Understanding the Sri Lanka Shop & Office Employees Act and Wages Board Ordinance

Knowing your rights and responsibilities as an employer or employee is essential for creating a fair, transparent workplace. Sri Lanka’s Shop and Office Employees Act and Wages Board Ordinance set out the standards for working hours, leave, holidays, and remuneration for private-sector workers.

This guide summarizes the key provisions — so you can better understand how your entitlements are protected under Sri Lankan labour law.

🏢 Who Is Covered

The Shop and Office Employees Act (No. 19 of 1954) applies to anyone employed in or about the business of a shop or office, including:

• Retail or wholesale businesses, hotels, cafés, restaurants, barber or salon services, and similar trades.

• Offices related to banks, insurance companies, shipping firms, brokers, advertising or commission agents, accountants, estate agents, and similar professional or commercial establishments.

• Administrative or clerical departments within factories, estates, media houses, and transport companies.

Essentially, if your workplace operates as a business, trade, or professional service — chances are you’re covered.

💰 Definition of “Remuneration”

“Remuneration” includes:

• Your base salary or wages,

• Cost of living allowance,

• Overtime pay, and

• Any other legally prescribed allowance.

“Full remuneration” means your normal rate of pay — the same rate you earn for a regular working day — when you take approved leave or holidays.

⏰ Overtime and Allowances

Overtime is any work performed beyond the standard daily or weekly limit set out in Section 3 of the Act. In addition to regular wages, private-sector employees are entitled to:

• A Budgetary Relief Allowance of Rs. 3,500, under Acts No. 36 of 2005 and No. 4 of 2016.

• Overtime pay, calculated based on the prescribed rate determined by the Wages Board relevant to the employee’s trade or industry.

🗓️ Leave and Holidays Under the Shop & Office Employees Act

Weekly Holidays

Every employee must receive one full day and one half-day off each week with full pay, provided they have worked at least 28 hours (excluding overtime) during that week.

Annual Leave

Annual leave entitlements depend on when employment begins:

• Jan 1 – Mar 31: 14 days

• Apr 1 – Jun 30: 10 days

• Jul 1 – Sep 30: 7 days

• Oct 1 – Dec 31: 4 days

From the second year onward, employees are entitled to 14 days of annual leave each year, with at least 7 consecutive days.

Casual Leave

Employees are entitled to 7 days of casual leave each year for personal matters, illness, or other reasonable causes. During the first year, this is earned at 1 day for every 2 months of completed service.

Poya Day Leave

Every employee is entitled to a paid holiday on each Full Moon Poya Day. If a Poya Day coincides with another official holiday, no extra day is granted in lieu.

Public Holidays

Employees are entitled to up to 9 paid public holidays each year, as declared by the Minister through the Government Gazette.

⚖️ Wages Board Ordinance

The Wages Board Ordinance governs minimum wages, overtime, working hours, and conditions for various industries and trades.

Key Terms

• Trade: Any business, profession, or industrial undertaking (except those run for training or charitable purposes).

• Worker: Anyone employed to perform work in a trade.

• Wage: Includes normal pay, overtime, and holiday pay.

• Wage period: The specific period for which wages are payable.

Minimum Wages & Overtime

Each industry’s Wages Board determines:

• Minimum basic wage,

• Overtime calculation method, and

• Standard working hours.

Employees should refer to the official Wages Board Schedule published in the Gazette for the latest rates and allowances.

As with the Shop & Office Act, all private-sector employees are entitled to the Rs. 3,500 Budgetary Relief Allowance under the same legislation.

💡 Why This Matters

Understanding these laws protects both employers and employees. For employers, it ensures compliance and avoids penalties. For employees, it guarantees fair treatment, proper pay, and awareness of their entitlements.

With HR360, all these standards — from leave tracking to overtime and payroll calculations — are built into the system automatically. That means businesses stay compliant, and employees can rest assured their rights are respected.