Some people call President Ranil Wickremesinghe a strong capitalist in this country. In the post-independence period, both the left and the right wing political parties had gained a strong position in the country. The first opposition leader in Sri Lanka’s post- independence era was the Lanka Sama Samaja Party leader Dr. N.M. Perera.
The trade union movement in the country was also led by left-wing political parties. Even so, everyone has to admit that the significant contribution to bring the salary level of the public servants in this country to the current state was not given by the left wing movement, but by Wickremesinghe, who is called an ardent capitalist by the left wing.
In early 2015, the good governance Government under which Wickremesinghe was the Prime Minister, presented an interim budget proposal to Parliament. One of its proposals was to raise salaries of all public servants by Rs.10,000 and it was implemented making a record as it was the highest salary hike given to public servants in the country’s history. That’s how the ardent capitalist increased the wages of State employees, including labourers.
However, that salary increment was initially given as an allowance and there was no change in the basic salary or other allowances paid on the basis of this basic payment. The then Prime Minister Wickremesinghe made a special statement in Parliament on December 14, 2015 stating that the increased allowance of Rs.10,000 would be added to the basic salary in several phases from 2016 onwards. Accordingly, related circulars were issued and Rs.10,000 was added to the basic salary in several stages over the next five years. As a result, the salary of public sector employees increased significantly.
The last stage of this wage hike was completed in 2020 increasing the salaries of public sector employees drastically. The basic salary of an office assistant was Rs.11,730 on December 31, 2015 but it was increased to Rs.24,250 from January 1, 2020. Due to this salary hike, the basic salary of an office assistant had increased by Rs.12,920. Likewise, the basic salary of all other public sector employees increased, making an increase in their gross monthly salary as well. It was the first revolution that Wickremesinghe made with regard to salaries in the public sector.
Before the salary increment, the basic salary of a newly appointed officer in the Sri Lanka Administrative Service was Rs.22,935 but with the salary increments made under the recommendation of Wickremesinghe, this officer can fetch a monthly salary of Rs.47,615 from January 1, 2020.
Government employees
His salary had increased by Rs.24,680. In this way, the salaries of all public sector officials, including management, technical services, and administrative services, from minor Government employees, have increased by more than half of their salaries. This is an opportunity given for the first time for the public sector employees to meet their expenses while retaining a significant portion of their salaries as savings. The living standards of these employees have significantly improved thanks to the steps taken by Wickremesinghe to introduce this salary hike.
As the Presidential Election is around the corner, there were various forms of trade union actions launched with the aim of getting salary hikes and other increments in the public sector. This phenomenon is common in Sri Lanka when elections are around the corner.
But President Wickremesinghe clearly stated that there were no finances for salary increments at this juncture and special policies cannot be adopted for each Government institution. Therefore, it was decided in the Cabinet meeting held on May 27, 2024 to appoint an expert committee to review the existing wage disparities in all services in the public sector and submit proposals to resolve them.
According to the recommendations made by the said committee, the Government announced that the salary increments of public sector employees will be implemented through the 2025 Budget. A senior administrative officer and former President’s Secretary Udaya Seneviratne was appointed as the Chairman of the expert committee and Vernon Perera, the Additional Secretary to the President, was appointed as the Secretary of this expert committee.
Many people thought that this committee was also just appointed as usual to end the protests by the trade unions. They also believed that appointing this committee was another gimmick by the Government to delay solutions to the grievances of the public sector rather than providing solutions.
Cabinet
Nevertheless, the committee led by Seneviratne submitted its report in less than two and a half months. The Cabinet under the Chairmanship of President Wickremesinghe accepted the proposal and gave approval for its implementation through the 2025 budget proposals. The recommendations will be implemented from January 1, 2025. Accordingly, Sri Lanka’s ardent capitalist has paved the way for increasing the salaries of the country’s public servants for the second time.
According to the salary revision to be implemented from January 1, 2025, an allowance of Rs.25, 000, after adding all living expenses allowances, will be given to public sector employees. At the same time, the basic salary will be increased by 24 percent to 35 percent.
The basic salary of an employee who is currently receiving a basic salary of Rs.24,250 will be increased to Rs.30,000. When the cost of living of Rs.25,000 is added to it, the gross salary of the lowest public sector employee increases to Rs.55,000.
In this way, the salaries of all public sector employees will be increased between 24 percent and 35 percent. It is clear from this that Wickremesinghe has once again made a significant contribution with regard to the salaries of the public sector employees.
It seems that the above committee has also solved several other problems affecting public sector employees. Government officials, who have retired before the year 2020, have been given salary increments to which they were entitled and their pensions have been revised and related discrepancies have been resolved.
Apart from this, the living expense allowance paid to pensioners has also been approved to be equal to 50 percent of the living expense allowance given to active public sector employees from January 2025.
According to the proposal to increase salaries for the public sector employees introduced by Wickremesinghe in 2015 and 2016, the salary of the lowest paid public servant was increased from Rs.11,750 to Rs.24,250. According to this year’s proposals, the salary will increase to Rs.55,000 from January 1, 2025.
All public sector employees will also be included in an insurance scheme. In this way, apart from removing the disparity in salaries of the public service and pensioners, the salary of the lowest paid public employee will increase to Rs.55,000 while the salaries of all public sector employees will increase by 24 percent to 30 percent.
