PRICE ANALYSIS

(WAGE RATES)

CH. QS HASITHA GUNASEKARA

M.SC IN PM, B.SC (HONS.) QS, DIP. ARBITRATION,
FIQS.SL, MAIQS, ACIARB, MCIOB, MRICS
INTRODCTION

Project Cost
 Labour
 Plant/ equipment
 Material
 Overheads
Categorizing Labour

• Recruitment Type
• Skilled level
Labour – Recruitment type

Construction
Workers

Sub
Direct
Contracted

Casual Labour+
Permanent Labour Only
Workers Materials
 Labour – Skilled level

1. Special Skilled
2. Skilled
3. Semi Skilled
4. Unskilled
Labour payments

 Monthly salary
 Daily wages
 Sub contract payments
Direct labour

Sri Lanka has two main laws relating to the payment and fixing of wages.
These are:
 The Wages Board Ordinance of 1941, and
 The Shop and Office Employees Act of 1954
Direct labour salary components

• Basic Salary
Allowances
• Travel
• Medical
• Food
• uniform
Additions
• Normal Overtime
• Double Overtime
• Triple Overtime
Deductions
• EPF (8%)
• Payee Tax (Only for more than Rs. 50,000.00)
• Stamp Fee
Company Contribution
• EPF 12 %
• ETF 3 %
• TOTAL COMMITMENT OF COMPANY
Overtime

 According to The Shop and Office Employees Act the period of work for a
day is eight hours, and for a week it is forty five hours. Therefore any
additional hours of work is considered overtime.
 However this provision is not applicable to managers and executives in a
public institution
 The method of calculation of overtime per hour is: Monthly Salary x 1.5 /
240
Leave entitlement

Casual Leave Annual Leave Public Holidays Maternity Leave Poya Holidays
1/2 Day per month in No entitlement in 84 working days for the each Poya day is
the first year of the firs year of first and second child considered a
employment. service 08 Public holidays per year, births. holiday.
1. National Day
2. Thaipongal
3. The day previous to the
Sinhala Tamil new year day.
The leave earned
according to the
07 days from the period of service
second year of can be obtained 4. the Sinhala Tamil new year 42 days for the third and
employment. (maximum – 14) day. succeeding child births. -
In the succeeding
years earned
- leave of 14 days. 5. May day. - -
6. The day following Vesak
- - Poya day. - -
- - 7. Holy Prophet's Birthday. - -
- - 8. Christmas Day. - -
Taxation

A receipt or discharge given for Money or Property (including Remuneration)

– Stamp duty

Up to Rs. 25,000/- Exempt

Above Rs. 25,000/- Rs. 25/-

PAYE TAX
•The tax free threshold of 100,000 per month will be available for every employee on
their employment income.
•The income from the secondary employment up to Rs. 50,000 per month will be
liable for PAYE at 10 percent and if it is more than Rs. 50,000, the tax will be at the
rate of 20 percent.
•The PAYE of the employees of state owned enterprises and other government
institutions should be deducted from the employees‟ emoluments and should not be
Wage rate calculation

TOTAL REMUNERATION / (365 – Entitled leaves)