Can government increase salaries by Rs. 2,500 a month?

 Today the strength of the public sector is 1,200,000. A salary increase of Rs 100 per month would cost Rs 1440 million per year, an increase of Rs. 500 per month would cost Rs 7200 million per year; a Rs 1000 per month increase would cost Rs 14,400 per year or 14.4 billion. At Rs. 2500, it would cost Rs 36,000 million or 36 billion per year.

(November 15, Colombo, Sri Lanka Guardian) Trade union and political party leaders are demanding that the salaries of Government servants be increased at least by Rs 2500 per month. Yet a trade union leader like Mr Lal Kantha is demanding an increase of Rs. 8000 per month. All are claiming the above amounts in view of the rise in the cost of living. Only the price of rice is within reach. Everything else has gone up in price.

Can the Government in power afford to increase the salaries at all in the present context, when there are massive ongoing development programs? At the same time, the public service had been expanded to encompass 1,200,000 workers. A salary increase means increasing taxes once again. It does not mean just an increase of taxes from high income earners. Taxes on commodities would also invariably go up. Once again, the people of the country will have to pay more for every item that they purchase.

Today the strength of the public sector is 1,200,000. A salary increase of Rs 100 per month would cost Rs 1440 million per year, an increase of Rs. 500 per month would cost Rs 7200 million per year; a Rs 1000 per month increase would cost Rs 14,400 per year or 14.4 billion. At Rs. 2500, it would cost Rs 36,000 million or 36 billion per year. In addition to the above direct additions to the salary, the cost would go up further due to increase in over time rates and subsistence etc. At the same time, the Govt. cannot ignore the pensioners. As of now it’s estimated that there are about 400,000 pensioners. A Rs 1000 increase per month would cost an additional Rs 4800 million or 4.8 billion per year in addition to the salary increases granted to the existing public sector employees.