Day: 2nd December 2021

The Minister of Finance, Economic Planning and Development would make the Social Contribution and Social Benefits (Contributions by Public Sector Employees) Regulations 2021 and the Income Tax (Amendment of Schedule) Regulations 2021. Following the implementation of the 2021 Report of the Pay Research Bureau and with a view to putting at par public sector employees with private sector employees, public sector employees would pay as from November 2021, their share of social contribution as follows – (a) 1.5 percent on basic salary not exceeding Rs50,000 per month; and (b) 3.0 percent on basic salary exceeding Rs50,000 per month. The Social Contribution and Social Benefits (Contributions by Public Sector Employees) Regulations would bring the appropriate legislative amendments to implement this decision. The Regulations also make provision for employees of a statutory body which does not fall under the Pay Research Bureau to start paying their share of social contribution as from the date a salary review exercise becomes effective after November 2021. The Income Tax (Amendment of Schedule) Regulations 2021 provides for an allowance equivalent to the amount payable by the employee as social contribution, received by an employee from his/her employer to be exempt from income