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Legislation on way to enforce private sector salary hike

by Ananda Kannangara

Labour Relations and Foreign Employment Minister Athauda Seneviratna on Friday, May 13 stressed that employers in the private sector will have to comply with the proposed Rs. 1,000 salary hike which will come into force after the parliamentary approval next month.

Referring to various views, made by certain trade unions, affiliated to the private sector over the salary issue, the Minister said that at a time when the Government was able to increase the salaries of public sector employees by Rs. 2500, this was a very reasonable request made with regard to the salaries in the private sector. "Institution which fails to comply with this Government decision will have to face legal action," he said.

The Minister said the Cabinet approval has already been sought in this regard and it was directed to the Legal Draughtsman's Department last month.

The Bill is expected to present before the Parliament during the first week of next month.

"However, the institutions which maintain collective agreements with their employees to decide their own salary structures and the institutions which are governed by wages boards are exempted from this salary increase," he said. Meanwhile, the Minister said that some private sector institutions who are in better financial positions have agreed to increase the salaries of their workers even beyond the Government stipulated salary increase.

According to the new Bill, the wages of daily paid workers, engaged in carpentry, masonry and similar job categories too will be increased by Rs. 40 a day.

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