National Minimum Wage Rises to Rs 17,745 Starting from 1 January 2026

The national minimum wage has officially risen to Rs 17,745 per month, effective from 1 January 2026. The increase follows the implementation of a Rs 635 salary compensation package, which was formally approved by the Council of Ministers on Friday, 9 January.

The adjustment sees the baseline pay climb from its previous level of Rs 17,110. This change forms part of the Salary Compensation 2026 framework, for which the Cabinet has now authorised the promulgation of several key regulations.

Key Adjustments for Workers

Under the newly established Workers’ Rights (Additional Remuneration) Regulations 2026, specific categories of employees will receive an additional remuneration of 3.7 per cent. The updates include:

• Part-time Workers: Those earning a monthly base salary below Rs 17,110 will receive a 3.7 per cent adjustment, rounded up to the nearest rupee.
• Piece-rate Workers: Staff in sectors such as fisheries, cinema, and the tea industry will see their rates increase by 3.7 per cent, capped at a maximum of Rs 635 per month.

Graduate Pay and Export Sector

The Cabinet also greenlit the Export Enterprises (Remuneration) (Amendment) Regulations 2026, which facilitate adjustments to both the monthly base salary and the national minimum wage within the export sector.

Significantly, the new regulations mandate minimum salary thresholds for qualified professionals:

• Diploma holders: Must now receive a minimum monthly salary of Rs 24,245.
• University degree holders: Are entitled to a minimum monthly pay of Rs 26,245.

These measures aim to ensure that the purchasing power of workers across various sectors is maintained through the start of the new year.

Source: Defi Media