INSUBCONTINENT EXCLUSIVE:

The Deputy Minister of Labour Mahinda Jayasinghe today provided a clarification with regard to the process of salary increments to the

public sector employees scheduled to be implemented as per the 2025 Budget proposals.Speaking during the second reading debate of the 2025

Budget in the Parliament today (18), the Deputy Minister expressed that certain individuals are misleading the public regarding the increase

service, PL 1, will receive an increment of Rs

5,975.While explaining the process of salary increments to Grama Niladharis and doctors, the Deputy Minister said 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

15,750

We have said it

Currently, two types of allowances are given to public servants

One is the Cost of Living allowance of Rs

17,800 and two other allowances of Rs

7,500 which were increased in the past - Rs

5,000 and Rs

2,500

Here, this Rs

7,500 is included into that salary increase of Rs

15,750.When the basic is increased by Rs

15,750, there is Rs

7,500 and the new part

Harsha de Silva mentioned only this PL 1 salary

He did not talk about other salaries.Therefore, Rs

5,000 and Rs

975 of the remaining Rs

3,250 will increase this year

Then, the minimum salary of the PL 1 category in the public service will increase by Rs

5,975.Also, the annual salary increment of everyone in the public service will increase by 80%

The minimum annual salary increment of Rs

250 will increase by 80% up to Rs

450

Similarly, salaries in other categories will also increase.The current salary of the Grama Niladhari Service GN - 1 - Rs

28,940 will become 56,630 within three years

Also, do not forget that the Cost of Living allowance of Rs

17,500 will be added to the basic of Rs

40,000 in the same way

Then the gross increase will be Rs

21,690

When Rs

17,500 is removed from there, the net increase will be Rs

14,190

That means that the salary of a Grama Niladhari today will increase by Rs

9,257.At the moment, the salary of a doctor (MO) joining the medical service is Rs

54,290

It increases the basic to Rs

91,750

Then, if his gross increase is Rs

37,460 and Rs

7,500 are subtracted, it will be 30% of Rs

29,960

All government employees will receive 30% of the remaining 30% after deducting Rs

7,500 from the gross increase from April 1 of this year

Then, the salary of a doctor will increase by Rs

13,988.Now, the hourly rate is Rs

687

With this new salary increase, the OT for a newly joining medical officer will be Rs

Budget Speech is as follows;Public Service Salary IncreaseGiven that nearly a decade has passed since the last basic salary revision, it is

now time to revise the salary structure having evaluated all factors in a holistic manner

It is necessary to provide a decent living standard for public sector employees, enabling the Government to attract talent and skilled

salary from Rs.24,250 to Rs.40,000 by Rs.15,750

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

minimum salary.The proposed minimum monthly basic salary increase of Rs

15,750 will also be applicable to judicial services, public corporations, statutory boards, university staff, and officers of tri-forces on

the same basis in line with the minimum basic salary increase for public sector employees.In addition to a minimum monthly basic salary

salary increment of Rs

250 will be increased to Rs

450

It is also proposed to adjust annual salary increments for all public sector employees to the same percentage.The total estimated cost of

this salary increase is expected to be Rs.325 billion

Considering present fiscal constraints, it is proposed that this salary increase be implemented in phases

Of the total net salary increase, Rs.5,000 and 30 percent of the balance amount will be paid starting from April 2025, with the remaining 70

percent being paid in equal portions beginning in January 2026 and January 2027.Therefore, it is proposed that Rs.110 billion be allocated

on or after 01.01

2025be calculated based on the new salary structure, ensuring that they receive retirement benefits under the proposed 2025 salary

scheme.Considering the increase in the minimum basic salary of state employees, the limit on distress loans for public servants which is

currently set at Rs

250,000 will also be increased to Rs

400,000

Further details of the salary increase are given in the Technical Note in Annexure V.

Deputy Minister offers clarification on public sector salary hike