Circular issued on revision of Cost of Living allowance for public officers

A public administration circular has been issued on the revision of the Cost of Living (CoL) allowance and recovery contributions to the Widows’/Widowers’ and Orphans’ Pensions Fund in the public service.

The communiqué, published by the Ministry of Public Administration, reads that revisions to the relevant payments are being made pursuant to the proposals outlined in the 2024 Budget.

As such, Rs. 12,800 will be paid to the public officers per month as CoL allowance from January to March, by adding Rs. 5,000 to the current amount of Rs. 7,800.

Subsequently, another Rs. 5,000 will be added to the CoL allowance starting April, increasing the total payment to Rs. 17,800.

In the 2024 Budget, President Ranil Wickremesinghe had proposed to pay an additional Rs. 10,000 to the state sector employees, as the CoL allowance.

According to the circular, the payment of arrears of CoL allowance are to be completed between January and March 2025 by paying Rs. 5,000 per month, which were accumulated in January-March 2024.

Meanwhile, the state sector employees on casual basis or daily wages will also receive a CoL allowance, which is calculated on the basis of 1/30th per day based on the number of day they have worked in each month. This is paid in addition to the allowance of Rs. 260 they receive at present.

Additionally, apprentices and trainees, members of the three armed forces, and approved personal staff of the 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 be paid a CoL allowance.

For pensioners, the CoL allowance will be increased from Rs. 3,525 to Rs. 6,025 with effect from April 2024.

Further, 8% of the salary will be deducted from the public officers as contribution to the Widows’/Widowers’ and Orphans’ Pensions starting April 2024.