By unusuma.lk on (LK time)
The Deputy Minister of Labour, Mahinda Jayasinghe, today provided a clarification regarding the process of salary increments for public sector employees, as proposed in the 2025 Budget.
Speaking during the second reading debate of the 2025 Budget in Parliament on February 18, the Deputy Minister stated that some individuals are providing misleading information about the government employees’ salary increases.
Jayasinghe explained that employees at the lowest level of the public service, PL 1, will see a salary increase of Rs. 5,975.
Explaining the salary increments for Grama Niladharis and doctors, the Deputy Minister mentioned that Rs. 7,500 from the gross salary increase will be deducted, and 30% of the remaining amount will be added to the basic salary of all government employees starting April 01.
“We have been transparent about the basic salary increase of Rs. 15,750. We have clearly stated this. Currently, two allowances are provided to public servants: a Cost of Living allowance of Rs. 17,800 and two additional allowances of Rs. 7,500 (Rs. 5,000 and Rs. 2,500) that were raised previously. The Rs. 7,500 is included in the salary increase of Rs. 15,750.
When the basic salary increases by Rs. 15,750, there is the Rs. 7,500 and the new part. Harsha de Silva mentioned only the PL 1 salary but did not refer to other salary categories.”
Thus, Rs. 5,000 and Rs. 975 of the remaining Rs. 3,250 will be added this year. As a result, the minimum salary of PL 1 employees will rise by Rs. 5,975.
Additionally, the annual salary increment for all public servants will increase by 80%. The minimum annual increment of Rs. 250 will rise by 80% to Rs. 450. Salaries in other categories will also see an increase.
The current salary for a Grama Niladhari Service GN – 1 – is Rs. 28,940, and within three years, it will reach Rs. 56,630. The Cost of Living allowance of Rs. 17,500 will be added to the basic salary of Rs. 40,000 in the same manner. The gross increase will be Rs. 21,690. After removing Rs. 17,500, the net increase will be Rs. 14,190. Therefore, the salary of a Grama Niladhari will increase by Rs. 9,257.
Currently, the salary for a newly joining medical officer (MO) is Rs. 54,290, and after the basic salary increase to Rs. 91,750, their gross increase will be Rs. 37,460. After deducting Rs. 7,500, 30% of the remaining Rs. 29,960 will be added. This means a doctor’s salary will increase by Rs. 13,988.
With this new salary structure, the hourly rate will be Rs. 764, up from Rs. 687 for a newly joining medical officer.
These salary adjustments are scheduled to be implemented from April 1, 2025, benefiting all government employees, with structured increments based on their respective salary scales.
The President’s remarks on the public sector salary increases during the Budget Speech on February 17 are as follows:
Public Service Salary Increase
Having passed nearly a decade since the last basic salary revision, it is now time to restructure salaries, considering all factors in a comprehensive manner. This revision aims to provide a decent standard of living for public sector employees while enabling the government to attract skilled workers, without placing an excessive burden on the budget.
Thus, the proposal is to raise the minimum monthly basic salary from Rs. 24,250 to Rs. 40,000, an increase of Rs. 15,750. The current interim allowances and special allowances will be incorporated into the basic salary, resulting in a net increase of Rs. 8,250 in the minimum salary.
The Rs. 15,750 basic salary increase will also apply to judicial services, public corporations, statutory boards, university staff, and officers of the tri-forces.
In addition to the basic salary increase, the value of the annual salary increment will rise by 80%. Consequently, the minimum annual increment of Rs. 250 will be raised to Rs. 450, and the same percentage increase will be applied across all public sector employees.
The total cost of this salary increase is expected to be Rs. 325 billion. Due to fiscal constraints, this increase will be implemented in phases. Rs. 5,000 and 30% of the remaining amount will be paid starting April 2025, with the remaining 70% being paid in equal portions in January 2026 and January 2027.
Therefore, Rs. 110 billion has been allocated for the proposed salary increase in 2025.
Additionally, the 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 2025 scheme.
Furthermore, the limit on distress loans for public servants, currently set at Rs. 250,000, will be raised to Rs. 400,000.
