The terms and regulations of the Voluntary Retirement Scheme (VRS) under the Sri Lanka Electricity Act, No. 36 of 2024 have been published through an Extraordinary Gazette notification, issued under the signature of Minister of Energy Kumara Jayakodi.
The regulations, made in line with Paragraph (f) of Subsection (3) of Section 18 of the Act, outline the compensation structure and eligibility criteria for employees of the Ceylon Electricity Board (CEB) opting for voluntary retirement.
According to the gazette:
• Permanent cadre employees with ten years or more of service will receive:
- Two months’ salary for every completed year of past service, and
- 1.5 months’ salary for every year of service foregone.
• Permanent cadre employees with less than ten years of service will receive:
- Five months’ salary for every completed year of past service, and
- No compensation for service foregone.
• The compensation is subject to a minimum limit of Rs. 900,000 and a maximum of Rs. 5 million.
• Employees not in the permanent cadre, excluding those on contractual agreements, will be entitled to:
- Two months’ salary for every completed year of past service,
- A minimum compensation of twelve months’ salary, calculated on the basis of (22 × daily wage × number of months).
The regulations also stipulate that compensation will be calculated based on the monthly salary used to determine Provident Fund contributions at the time of retirement, excluding interim or other allowances.
Additionally, all statutory payments will be made in accordance with relevant laws, while employees facing disciplinary inquiries or tribunal cases will be ineligible for the scheme. Any outstanding dues from employees will be deducted from the compensation.
Further, employees who retire under this VRS and receive compensation will not be eligible for employment in any successor company under any circumstances.
