November 08, Colombo (LNW): President Anura Kumara Dissanayake has indicated that the Government is considering a further increase in the Pay-As-You-Earn (PAYE) tax-free threshold under the 2027 Budget, offering the possibility of additional financial relief for salaried workers.
Speaking at the National Trade Union Convention in Colombo yesterday (07), the President said the existing threshold had already been raised from Rs. 100,000 to Rs. 150,000, with further changes expected to be announced when the Budget is presented to Parliament next week.
He acknowledged that taxation continued to place considerable pressure on employees, particularly those earning higher salaries, and said the Government was looking at ways to ease this burden through adjustments to the existing tax framework.
Dissanayake also highlighted the importance of the private sector in sustaining the national economy, noting that the welfare and financial stability of its workforce remained an important consideration for the Government.
According to the President, discussions with private-sector employers and business organisations had already resulted in measures to improve workers’ basic salaries. However, he pointed out that salary increases alone might not adequately address the rising financial demands faced by employees.
He said the Government had therefore examined additional forms of assistance, including supplementary allowances and possible changes to PAYE deductions, as part of its broader efforts to improve workers’ take-home earnings.
The President reiterated that safeguarding employees’ economic interests should not be limited to one segment of the workforce, stressing that public-sector, semi-government, plantation and private-sector employees all deserved attention.
The proposed PAYE adjustment is expected to be among the measures outlined in the forthcoming Budget, although the precise details of any increase will depend on the Government’s final proposals.