La CSG Income Allowance maintenue

Cabinet has taken note of the outcome of the Tripartite Committee Meeting on salary compensation for the year 2024 held on 07 December 2023. In view of the current situation and to restore the purchasing power of employees, the Tripartite Committee proposed a monthly salary compensation of 10% of basic salary, with a minimum of Rs1,500 and a maximum of Rs2,000. Some 110,000 employees in the public sector and 350,000 employees in the private sector would benefit from the salary compensation.

The monthly CSG Income Allowance of Rs2,000 for all employees earning up to Rs25,000 and Rs1,000 for those earning above Rs25,000 up to Rs50,000 would be maintained.

In order to support enterprises that are facing difficulties to maintain their productive capacity, Government would meet the cost of salary compensation for:
(a) Small and Medium Enterprises with a turnover of up to Rs100 million;
(b) manufacturing enterprises in the export sector, in addition to the existing support being provided; and
(c) manufacturing enterprises catering for the local market.

Government would also meet the cost of salary compensation for registered Non-Governmental Organisations.