The cost of living allowance of Rs. 2,500 being paid to public sector employees will be increased by a maximum of Rs.1,000 and a minimum of Rs. 375, with effect from the beginning of this month, the government announced yesterday.

Media Minister Anura Priyadharshana Yapa told the weekly Cabinet press briefing at the Information Department, that the Cabinet of Ministers decided on Thursday to revise the CoL allowance based on the outcome of talks between trade unions, representatives of the Cabinet and Ministries of Finance and Planning, Public Administration and Home Affairs.

"Employees who draw a monthly salary of less than Rs. 22,935 will now receive a total CoL allowance of Rs. 3,500, while those with a salary of more than Rs. 22,935 would be given Rs. 2,875."

He said that employees of Corporations, Statutory Boards and fully owned Government Companies, which do not pay a variable cost of living or similar allowance linked to the cost of living index under Management Services Circular No. 30, will also be entitled to the CoL allowance, on the basis approved for public sector employees.

A Memorandum submitted by the Ministry of Defence, Public Security and Law and Order to grant pension status to retired or demised Reserve Police Service officers with 15 years active service, also received Cabinet approval, Yapa said.