The Ministry of Public Administration has issued a circular detailing revisions to the Cost of Living (CoL) allowance and recovery contributions to the Widows' and Orphans' Pensions Fund for public service employees. The adjustments align with proposals outlined in the 2024 Budget.
According to the circular, public officers will receive an increased CoL allowance of Rs. 12,800 per month from January to March, with an additional Rs. 5,000 supplementing the existing Rs. 7,800. Subsequently, starting April, the CoL allowance will see a further increment of Rs. 5,000, bringing the total monthly payment to Rs. 17,800.
President Ranil Wickremesinghe's 2024 Budget proposed an additional Rs. 10,000 for state sector employees as the CoL allowance. The circular outlines plans to settle the arrears of CoL allowance between January and March 2025, disbursing Rs. 5,000 per month for the accumulated amounts from January-March 2024.
Furthermore, the circular highlights that state sector employees on a casual or daily wage basis will also receive a CoL allowance. This allowance, calculated at 1/30th per day based on the number of days worked in each month, is provided in addition to the existing Rs. 260 allowance. The move reflects an effort to address the financial concerns of a broad spectrum of public service workers.
