The Presidential Media Division (PMD) has issued a statement clarifying that reports suggesting the Cabinet has not approved the upcoming state employee salary increase, effective from January, are false. The statement confirms that Cabinet approval for the salary increase has already been granted.
The statement is as follows:
According to the Cabinet decision 24/Misc (020) dated May 27, 2024, a special committee was appointed to study salary discrepancies among various employee groups within the public service and to recommend the necessary revisions for inclusion in the 2025 budget proposals. The aim is to ensure that all sectors of the public service receive the required salary, wage, and remuneration adjustments.
The special committee held discussions with 81 major trade unions and public officers, analyzing relevant data, and has prepared an interim report. Udaya R. Seneviratne clarified that the committee obtained input from 391 other trade unions, organizations, institutions, and individuals while compiling the report.
Considering the existing financial constraints and the challenges faced by public sector employees, the interim report recommends a policy framework to restructure current salary structures and minimize public expenditure, while also proposing strategies to increase revenue. These proposals were aimed at reducing wage disparities and improving fiscal management.
Subsequently, on August 12, 2024, President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization, and National Policies, submitted a Cabinet paper titled “Interim Report of the Special Committee Appointed to Address Wage Disparities in the Public Service” (Cabinet Paper No. 24/1609/601/097).
After review and discussion by the Cabinet, policy approval was granted to implement the recommendations listed in paragraphs 3.1 to 3.18 of the interim report. These recommendations will also be included in the 2025 budget for implementation.
Key recommendations include:
- A monthly cost-of-living allowance of Rs. 25,000 to be paid to all government employees from 2025, with adjustments every three years.
- A 24% to 50%-60% increase in the minimum starting salary of public service employees, with the total gross salary, including the cost-of-living allowance, raised to Rs. 55,000. This adjustment will also be applied to other positions.
- Implementation of the new salary and allowance structure for all public institutions, excluding commercial state enterprises and banks.
- Revising the pensions of retired public servants who retired before 2020 to eliminate any disparities.
- From January 2025, retirees will receive a cost-of-living allowance amounting to 50% of the allowance provided to active government employees.
- The proposed salary structure will be implemented starting January 1, 2025, in phases, taking into account the country’s financial situation.
The final report of the special committee was submitted to the President on September 3, 2024. It includes recommendations on state employee classification, allowances, pension discrepancies, and other matters, which are set to be implemented from January 1, 2025. Policy approval has been granted to incorporate these recommendations into the 2025 budget proposals.
