Phased Salary Increase for Public Sector Workers

COLOMBO (News 1st); The Sri Lankan Government has announced a comprehensive revision of the salary structure for the public sector, marking the first such revision in nearly a decade. 

The proposed changes include an increase in the minimum monthly basic salary from Rs. 24,250 to Rs. 40,000, representing a rise of Rs. 15,750. 

The current ad-hoc interim allowance and special allowance will be integrated into the basic salary, resulting in a net increase of Rs. 8,250 in the minimum salary.

This salary increase will also apply to judicial services, public corporations, statutory boards, university staff, and officers of the tri-forces, aligning with the minimum basic salary increase for public sector employees.

Additionally, the value of the annual salary increment will be raised by 80 percent, increasing the minimum annual increment from Rs. 250 to Rs. 450.

The total estimated cost of this salary increase is expected to be Rs. 325 billion.

Given the current fiscal constraints, the salary increase will be implemented in phases. Starting from April 2025, Rs. 5,000 and 30 percent of the balance amount will be paid, with the remaining 70 percent being distributed in equal portions beginning in January 2026 and January 2027. 

Rs. 110 billion will be allocated for the proposed salary increase in 2025, said the President in his budget speech.

Retirement benefits for officers retiring on or after January 1, 2025, will be calculated based on the new salary structure, ensuring they receive benefits under the proposed 2025 salary scheme. 

Additionally, the limit on distress loans for public servants will be increased from Rs. 250,000 to Rs. 400,000, reflecting the increase in the minimum basic salary.