2025 Salary Increase Was Approved By Cabinet, Says PMD

COLOMBO (News 1st); Reports claiming that the Cabinet has not yet approved the salary increase for public sector employees set to be implemented in 2025 are false and the necessary approval has already been granted.

The President's Media Division issued the following statement on Tuesday (10).

On May 27, 2024, under Cabinet Decision No. 24/Misc. (020), a study was initiated to address salary disparities among different public sector groups. 

A special committee was appointed to analyse salaries, wages, and other allowances across all public sector divisions to make necessary adjustments, which would then be included in the 2025 budget proposals. 

The expert committee has held discussions with 81 major trade unions and government officials in the public sector. Following these discussions and an analysis of the relevant information, an interim report has been prepared.

In this context, Udaya R. Senewiratne, the Chairman of the expert Committee clarified that while preparing this report, additional information was gathered from 391 trade unions, organizations, institutions, and individuals.

The interim report takes into account the existing fiscal constraints and challenges faced by public sector employees. It includes recommendations for revising the existing salary structures, along with measures to manage government spending more effectively. The report also proposes a policy framework that includes strategies for reducing government expenses and enhancing revenue generation, while implementing salary revisions based on established standards and benchmarks.

Accordingly, the Cabinet Paper No. 24/1609/601/097, titled “Interim Report of the Expert Committee Appointed to Address Salary Disparities in the Public Sector,” was communicated by the President and the Minister of Finance, Economic Stabilization, and National Policies on August 12, 2024.

Following a review and discussion of this interim report by the Cabinet, policy approval has been granted for the implementation of the recommendations specified in Sections 3.1 to 3.18 of the report. Additionally, these recommendations have been incorporated into the 2025 budget and approved for implementation.

For the year 2025, the following adjustments will be implemented for all government employees:

A monthly cost-of-living allowance of LKR 25,000 will be provided, subject to revision every three years.

The minimum starting monthly salary in the public sector will increase by 24% to a range of 50%–60%, with a total gross salary of LKR 55,000 including the cost-of-living allowance. Salaries for all other positions will be adjusted accordingly.

This new salary and allowance scheme will apply to all government institutions except for state-owned enterprises and banks.

Government pensioners who retired before 2020 will receive the salary increments to which they are entitled, with their pensions adjusted to eliminate existing disparities.

Starting from January 2025, pensioners will receive a cost-of-living allowance equivalent to 50% of the allowance provided to active government employees.

The Cabinet has authorized the gradual implementation of this salary structure, taking fiscal constraints into consideration, starting on January 1, 2025.

The expert committee submitted their final report to the President on September 3, 2024. This report, including recommendations numbered 01 to 08, addresses various aspects such as public sector classification, employee allowances, pension disparities, and recommendations regarding allowances and levies. The report has received policy approval for implementation starting January 1, 2025, and the recommendations have been included in the 2025 budget proposals.

Therefore, when disseminating such sensitive information, it is essential to avoid spreading misleading news and instead focus on verifying and communicating accurate details to the public.