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University Grants Commission - Sri Lanka

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Commission Circular No: 843

04th June  2004.


Vice-Chancellors of Universities,
Rectors of Campuses,
Directors of Institutes.



Your kind attention is invited to Establishments Circular Letter No. 03/2004 regarding the payment of a monthly advance of 10% of the basic salary or Rs. 1250 /- whichever is higher until the implementation of salary revision in 2004.

The Department of Management Services of the General Treasury has granted approval to revise the salary scales of the University Staff in terms of Management Services Circular No. 21 of 02.01.2004 with effect from 01.01.2004. The revised salary scales as approved by the Treasury are enclosed herewith.

The conversion of salaries of the employees should be done on step by step basis based on the salary step as at 31.12.2003. All Higher Educational Institutions/Institutes are requested to take steps to convert the salaries of University employees into the new salary scales using the relevant Conversion Tables annexed hereto (Annex I).

With the implementation of this circular;

(a) the new salary scales will replace the salary scales given in Commission Circular Nos. 755,801,823 and 833 as applicable.

(b) the payment made as an advance by Establishments Circular Letter No. 03/2004 should be suspended and recovered when new salaries are adjusted.
As mentioned in para 3 (c ) of Management Circular Letter No. 21 the interim allowance payable in terms of Management Services Circular Nos. 07 of 11.09.2000 and 12 of 18.102001 as adopted by Establishments Circular Letter Nos. 16/2000 and 12/2001 respectively will continue to be operative in parallel with the new salaries. The 10% allowance paid in terms of the Management Services Circular No.07 as adopted by Establishments Circular Letter No. 16/2000 should be calculated on the revised salary scales with effect from 01.01.2004.

The Monthly Compensatory Allowance (MCA) and Interim Compensatory Allowance(ICA) will continue to be paid as at present as per Commission Circular Nos. 750, 774 and Establishments Circular Letter No.6/2004.

The 30% Academic Allowance payable to the Teachers as defined in the Universities Act No. 16 of 1978 as amended, and the 10% allowance payable to Sub- Wardens (full-time) as personal to the holder basis should be calculated on the basis of revised salaries. The Language Proficiency Allowance should be made on the basis of revised salaries.

8.1 the incremental dates remain unchanged.

8.2 Increments earned on or before 3 1.12.2003 should be granted on the salary scales existed prior to revising of salaries in 2004.

8.3 the full value of the increment on 2004 revised scales should be granted to those who have earned their increments on or after 01.01.2004.
Combined Allowance
The combined allowance should be paid on the basis of following steps of the revised salaries from 01.01.2004 in accordance with the para 5 of Public Administration Circular No. 15/2003 ] 30.12.2003.

2004 New Salaries Combined Allowance
Rs.57720/- per annum and less Rs.150/-
Rs.57721/- per annum to Rs. 81300 /- Rs.180/-
Rs.81301 /- per annum to Rs. 133440 /- Rs.230/-
Rs.133441/- per annum and above Rs.280/-

Railway Warrants and Holiday Travel
The class of accommodation will be determined as follows;

(2004 new salaries )
1st class - An officer drawing a salary ofRs.100,440/- per annum and over.
2nd class- An officer drawing a salary ofRs. 77,340 /- per annum and over.
3rd class- All others.
Daily Pay
The daily pay should be made according to the rates given in Annex II.

Half and No- Pay Leave
Recoveries should be continued to be computed as at present but on the basis of the revised salaries from 01.01.2004.13.

Payment of Gratuity and Loans
13.1 The calculation of gratuity and loans effective from 01.01.2004 should be on a basis of the revised salaries.

13.2 In the case of calculation of the gratuity of the employees who had served prior to 01.01.2004 the salary drawn by the employee prior to that date will be considered.
Payment of Equalization Allowance
When calculating the equalization allowance payable to Medically/Dentally qualified teachers, Medical Officers and Dental Surgeons the revised salary with other allowances where applicable should be taken into consideration with effect from 01.01.2004.

Holiday pay etc.
The following should continue to be calculated as at present but on the basis of revised salaries a per this circular with effect from 01.01. 2004.
  • (a) Holiday pay
  • (b) Salary advance
  • (c) Limit on deductions from salaries.

Over Time
The rates of overtime per hour is calculated on the basic salary of the employee concerned. The basic salary for this purpose from 01.01.2004, should be the revised salary.

Universities Provident Fund , Pension Fund and Employees Trust Fund
Contributions to the Universities Provident Fund , Pension Fund and the Employees Trust Fund, should be based on the revised salaries with effect from 01.01 . 2004. 18


Additional Funds required to pay the revised salaries will be provided by the Treasury.

The provisions of this circular will not be applicable to those employees who have already been re-employed or recruited on contract basis.

It should be noted that any over payment made due to misinterpretation of these instructions or through clerical or other errors in computation, should be promptly recovered from the employees concerned.

(Prof. B.R.R.N Mendis- Chairman)


  • Chairman/UGC
  • Vice-Chairman/UGC
  • Members of the UGC
  • Secretary/UGC
  • Deans of Faculties
  • Registrars of Universites
  • Financial Controller/UGC
  • Bursars of Universities
  • Librarians/SAL/AL of the Higher Educational Institutions/Institutes;
  • Snr. Asst.Registrars/Asst.Registrars of HEIs/Campuses
  • Snr. Asst.Bursars/Asst.Bursars of HEIs/Campuses
  • Chief Internal Auditor/UGC
  • Govt. Audit Superintendents of Universities
  • Snr. Asst.Int. Auditors/Asst.Int.Auditors of HEIs
  • Secretaries of Trade Unions
  • Auditor-General

File No. UGC/HR/2/9/86