Govt 2011 bonanza for State employees

Pensioners too benefited:

Special attention on intellectuals:

By Ananda KANNANGARA

Public Administration and Home Affairs Minister W.D.J. Seneviratne

State employees from the minor categories to the executive grades will receive a substantial salary increase from the January 2011 remuneration packages, which will also be a good sign for the public sector workers who have been expecting a salary increase for the past several months.

In an interview with the Sunday Observer, Co-Chairman, National Salaries and Cadres Commission, M.N. Junaid said that the five percent salary hike was approved by the Government to all public sector employees with effect from January this year, thus incurring an additional Rs. 50 billion expenditure on the exchequer.

He said the salaries of most public servants will increase by Rs. 1,500 and will include the Cost of Living (COL) allowance of Rs. 600 as well.

The following are excerpts of the interview:

Q: Many State employees still do not know how to calculate the salary increase. Could you explain?

A:Salaries are calculated according to the basic salary of each employee. For example, if an employee draws a sum of Rs. 14,000 as basic salary, the employee will have to first calculate five percent of Rs. 14,000.

It will be Rs. 700. This amount will be added to the already increased COL amount of Rs. 600. Then the monthly salary of the employee will increase by Rs. 1,300 from January(see table 1).

Q: Why do University academic staffers get substantial salary increases when compared to other categories?

A: Normally every Government pays special salary increments to intellectuals, considering their academic qualifications. The present Government too has focused special attention on intellectuals with the objective of blocking the most important problem , the ‘brain drain’. If intellectuals are not paid well they seek employment overseas(see table 2).

Q: What about the COL allowances for executive level officers?

A: Unlike other public sector employees, all executive level officers will receive their COL allowances from July onwards.

Q: What about increases for pensioners?

A: According to the salary structure of public servants, over 450,000 pensioners too will receive a substantial increase of Rs. 300 from this month, but those who retired before January 1, 2004 will receive an additional sum of Rs. 450 from July this year. This is also the first time ever a fair salary increase has been given to pensioners.

Public Administration and Home Affairs Minister W.D.J. Seneviratne thanked the Government for approving the five percent salary increase and said that there will be another increase after the finalisation of salary anomalies.

In addition, Rs. 300 will also be added to the salaries of pensioners and those who had retired from service before January 2004 will receive a sum of Rs. 450 from July this year.

Minister Seneviratne also said the Government has to spend a huge sum of money on this salary increase while carrying out massive development programs in the country.