Government Announces Major Salary Hike and Reforms for Public Servants Starting January 2025
August 23, Colombo (LNW): The government has announced significant reforms aimed at making the public service more attractive and efficient. Starting from January 2025, the basic salary of all government employees will be increased by an average of 24 to 50 percent. This move, aimed at forming an effective and productive public service, was approved by the Cabinet on August 12.
Udaya Seneviratne, Chairman of the Committee appointed to address salary-related issues for state servants, shared these details during a media briefing at the President Media Division yesterday. He stated that, with the committee’s proposals, government employees will benefit from attractive salaries and enhanced benefits beginning next year. The salary increases will be based on factors such as educational qualifications, experience, responsibilities, and the roles performed by public servants. The basic salary will be increased by at least 24 percent for the lowest grades, with overall increases ranging from 24 to 50 percent for all public servants. The adjustments will be phased in starting January 2025, with an average target of a 50 percent increase.
In addition to the salary hike, the government will maintain the cost of living allowance at Rs. 25,000 per month for up to three years starting in January 2025, considering inflation and other economic factors. This means the basic salary of the lowest state employee will be Rs. 30,000, bringing the total monthly salary, including the cost of living allowance, to Rs. 55,000.
Pensioners will also benefit from these reforms. From January 2025, they will receive a cost of living allowance of Rs. 12,500 each, and unpaid salary increments for those who retired before 2020 will be granted, with corresponding revisions to their pensions.
“The public service plays a crucial role in Sri Lanka’s development and is the driving force behind it,” Seneviratne emphasized. He added that a comprehensive recruitment scheme for state employees has been proposed to prioritize the necessary reconstructions to overcome challenges in the public service, create a productive work environment, provide excellent service to the public, and play a leading role in economic development.
In 2025, a scientific work study will be conducted in the public service to assess the number of employees required and to implement a scientific program for restructuring the public service. This will include introducing Key Performance Indicators (KPIs) for government employees for the first time. Salary increments will be based on performance, and incentives and non-financial benefits will be introduced.
Seneviratne noted that the government’s capital investment program for E-Governance will prioritize the digitization and automation of the public service, especially over the next three years starting in 2025. This initiative will begin with the Grama Niladhari’s office and will focus on institutions that generate government revenue and provide public services.
To reduce the livelihood burden on government employees, the “Agrahara Medical Insurance Scheme” will be restructured, maximizing benefits through a contribution of Rs. 1,000 per month from every government employee, including pensioners. The National Insurance Trust Fund, which implements the Agrahara scheme, will also work to modernize the national hospital system, providing special amenities for government employees in selected hospitals.
Amidst the current trend of Sri Lankans migrating for employment opportunities and higher education, Seneviratne highlighted the need to secure free higher education, provide legal and administrative independence to universities, and create opportunities for international students to study in Sri Lanka. This could turn Sri Lanka into a Centre for Knowledge, contributing to the country’s foreign exchange earnings.
