Employee welfare role in Sri Lanka

 

Employee welfare role in Sri Lanka

 

Every organization is constantly looking for ways to stay ahead for achieving their goals by utilizing their workforce effectively and efficiently. In today's world most of the companies are considering their human resources as an imperative asset rather than a cost, which causes them to retain them to chase overall organizational objectives.

Moreover, providing a comfortable work environment and basic benefits is only one aspect of employee welfare. It includes fostering an atmosphere where workers feel appreciated, encouraged, and inspired to perform at their highest level each and every day. Human resource management needs to ensure the protection of employees' physical and mental health ( SabilS et al, 2023)

In terms of the Sri Lankan context, the law mandates provisions for wages, working hours, leave, and termination benefits, in addition According to the Department of Labor, the Shop and Office Employees Act regulates working hours, meal breaks, and overtime, while the Payment of Gratuity Act outlines gratuity payments upon termination, retirement, or death.

Furthermore, employees are entitled to EPF (12% from employer) and ETF (3% from employer funds), which provide retirement benefits.

Nevertheless, despite these considerations in terms of law, human resource management should raise their concern beyond these certain metrics.

In terms of consideration, an organization should prioritize employee’s mental health and well-being ( Law A,2020) In order to execute, they should provide confidential counselling related to either personal matters or work ( Siromani J,2023)

In addition, offering flexible working hours and remote work enables work-life balance. Additionally, providing fitness facilities( Fazlulhaq N, 2015) enables stress reduction and could lead to a focus on their day-to-day work.

Furthermore, social recreational activities like team-building events, social gatherings, and employee recognition programs can empower and motivate the workforce( Perera G, 2015)

Moreover, providing soft loans and financial assistance could retain the employee and manipulate them without force.

Besides, the Sri Lankan government is observing to establish child care centers in order to take care of the children of working women employed in the garment industry ( Themorning e newspaper, 2024)

In conclusion, despite conventional facilities, organizations need to pay close attention to retain their existing workforce by providing additional benefits and need to maintain proper communication to acknowledge their requirements in order to let them feel that they matter for the organization.

References 

Sabil S et al, (2023) The Role of Employee Welfare in Improving Work Productivity in Service Companies

Departmentof labor

Themorning e newspaper, (2024)

Perera G, (2015), The Effect of Welfare Facilities on Employee Retention in a Selected Company in Sri Lanka

Fazlulhaq N, (2015) The sunday times 

EPF

ETF 

Posted by - K M N R Wickramasinghe (E276762)

Comments

  1. HRM Blogs - (MN7234ES) - Batch 12July 25, 2025 at 8:20 AM

    Recognizing human resources as a vital asset rather than just a cost is key to achieving organizational success. Investing in people helps drive growth, innovation, and long-term sustainability.

    ReplyDelete
  2. Rukshani De SilvaJuly 25, 2025 at 8:55 AM

    Showing employees that they matter and offering benefits can help organizations keep their workforce motivated and loyal.

    ReplyDelete
  3. Ravindu Pathiraja E246111July 26, 2025 at 9:59 PM

    Organizations now see employees as valuable assets and must go beyond legal requirements to support their well-being. Offering flexible work, counselling, recreational activities, financial help, and recognition can improve morale, retention, and productivity. This is what should happen in every company in Sri Lanka rather seeing employees as a cost.

    ReplyDelete
  4. Hasitha AmarasekaraJuly 27, 2025 at 10:12 AM

    This is a thoughtful reminder that true employee welfare goes beyond legal requirements. Prioritizing mental health, flexibility, and meaningful support creates a motivated, loyal, and productive workforce.

    ReplyDelete
  5. G. MalaravanJuly 29, 2025 at 11:25 PM

    It's excellent to see the evolving perspective on human resources, moving from a mere cost center to an imperative asset. The comprehensive overview highlights how organizations are increasingly focusing on employee welfare beyond just basic compliance, particularly within the Sri Lankan context. The emphasis on mental health, work-life balance, recreational activities, and even financial assistance demonstrates a progressive and holistic approach to employee well-being. The government's consideration of childcare centers for garment workers further solidifies a societal shift towards supporting the workforce more fully. This thoughtful approach to employee retention, by acknowledging their needs and making them feel valued, is crucial for achieving organizational objectives in today's dynamic environment.

    ReplyDelete
  6. Bhagya-E215944July 31, 2025 at 10:03 AM

    Employee welfare in Sri Lanka boosts job satisfaction, ensures legal compliance, promotes health and safety, and supports employee well-being, leading to higher productivity and organizational loyalty.

    ReplyDelete
  7. Manoj RukshanAugust 1, 2025 at 7:32 AM

    Employee welfare in Sri Lanka must evolve beyond legal compliance to include holistic well-being (mental health, work-life balance, and financial support) to boost retention, productivity, and engagement. Organizations that proactively address these needs will gain a competitive edge in talent management.

    ReplyDelete

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