Public sector salary increase guaranteed

Cost-of-living allowance of Rs. 25,000 per month:
Cabinet approval already obtained:

Transport, Highways and Mass Media Minister and Cabinet Spokesperson Dr. Bandula Gunawardhana refuted claims that the Cabinet had not approved the proposed salary increase for public sector employees scheduled for 2025, calling these reports false.

Speaking at the Cabinet decision press briefing held yesterday (10) at the Government Information Department, Minister Gunawardhana clarified that the necessary approval had already been obtained. He further stated that President Ranil Wickremesinghe, who also serves as the Minister of Finance, Economic Stabilization, and National Policies, had submitted the relevant Cabinet memorandum on August 12, 2024.

The Minister urged everyone to verify the facts and disseminate accurate information rather than misleading the public with incorrect news when discussing sensitive matters. According to Cabinet Decision No. 24/Misc (020) dated May 27, 2024, a special committee had been appointed to study and propose amendments to address wage disparities among various groups in the public sector and to incorporate these recommendations into the 2025 budget proposals.

Minister Gunawardena further explained that this special committee had engaged in discussions with 81 major trade unions in the public sector and 391 other organizations, institutions, and individuals, and prepared an interim report after analyzing the relevant data. The interim report also recommended policy frameworks to revise existing salary structures, reduce state expenditure, and increase revenue generation, considering the current fiscal constraints and the challenges faced by public sector employees.

The Minister emphasized that President Ranil Wickremesinghe had submitted the Cabinet memorandum, titled “Interim Report of the Expert Committee Appointed to Address Salary Disparities in the Public Sector,” (Cabinet Paper No. 24/1609/601/097), on August 12, 2024. The Cabinet had reviewed and approved the interim report and authorized the implementation of its recommendations, which include incorporating them into the 2025 budget.

The approved recommendations, effective January 1, 2025, include the payment of a cost-of-living allowance of Rs. 25,000 per month to all public sector employees, to be reviewed every three years; increasing the minimum monthly starting salary in the public sector by a range of 24% to 50%-60%; setting the gross salary at Rs. 55,000, inclusive of the cost-of-living allowance, and aligning the basic salary of all other positions accordingly. The new salary and allowance mechanism will apply to all public institutions except for state-owned enterprises and banks.

Additionally, the recommendations propose adjusting the pensions of retired public servants by providing the previously granted salary increment to those who retired before 2020, granting a cost-of-living allowance to retirees equivalent to 50% of the allowance given to active public officials starting January 2025, and managing these expenses within the existing tax policies. The salary system is set to be implemented in stages, considering the fiscal space starting from January 1, 2025.

Minister Gunawardena also mentioned that the special committee submitted its final report to the President on September 3, 2024, and that the recommendations from sections 1 to 8 of the report have been approved for implementation from January 1, 2025, and incorporated into the 2025 budget proposals.

Re-affirming the Cabinet’s commitment to these measures, the Minister reiterated: “I present these facts as the Cabinet Spokesperson, with notes prepared by the Cabinet Secretary. Any misleading information concerning the salary increase is baseless. The President and the Cabinet decided to address these wage disparities by appointing a committee, which submitted an interim report to the Cabinet, and this report has now been approved.”

He concluded by stating that these measures are transparent and available for public scrutiny, emphasising that any individual can request a copy of the documents to verify the information.

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