In a significant move, the Cabinet has approved comprehensive revisions to public sector salaries and operational procedures, following recommendations from the expert committee led by former presidential secretary Udaya Senaviratne. The changes will be incorporated into the 2025 budget and aim to enhance efficiency and attract skilled employees across all public service sectors.
The key proposals include:
- Classification of Posts: All public sector positions will be categorized into four main levels based on the Sri Lanka Qualification Framework (SLQF) and National Vocational Qualifications (NVQ). This system is designed to better match job duties and responsibilities with employee qualifications.
- Recruitment Procedures: Recruitment will be streamlined with formal competitive exams and interviews, guided by the Sri Lanka Eligibility Guide and National Professional Competency standards.
- Cost of Living Allowance (COLA): A new COLA of Rs. 25,000 per month will be introduced for all government employees, with adjustments every three years. The base year for this adjustment is set as 2025.
- Salary Increases: The minimum starting salary in the civil service will be raised to Rs. 55,000, representing an increase of at least 24%. Basic pay for other posts will be adjusted accordingly.
- Public Sector Workforce: The total number of public sector employees will be capped at 1,000,000 by 2030. This will be achieved through digitalization, automation, and E-Governance initiatives.
- Medical Insurance Scheme: From January 2025, a medical insurance scheme will cover all public sector employees and pensioners, with a minimum monthly contribution of Rs. 1,000.
- Efficiency Measures: Efforts will be made to reduce government expenditure through outsourcing where feasible and converting certain government entities into public limited companies listed on the stock market.
- Performance-Based Salary Increments: Employees will receive salary increments based on performance indicators, and pensioners will benefit from revised pensions and COLA adjustments.
These reforms are aimed at improving the efficiency of public services while managing costs within the existing tax framework, with implementation set to begin on January 1, 2025.