Sri Lanka - 3.3 Manual Labour

Overview

There are 5 types of workers in Sri Lanka: permanent workers, probationers, apprentices, temporary workers, and contract workers. The working hours and holidays are set according to 3 laws, namely Wages Board Ordinance of 1941, Shop and Office Employees Act of 1954, and Factories Ordinance of 1950. Female participation in the labour force is increasing year by year, but majority of the female work force engage in garment factories or handicraft fields. According to the Factories Ordinance, women should not be forced to work at night against their will. If a woman works at night, she shall be paid not less than 1 and ½ times her normal salary. The minimum age of recruitment in Sri Lanka is 18 years and the usual retirement age is 55 years. In Sri Lanka, forced labour and child labour is prohibited.

In private sector companies the contracts are time bound. The probation period of them are usually 6 months but can extend up to 9 if necessary. All contract workers work according to a specified job description for a fixed pay that does not involve overtime payments or additional ad hoc allowances. Temporary workers are hired on the basis of a particular task required to be done. On the contrary, in public sector employees get a permanent job till the retirement age of 55 years. However, both private sector and public sector use cost incentives for more efficiency in work. Incentives are like salary increments, insurance, and job security.

Employees have the right to form and engage in any union activity. Trade unions representing a category of employees can bargain against their needs from the employer. The unions stand their ground with the rights of the employees they are representing.

The National Minimum Wage of Workers Act No.03 of 2016 mandated that all private sector industries or services in Sri Lanka pay their workers a minimum wage, either on a monthly or daily basis, and made it a legal requirement. With the passing of the National Minimum Wage of Workers (Amendment) Act No.16 of 2021, which took effect from 16th August 2021, the national minimum monthly wage payable to a worker has been readjusted to LKR 12,500 (UDS 39.073), while the national minimum daily wage payable increased to LKR 500.

Labour Rate(s) Overview

(WageIndicator.org, 2019)