Sri Lanka’s wage board has announced new daily wage rates for tea and rubber workers effective from September 10, as detailed in a recent gazette notice. The minimum daily wage has been set at 1,350 rupees for a standard ‘norm’ of each estate. Additionally, workers will receive an extra 50 rupees for every kilo of produce harvested beyond the established norm.
The ‘norm’ refers to the typical quantity of leaves that can be plucked from a field. Fields with less sunlight or lower rainfall may have lower norms. This new wage formula was developed through negotiations with plantation companies and industry stakeholders.
Previously, a higher minimum wage of 1,700 rupees faced opposition from plantations, which argued it would reduce the volume of tea plucked. The new formula is expected to be more feasible and supports the increased plucking volumes seen on smaller plots of land.
The purchasing power of Sri Lanka’s plantation workers and other wage earners has been affected by macroeconomic policies, including substantial monetary expansion, which has led to currency depreciation. Plantations have also adopted ‘revenue share models,’ where workers are allocated specific plots of land for plucking.