Govt Increases Disaster Loan Limit for Public Employees to Rs. 400,000
Aruna Shantha
10-May-2025 13:41:33
The Ministry of Public Administration, Provincial Councils and Local Government has issued a new circular announcing a revision to the disaster loan scheme for public sector employees. Effective from May 1, 2025, the maximum loan amount available under the scheme has been increased from Rs. 250,000 to Rs. 400,000.
The updated provision comes in response to the recent increase in the minimum basic salary of public servants, as outlined in the 2025 national budget. The circular has been officially circulated to Secretaries of Ministries, Provincial Chief Secretaries, and Heads of Departments to ensure timely implementation.
The Ministry stated that the move is aimed at providing better financial assistance to public servants affected by natural or other disasters, in keeping with rising living costs and salary adjustments.
This increase is expected to offer greater relief and support to government employees in times of hardship, reinforcing the government’s commitment to employee welfare and disaster resilience.
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