Government employees’ basic salary will increase by 24% to over 50% from next January

Chairman of the Expert Committee on Public Service Salary Disparities, Udaya R. Seneviratne said that the basic salary of public service employees will be increased by a minimum of 24% for primary-level service categories. For all government officials, salaries will gradually increase from an average of 24% to 50%, depending on current fiscal feasibility.

Mr. Seneviratne further said in light of prevailing inflation and economic conditions, a cost of living allowance of Rs. 25,000 will remain unchanged for three years and will be provided to all government employees for three consecutive years, starting from January 2025, with 2025 being considered the base year.

Mr. Udaya R. Seneviratne emphasized that regardless of which government is in power, there is a pressing need to increase the salaries of public servants. These proposals were made to address and eliminate salary disparities, taking into account past trade union protests within the public service. Accordingly, the proposals have received approval from both the Cabinet and the Treasury.

Chairman of the Expert Committee on Public Service Salary Disparities, Udaya R. Seneviratne shared these views during a press conference titled “Collective Path to a Stable Country” held today (22) at the Presidential Media Centre.

Mr. Seneviratne stated that the basic salary for the primary-level service category employees will be Rs. 30,000.00, with the total salary, including the cost of living allowance, amounting to Rs. 55,000.00.

Public service plays a vital role in the development of Sri Lanka and is also the driving force of development. The restructuring efforts are prioritized to address the current challenges in the public sector. The Presidential Expert Committee on Public Service Salary Disparities has presented a comprehensive program aimed at creating a satisfying work environment for public servants, delivering excellent service to the people, and positioning the public service as a key driver of economic development.

He also said that action will be taken to provide the cost of living allowance of Rs. 12,500 each for the pensioners from January 2025 and measures will also be taken to award the claimed salary increment for the government officials who retired prior to the year 2020 and revise their pension accordingly.

Further, action will be taken to provide benefit through the Budget 2025 in step wise based on the current fiscal viability.

To enhance the effectiveness and efficiency of the Public Service and provide exceptional service to the public, a scientific work study will be conducted in 2025. This study will inform a comprehensive program to restructure the Public Service as needed. A thorough assessment of the required number of employees will also be carried out based on this evaluation.

Appropriate performance indicators (KPIs) will be introduced for government employees, and a system for granting annual salary increments based on performance progress will be developed. Additionally, methods for providing incentives and other non-financial benefits based on performance will be implemented.

To enhance the quality of public service and ensure a distinctive government service for taxpayers under the current tax policy, a competitive recruitment system will be established. This system will be based on the Sri Lanka Qualification Framework (SLQF) and National Vocational Qualification (NVQ). This approach aims to ensure that qualified individuals are placed in appropriate roles, creating a more effective and efficient public service.

The government’s capital investment program for E-Governance will prioritize the digitization and automation of the Public Service, with a focus on incorporating technology in every possible aspect over the next three years, starting in 2025.

Special attention will be given to implementing E-Governance across government ministries and institutions, beginning with Grama Niladhari offices. This initiative aims to enhance the performance of revenue-generating institutions and those providing public services.

Over the next three years, efforts will be made to restructure identified public institutions from their traditional departmental model—dependent on the General Treasury for many years—into an innovative enterprise model.

These institutions will be transformed into Public Quoted Companies with a democratic governance structure, where ownership is divided as 30% government shares, 30% investor shares, 30% public shares through stock market listing, and 10% employee shares.

Government officials who are eligible for pensions and are assigned to these new institutions will have their pensions deferred until they reach age 60. They will receive other benefits during their service in these institutions.

Measures will be introduced to optimize the delivery of certain government services by outsourcing these services to external providers. This approach aims to reduce government expenditures and encourage private sector involvement. It will help avoid unnecessary recruitment in the Public Service and enable private providers to offer more effective services. As a result, economic services will be expanded.

To ease the financial burden on government employees, the Agrahara Medical Insurance Scheme will be restructured to lower their health expenses. The plan is to maximize benefits through the scheme, with each government employee, including pensioners, contributing Rs. 1,000 per month.

Additionally, the National Insurance Trust Fund, which administers the Agrahara scheme, will enhance medical services for government employees. This will involve modernizing the national hospital system and gradually upgrading selected government hospitals with special amenities for employees.

Due to the high demand for Sri Lankans abroad, many are migrating for employment and higher education, drawn by the country’s reputation for free education and skilled human resources. As a result, Sri Lanka loses valuable talent and significant foreign exchange is spent on overseas education. A large number of eligible students miss out on opportunities to study at state universities due to limitations in free higher education, forcing parents to cover high costs for private institutions and international universities. The trend of university students leaving the country is increasing due to insufficient economic benefits.

To address these issues, it is proposed to secure free higher education, grant legal and administrative independence to universities, and offer affordable courses by effectively utilizing physical and human resources. This will develop additional revenue streams and benefit all stakeholders. By improving this system and integrating with foreign universities and training institutions, Sri Lanka could become a Centre for Knowledge, expanding opportunities for international students to complete their education in Sri Lanka and becoming a leading sector for foreign exchange earnings.

Sri Lanka has achieved a notable position in health indicators due to its establishment of free health services, leading to increased international recognition for its healthcare services and professionals. However, the migration of health professionals is rising due to international demand. To address this, there is potential to transform Sri Lanka into a centre for internationally recognized health services by elevating the quality of free healthcare provided.

Strategies will be developed to deliver healthcare to both local and foreign communities efficiently and economically. This includes managing free healthcare facilities securely and introducing healthcare innovations that leverage existing physical and human resources.

Similarly, Ayurvedic medical services can be enhanced to generate economic benefits. It is proposed to capitalize on Sri Lanka’s potential to become a leading centre in healthcare-based tourism.