The President's Media Division confirmed on Tuesday that the Cabinet has approved  salary increase for public sector employees set to be implemented in 2025, contrary to recent false reports suggesting otherwise.

On May 27, 2024, the Cabinet initiated a study to address salary disparities among public sector workers. A special committee, led by Udaya R. Senewiratne, was tasked with reviewing salaries, wages, and allowances. The committee engaged with 81 major trade unions and 391 other organizations, culminating in an interim report.

The Cabinet reviewed and approved the recommendations of this interim report on August 12, 2024, which were subsequently incorporated into the 2025 budget. Key changes include a monthly cost-of-living allowance of LKR 25,000 and a 24% increase in the minimum starting salary to LKR 55,000. The adjustments will affect all government employees, excluding those in state-owned enterprises and banks.

Additionally, pensions for retirees before 2020 will be adjusted to align with new salary standards, including a cost-of-living allowance of 50% of that given to active employees.

The new salary structure will be gradually implemented starting January 1, 2025.