Only employees of profit-making SoEs eligible for bonuses: Treasury

Officials attached to state-owned enterprises (SoEs) that recorded profits for the financial year of 2022 are eligible for a bonus of Rs 25,000 or Rs 20,000 depending on whether those institutions paid 30 percent of those profits after tax to the Consolidated Fund and received any incentives earlier.

According to a circular issued by the Treasury, those officers who have not received any incentives so far will be entitled to receive Rs 25,000 as a year-end bonus while others who received them will be paid Rs 20,000.

However, commercial corporations, statutory boards and government-owned companies that have earned profits for the financial year of 2022 but have not paid at least thirty percent of profit after tax as dividends, or recorded a loss are not eligible for the bonus based on the profitability of the institution.

The circular issued by Treasury Secretary Mahinda Siriwardena also clarified that funds for the payment of bonuses are not provided by the Treasury and SoEs which pay salaries and other allowances under collective agreement or any other similar Memorandum of Understandings (MOUs).

When a mid-term allowance, which can be considered as a bonus, has been paid by any institution to its employees, it should be considered as an advance of the annual bonus paid at the end of the year unless the Cabinet of Ministers has been granted special approval to consider such payment as an additional bonus, the circular said.

Approval of the Board of Directors or Board of Management should also be obtained for the certification of accurate bonus calculation prior to the payment of bonuses after ensuring provisions for all statutory payments such as Employees' Provident Fund (EPF), Employees' Trust Fund (ETF) and gratuity before payment of bonuses as well.

When a mid-term allowance, which can be considered as a bonus, has been paid by any institution to its employees, it should be considered as an advance of the annual bonus