Did the government increase the salaries of state employees from 20,000 LKR?

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The NPP government presented its first budget to the parliament yesterday (February 17 ). Social media users are actively discussing the budget. However, some of their discussions are misleading. This is our investigation into such a scenario.

Social Media Posts 

Social media posts being spread stating the government has proposed a salary increment of state employees from 20,000 LKR in their first budget, presented on February  17^th (Yesterday) 

FB | Archived 

We noted some other posts also being spread. 

FB | Archived 

We decided to do a fact-check on this.

Fact Check 

The president, Anura Kumara Dissanayake, delivered the 79th budget speech of independent Sri Lanka yesterday (17^th February) at the parliament.

In his budget speech, President AKD stated that the minimum salary of a state employee would be increased from Rs.24250 to 40,000, an increment of 15750 LKR.

The president`s budget speech about state sector salaries can be watched  below.

A few excerpts of the president`s speech regarding state sector salary increments can be referred to below.

Nearly a decade has passed since the last essential salary revision, and it is now time to revise the salary structure, having evaluated all factors holistically. It is necessary to provide a decent living standard for public sector employees, enabling the government to attract talent and skilled workers while avoiding an excessive burden on the budget. Accordingly, we propose to increase the minimum monthly basic 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 wage, 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 apply 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. 50 In addition to a minimum monthly basic salary increase of Rs.15,750, it is proposed that the value of the annual salary increase be increased by 80 per cent. Consequently, the minimum annual salary increment of Rs. 250 will be increased to Rs. 450. It is also proposed that yearly salary increments for all public sector employees be adjusted to the same percentage. 

The 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 per cent of the balance amount will be paid to start from April 2025, with the remaining 70 per cent being paid in equal portions beginning in January 2026 and January 2027. Therefore, it is proposed that Rs.110 billion be allocated for the proposed salary increase in 2025. As part of this salary increase, it is proposed that the retirement benefits for officers retiring on or after 01.01. 2025 be calculated based on the new salary structure, ensuring that they receive retirement benefits under the proposed 2025 salary scheme.

Above are the extracts from the president`s speech. In budget proposals, the government suggests increasing the basic salary of employees by adding  already prevailing temporary interim allowances(ad-hoc) ,special allowances and newly increasing salaries . So, the net increment of basic salary would be 8250 LKR.

How will state sector employees’ salaries be increased per budget proposals?

The government describes this procedure in the Annexure 5 document attached to the budget proposal. As per it, Rs.5000 of net increment will be added to the basic salary from April 2025, and 30% of the remaining will be added. 70% of the remaining will be added in 2026 and 2027.

Below are examples of how the net salary increments will happen to various salary levels.

It`s clear that social media posts claiming a 20,000 LKR Salary increment for all state sector employees are false. The increment will depend on the employees’ salary levels. 

However, before the budget, state employee unions requested a 20,000 LKR salary increment for all state sector employees. Media reports about such requests can be found here and here.

Under former president Wickremesinghe, the Udaya R Senewirathna committee was appointed to solve the salary anomalies of state sector employees. They released a special report and suggested salary increments for state sector employees. Below are a few articles written about it.

A salary increments in 10 professions from January 1st, 2025?

ඡන්ද කාලයේදී රාජ්‍ය සේවක වැටුප් වැඩි කිරීමට කැබිනට් අනුමැතිය ලැබුනද?

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Conclusion

As per our investigation, we were able to find out that a 20,000 LKR salary increment for all state employees will not occur, and the 15,750 basic salary increment to the lowest salary level will happen with the addition of already prevailing allowances.Net salary increment for the lowest wage earners will be 8250 LKR. However, it also occurs in three phases. Salaries of other salary levels will be increased as per their current salaries.