Private sector workers’ pay hike at employer’s discretion
The government’s request to grant private sector workers a wage increase of Rs.2,500 per month goes against trade union proposals urging the government to make it mandatory.
The request to the private sector was made during the budget speech by Finance Minister Ravi Karunanayaka in Parliament on Thursday.
Employers Federation of Ceylon CEO Ravi Peiris told the Business Times that this request could be taken up by the employers or not as it was not made compulsory as some establishments would not be able to pay such sums to their employees.
Mr. Peiris a few days prior to the budget presentation had written to President Maithripala Sirisena to not make it mandatory that private sector companies grant this wage hike.
He pointed out that this was due to the fact that companies had different wage structures and wage practices and in this regard it would distort their salary payment systems.
In addition, it was noted that some companies would have already provided a salary increment to its employees and it would not be fair to request them to provide a further increase.
In this respect, the Inter Company Employees Union request to make this increase mandatory to the private sector had not materialised.
Labour Department statistics indicate that private sector workers as of 2013 with contributions made to the EPF are 2,289,581 in 75,543
establishments.