LNP – Public sector salary increase: Minimum basic salary raised by Rs. 15,750

The government has proposed a revision to the public sector salary structure as part of the 2025 Budget, improving the minimum wages and streamlining the allowances. Â

Presenting the 2025 budget proposals, President Anura Kumara Dissanayake said that the minimum basic salary in the public sector will be increased by Rs. 15,750, raising it from Rs. 24,250 to Rs. 40,000.Â

This adjustment will benefit employees across various sectors, including judicial services, state corporations, statutory boards, university staff, and tri-service officers. Â

In addition, the existing ad-hoc interim allowance and special allowance will be consolidated into the basic salary, along with a net increase of Rs. 8,250 in the basic minimum wage.Â

Under this revision, the minimum increment of Rs. 250 will rise to Rs. 450, while the increment of Rs. 500 will increase to Rs. 900. Â

The total estimated cost for implementing this salary revision is Rs. 325 billion, with an initial allocation of Rs. 110 billion in 2025.Â

The salary increase will be implemented in phases, starting with a Rs. 5,000 net salary increase and 30% of the adjustment in April 2025. The remaining 70% will be disbursed in equal parts in January 2026 and 2027, the President highlighted.

Meanwhile, President Dissanayake also revealed plans to address critical workforce shortages in the public sector by recruiting 30,000 new employees for essential vacancies. To facilitate this recruitment, Rs. 10 billion has been allocated in the 2025 Budget. Â