Cabinet has approved a support programme to help micro and small enterprises meet the mandatory 13th-month salary obligation.
Specifically, the Micro and Small Enterprises 13th Month Pay Support Programme targets eligible firms facing financial difficulty. Under the plan, the government will allocate SCR 5 million in the 2026 Budget. As a result, the funding will provide partial assistance while ensuring employees receive their full entitlement.
Meanwhile, Cabinet approved eligibility rules, assessment procedures, and safeguards for the programme. Officials say the measures will ensure fair targeting, transparency, and proper management.
The move follows changes introduced under the administration of Dr. Patrick Herminie.Earlier, lawmakers amended the Employment Act to make the full 13th-month salary mandatory.
Notably, the National Assembly approved the amended Act on 9 December.Under the revised law, workers receive a full payment without performance-based deductions.In practice, eligible employees will receive an amount equal to their basic monthly salary. However, the payment is capped at SCR 45,450 and is not subject to income tax.
Furthermore, the law sets 31 January 2026 as the payment deadline for the 2025 employment year. At the same time, certain workers remain ineligible, including foreign workers, trainees, and those on probation.
During the Assembly debate, the Minister for Employment and Human Resource Planning, Idith Alexander, presented the amendment. She said the SCR 5 million allocation would help private employers meet the compulsory payment costs.
Overall, the government says the combined measures protect workers’ rights while supporting smaller businesses during implementation.