Bigger bonus for State employees

Cabinet approval has been given to proposals to increase the year-end bonus paid to State sector employees by 25 percent this year. Employees of State institutions, corporations and Government-owned companies will get 25 percent more than last year's bonus.

Accordingly, employees of public corporations and fully State-owned companies that have registered profits in the financial year will receive Rs. 12,500 as a bonus, if they get no other incentives. They received Rs. 10,000 as bonus last year. Also, for those who receive such incentives, payments will average between Rs. 9,375 and Rs. 9,500 depending on their attendance and performance. They were paid Rs. 7,500 as bonus last year.

Employees of institutions which have minimised their losses compared to the losses of 2012 will be entitled to an allowance of Rs. 2,500 while employees of State-owned corporations and companies which have made losses will receive a flat amount of Rs 1,000, as is the current practice.

The measure was proposed to the Cabinet by President Mahinda Rajapaksa in his capacity as Finance Minister and is aimed at increasing the productivity of State institutions.

In addition to the bonus increase, the employees will also receive a cost of living allowance of Rs. 1,200 allocated in the Budget 2014.