Public sector pensions to be revised under 3 phases

Delivering the 2025 Budget speech in Parliament today (17), President Anura Kumara Dissanayake proposed to revise the pensions of all pensioners who retired before 01 January 2020 in three phases, corresponding to the salary scales applicable to the year 2020 as per the Public Administration Circular No. 03/2016.

By considering salaries and benefits entitled to the pensioners, a monthly increase of Rs. 3,000 was implemented immediately after the Presidential election thus resolving the Pension Anomalies of Pensioners who retired before 01 January 2020.

However, the President expressed that a pension anomaly was observed which was created by revising the pensions of the government employees who retired from 2016 - 2020 only, based on the salary scale of the fifth phase related to the year 2020, since all the pensioners who retired till 31 December 2017 are on the same salary scale.

As this issue remains unresolved for a long time, the President said that the government believes it has to be resolved in a phased manner within the existing limited fiscal space. 

Accordingly, the President proposed as the first phase, the pensions of all pensioners who retired before 01 January 2018 to be revised in line with the third stage salary scales relevant to the year 2018 in the Public Administration Circular No. 03/2016 and to be implemented from July 2025. 

For this phase, the government has proposed to allocate Rs. 10,000 million through the Budget 2025.