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Public Benefits – Budget Report

All new public sector employees will have to contribute towards their pensions from January 01.
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rnThe EPF style scheme envisages an 8 per cent contribution from employees and 10 per cent contribution from the state.rn

rnSalaries will be adjusted to conform to this.rn

rnMeanwhile the government is also planning to close down all redundant government bodies and or merge them where activities are duplicated.rn

rnVacancies will not be filled unless it could be conclusively shown that the post is necessary. rn

rnFinance Minister Chocksy said such position would be dissolved, if found to be redundant.rn

rnThe Tissa Devendra salary commission, which has recommended a salary hike, will also not be adopted because it requires a massive 30 per cent reduction in public servants.rn

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