By: Staff Writer
October 08, Colombo (LNW): Despite a previous directive to raise the daily wage of Sri Lanka’s plantation workers to Rs. 1,700, the workers will now receive a revised daily minimum wage of Rs. 1,350, along with an additional allowance of Rs. 50 for each extra kilogram of harvest starting from October 10.
This decision comes after extensive discussions among Regional Plantation Companies (RPCs), trade unions, and the Wages Board, which led to an agreement with the Estate Sector Wage Control Council at the Labour Department.
According to industry sources, the new regulations, outlined in the latest Gazette, require RPCs to pay this base wage of Rs. 1,350 beginning on October 10.
While the Rs. 1,350 excludes contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), the total daily earnings for workers will exceed Rs. 1,500 once these benefits are included.
Wages for these plantation workers, generally calculated at the end of each month, are scheduled to be paid on the 10th of the subsequent month.
The current wage agreement, reached on September 10, marked the conclusion of a series of disputes between employers and trade unions, with the workers continuously advocating for improved pay and conditions.
The new wage structure represents a significant step forward for plantation workers, who have long struggled for fairer wages. This productivity-based model allows workers in the tea and rubber sectors to earn additional income, with a potential increase of Rs. 50 or more depending on their output.
This revised wage system specifically targets workers in the tea and rubber industries, encompassing roles in tea cultivation, tea manufacturing, rubber cultivation, and raw rubber processing.
Under the existing system, plantation workers earn a base wage of Rs. 1,000 with an additional Rs. 40 per kilo after achieving a target of 20 kilos of tea leaves.
Previously, plantation companies had legally contested the directive to pay the Rs. 1,700 wage, with the prior government threatening to expropriate firms that did not comply.
An official confirmed that while the base wage of Rs. 1,350 remains, with the addition of EPF, ETF, and gratuity, workers’ earnings could exceed Rs. 2,000 per day.
The wage increase to Rs. 1,700 had initially been announced by former President Ranil Wickremesinghe at a May Day rally earlier in the year, with politicians from the ruling coalition at that time pressuring plantation companies to implement the change.
Despite resistance, about 14 boards ultimately voted in favor of the Rs. 1,700 wage, as noted by, a representative of the Ceylon Workers Congress, the leading labor union.
While the revised wage is lower than the initially proposed Rs. 1,700, it still marks a significant improvement for plantation workers, taking into account the productivity-based incentives.
This approach aims to balance the interests of both workers, who have long been advocating for better pay, and the plantation companies, which had previously opposed the wage increase.
The final agreement showcases a crucial effort to address workers’ grievances while also considering the sustainability of the plantation sector.
