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Disaster Loan Limit for Public Servants Increased to Rs. 400,000 from May 1

The Ministry of Public Administration, Provincial Councils and Local Government has issued a new circular introducing revised provisions for the disbursement of disaster loans to public sector employees.

Effective from May 1, 2025, the maximum loan amount available to public servants under the disaster relief scheme has been increased from Rs. 250,000 to Rs. 400,000. This revision aligns with recent adjustments to public sector salaries.

According to the circular, which has been distributed to Secretaries of Ministries, Provincial Chief Secretaries, and Heads of Departments, the increase was made in consideration of the proposed rise in the minimum basic salary of public servants under the 2025 national budget.

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