wage is Set to Rise

The Ministry of Labour, issuing a statement, announced that the National Minimum Monthly Wage
(NMMW) for the private sector, which had so far been Rs. 21,000 per month, will be increased to
Rs. 27,000 per month from this year, in line with the Budget proposals. It has also been decided to
increase the National Minimum Daily Wage (NMDW) from Rs. 700 to Rs. 1,080.
The current National Minimum Monthly Wage (NMMW) of Rs. 21,000 paid to the private sector is
the total of three components: Rs. 17,500 paid under the National Minimum Wage of Workers
(Amendment) Act, No. 48 of 2024, the budgetary relief allowance of Rs. 1,000 paid under the
Budgetary Relief Allowance of Workers Act, No. 36 of 2005, and the budgetary relief allowance of
Rs. 2,500 paid under the Budgetary Relief Allowance of Workers Act, No. 4 of 2016.
Accordingly, the previously granted budgetary relief allowances amounting to Rs. 3,500 will
hereafter be added to the basic salary/wage, and with this increase in the basic salary, the
benefits received by employees based on their basic pay may also increase. For employees who
were receiving a salary, basic salary, or wage above the National Minimum Wage (NMW) prior to
the effective date of this Act, the said budgetary relief allowances will be considered and paid as a
part of the respective basic salary or wage.
This year’s increased National Minimum Wage (NMW) of Rs. 27,000 is scheduled to be further
increased to Rs. 30,000 from next year, while the daily wage will also be raised from Rs. 1,080 to
Rs. 1,200. The Ministry of Labour has announced that Cabinet approval has been granted for the
proposal presented by the Minister of Labour in this regard, and that steps are being taken to
promptly present the relevant Amendment Bill to Parliament.