In a recent development, a public administration circular has been issued regarding the revision of the Cost of Living (CoL) allowance and recovery contributions to the Widows’/Widowers’ and Orphans’ Pensions Fund within the public service. The official communication, released by the Ministry of Public Administration, outlines adjustments to pertinent payments in accordance with the proposals presented in the 2024 Budget.
Effective from January to March, public officers will receive an increased CoL allowance of Rs. 12,800 per month, reflecting a notable addition of Rs. 5,000 to the existing amount of Rs. 7,800. Subsequently, commencing April, an additional Rs. 5,000 will be incorporated, bringing the total monthly payment to Rs. 17,800.
In the 2024 Budget, President Ranil Wickremesinghe advocated for an extra Rs. 10,000 to be allocated as the CoL allowance for state sector employees.
The circular stipulates that the disbursement of arrears for the CoL allowance is scheduled to be completed between January and March 2025, with a monthly payment of Rs. 5,000, covering the accrued amounts from January to March 2024.
Furthermore, state sector employees engaged on a casual basis or daily wages will receive a CoL allowance, calculated on a daily basis (1/30th per day) corresponding to the number of days worked each month. This supplement is provided in addition to the current allowance of Rs. 260.
Additionally, apprentices, trainees, members of the three armed forces, and approved personal staff of ministers, state ministers, deputy ministers, members of parliament, governors, chief ministers, provincial council ministers, and coordinating secretaries of the secretaries of Cabinet ministers and provincial chief secretaries will also receive a CoL allowance.
For pensioners, the CoL allowance will witness an increase from Rs. 3,525 to Rs. 6,025, effective April 2024.
Consequently, starting April 2024, an 8% deduction from the salary of public officers will be directed towards the Widows’/Widowers’ and Orphans’ Pensions fund as a contribution.
