Press briefing of Cabinet Decision taken on 2020-10-26

Extending the grace period agreed on the payment of the salaries to the private sector employees in the wake of the crisis caused by the Covid-19 pandemic

- A Task Force has been appointed representing Employers, Trade Unions, the National Labour Advisory Council, the Ministry of Labour and the Department of Labour has been appointed to look into the payment of salaries to the private sector employees in the wake of the crisis caused by the Covid-19 pandemic. The said Task Force has agreed to take action as follows from May to September, 2020.

• Retaining the jobs of employees of institutions which suspended operations due to the Covid 19 pandemic.

• to make arrangements to deploy employees on a roster basis or any other suitable method enabling them to serve proportionately where the institution that can't deploy all their workers in the duty due to the requirement of maintaining social distancing.

• to pay either 50% of the basic salary of the relevant month in which employee last received his full salary or Rs.14,500, whichever is more remunerative to the employee, in respect of employees of the institutions which had a requirement to retain their workers at home due to the absence of work.

• to pay contributions to the Employees’ Provident Fund and the Employees Trust Fund by the employer for the salaries so paid.

The Cabinet noted that the matters submitted by the Minister of Labour to the effect that the said Task Force is in agreement to take action as mentioned above up to December of this year as the spread of Covid-19 pandemic further continuing in the country.