President Ranil Wickremesinghe announced that the W&OP pension scheme contribution will be increased to 8% for all service categories from April 2024 onward.
This is to ensure the continuity of the pension scheme for widows, widowers, and orphans.
The current contribution rate is 6-7% of basic salary.
The government spends Rs. 65 billion annually for the payment of the scheme, while the total annual contribution from employees is only Rs. 38 billion.
The increase in contribution is necessary to ensure the long-term sustainability of the scheme. With the adjustment, an additional Rs. 9 billion can be collected annually.