EFC Initiates a Study to Formulate a Position Paper on Operationalizing Living Wages in Sri Lanka – Employers’ Perspective
The Employers’ Federation of Ceylon conducted a Focus Group Discussion within its membership on 19 August 2026 at Cinnamon Lakeside, Colombo, as part of its ongoing initiative with International Labour Organization (ILO) to formulate a position paper on “operationalization of Living Wages in Sri Lanka”.
The discussion formed part of a qualitative research exercise aimed at gaining a deeper understanding of prevailing wage-setting practices in the Sri Lankan private sector and the range of financial and non-financial benefits provided by employers beyond the basic wage. The research seeks to examine how remuneration packages contribute to employees’ and their families’ living standards, while recognizing the operational realities and business considerations faced by employers.
The discussion explored the mechanisms and factors influencing wage determination, the rationale behind basic wage structures and broader remuneration packages, and the provision of additional benefits across different employee categories, including executive and above-level employees and manual and operational cadres. Particular attention was given to the overall value of employment packages, including the cost-to-company associated with an employee, and the contribution of benefits beyond the basic wage to employee and family wellbeing.
Participants also considered the challenges employers face in incorporating additional benefits into basic salaries, as well as the influence of statutory requirements, taxation, EPF/ETF obligations, labour market conditions and business sustainability on remuneration decisions. The discussion further considered the implications of evolving local and global developments, including responsible business conduct, supply chain expectations and international employment practices.
The study is expected to adopt a mixed-methods and consultative approach, drawing on secondary literature, policy and legal reviews, stakeholder consultations and employer-level insights. The findings from the focus group discussion will contribute to the development of the Position Paper, alongside the quantitative research being undertaken separately under the initiative.
Through this initiative, the EFC aims to contribute an evidence-based employer perspective to the dialogue on living wages in Sri Lanka, taking into account workers’ living standards alongside the practical considerations that shape wage-setting and remuneration practices in the private sector.