BUDGETARY RELIEF ALLOWANCE OF WORKERS ACT, NO.4 OF 2016
I hereby inform the General Public, the Trade Unions and the Employees and Employers of the Private Sector
that the Parliament of The Democratic Socialist Republic of Sri Lanka has enacted the Budgetary Relief Allowance of Workers Act No.4 of 2016 with the certification of Hon.Speaker on 23rd March, 2016. The Act provides for the payment of a Budgetary Relief Allowance by employers to workers in two stages namely Stage I payment1 – S.3(1) With effect from 1stof May, 2015 -
(a) A monthly payment of Rs.1500/- to the workers whose monthly wages or salary is Rs.40,000/- or below.
However for any reason other than the failure of the employer to provide work for such worker does not work for required number of days in a month, the allowance payable to such worker shall be in proportion to the number of days he has worked during the month.
(b) A payment of Rs.60/- , to a daily rated worker whose daily rate is not exceeding Rs.1600/- for the relevant month.
( c) A payment of an allowance to a piece rated worker in the relevant month shall not be less than fifteen percentum.
(The payments under above (a),(b) or (c) shall not exceed Rs.1500/-).
(d) a worker whose monthly wages or salary for the relevant month exceeds Rs.40000/- but does not exceed Rs.41500/- the allowance payable to him shall be the balance upto Rs.41500/-.
(e) a daily rated worker whose daily rate exceeds Rs.1600/- but does not exceed Rs.1660/- for the month, the daily allowance payable shall be one twenty fifth of the difference between Rs.41500/- and the total wages of the relevant month.
Stage II payment 2- S.3(2) - With effect from 01st January, 2016 in addition to the payment made in stage I, every employer shall pay to the workers;
a monthly payment of an allowance of Rs.1000/- to a worker whose salary or wages for the relevant month is Rs.40,000/- or below;
Proviso to paragraph(a) of subsection (1) of section 3 will apply in respect payment to a worker who works less than therequired number of days in a month.
(b) a payment an allowance of Rs.40/- daily to a daily rated worker whose daily rated payment does not exceed Rs.1600/- for the month.
(c) a payment of an allowance in the relevant month not more than ten percentum to a piece rated worker for that month.
Provided however the total allowance payable for a month under (a), (b) or (c) shall not exceed Rs.1000/-.
The allowance payable under stage (I) or (II) or both together shall be subjected to a maximum limit of the total wages or salary of Rs. 41,500/-.
An employer who had made wages or salary increase of the worker during the period between October 01st, 2014 and April 30th, 2015 if such increases added together exceed the amount to be increased in respect of Stages I and II he shall be exempt from the payment of allowance. However if the amount so increased does not exceed the allowance payable under the two stages the worker is entitled to the balance upto the allowance to be increased under I and II stages as the case may be. Section 3 – subsections (4), (5), (6).
The allowance payable in Stages I and II to a worker shall constitute part of the wages or salary of such worker and includes for the purposes of contributions to Employees Provident Fund, Employees Trust Fund, wages or salary of annual holiday or leave, overtime remuneration, maternity benefits payment and gratuity. (Sec. 9).
For the purpose of payment of arrears before the date of the Act i.e. 23rd March, 2016 section 13 of the Act will apply enabling the employer to pay the arrears within a period of twelve months (counted from 23rd March, 2016) in equal monthly installments or an higher amount at the option of the employer. (section 13)
A worker covered by a collective agreement or covered under such extended agreement entered into under the Industrial Disputes Act which is in force and contains provisions relating to increase of wages or a worker who is employed by any charitable institution within the meaning of the Inland Revenue Act No.10 of 2006 or by any religious institution maintained for or connected with worship will not be entitled to the allowance under the Act. [Subsections (7) and (8) of section 3]
The Competent Authority for the purpose of administration of the Act is Commissioner General of Labour.
I further inform that this notification contains only the basic provisions of the Actrelating to payment of the Budgetary Relief Allowance. However for details regarding the provisions relating to payment of the allowance, exemptions allowed under the Act; deferment of the period of payment, maintenance of records or registers by the employer, powers of the Competent Authority, enforcement of the law, offences and penalties, interpretations etc., please see the Act No.4 of 2016.
For any clarification please contact the Department of Labour through Tel. Nos. 2586980, 2369084, 2368094, 2582608.
Minister of Labour and Trade Union Relations
Ministry of Labour and Trade Union Relations