Sri Lanka Reviews Minimum Wage Policy for Migrant Workers Amid Labor Concerns

Strategic Insights -

Sri Lanka is reviewing its policy on minimum wages for migrant workers in the Middle East, amid growing concerns over worker protection and wage disparities. Minister Vijitha Herath stated that the Ministry is reviewing the possibility of reintroducing a mandatory minimum wage policy under the 2023-2027 National Policy and Action Plan on Migration for Employment. The review is being conducted with attention to international best practices, economic sustainability, and input from key stakeholders.

Key Takeaways:

  • Over 1.3 million Sri Lankans are currently employed in the Middle East, with the Government estimating that effective wage policies could boost annual remittances to at least $1.5 billion.
  • The Sri Lanka Bureau of Foreign Employment (SLBFE) is developing standard wage guidelines for recruitment agencies to prevent wage undercutting.
  • Sri Lanka no longer enforces a mandatory minimum wage for its overseas workers, but has signed bilateral labour agreements and Memoranda of Understanding (MoUs) with eight Middle Eastern countries to enforce standardised employment contracts, ensure fair wages, and provide mechanisms for dispute resolution and legal redress.
  • Minister Herath acknowledged that Sri Lanka is pushing for better wages through continued diplomatic negotiations, but also highlighted that wage differences may reflect individual skill levels and job performance.
  • The SLBFE is legally empowered to investigate complaints, penalise recruitment agencies for misconduct, and blacklist foreign employers guilty of contract violations.
  • Minister Herath outlined that wage conditions now largely depend on the laws of host countries, with Qatar, Kuwait, Saudi Arabia, and the UAE not currently having legislated minimum wages for foreign workers.

Statistics:

  • Over 1.3 million Sri Lankans are currently employed in the Middle East.
  • The Government estimates that effective wage policies could boost annual remittances to at least $1.5 billion.
  • Qatar has implemented a minimum wage of 1,800 Qatari Riyals (around $494) for all workers, including domestic staff.
  • Kuwait provides a lower minimum wage of around $240 per month.
  • Saudi Arabia and the UAE do not currently have legislated minimum wages for foreign workers.

Sources:

  • A statement made by Minister Vijitha Herath to Parliament on (no date provided)
  • National Policy and Action Plan on Migration for Employment 2023-2027