PRB Report 2026: A Balancing Act Under Severe Economic Constraints
Published on Friday evening, the 2026 report from the Pay Research Bureau (PRB) is set against an economic backdrop that the institution itself describes as particularly challenging. “This report has also been prepared under circumstances that are quite difficult, particularly in a financial environment marked by significant constraints,” emphasizes the Bureau. The salary increase will be applied at 50% in January 2026, followed by 100% in 2027.
This macroeconomic backdrop is exacerbated by persistent price increases. The PRB notes a “continuous upward trend in overall prices, with a marked increase in commodities and food products among others,” which has resulted in “a serious increase in the cost of living.” According to the report, this effect is felt more acutely by the categories within its scope, in a context where “the economy is increasingly shifting towards consumerism.” Thus, reconciling the current economic situation with “the legitimate aspirations of stakeholders for a better salary package to alleviate their difficulties” has been, according to the Bureau, “an almost impossible task, even gargantuan.”
The salary revision exercise has proven to be even more challenging than previous ones, particularly due to the effects induced by the increase in the national minimum wage. This was raised to Rs 16,500, including additional remuneration, from January 2024. The PRB considers this increase to have had “far-reaching effects on wages in the public sector.” It has led not only to salary adjustments in the private sector but also to “strong claims from federations for fair treatment,” aimed at restoring salary relativities among different categories of the Civil Service.
As a transitional measure, pending the publication of the 2026 report, the government granted, starting July 1, 2024, a monthly allowance equivalent to an advance, to all public sector employees. This measure, combined with annual compensations for the rising cost of living, has contributed to an increased compression of the salary structure. Thus, the salary ratio between a General Worker and a Permanent Secretary, set at 1:6.2 in the 2021 PRB report, now stands at 1:5.2.
Regarding recruitment and retention, the Bureau notes that the difficulties observed vary across organizations. However, it clarifies that these issues “are not necessarily related to remuneration” and that each situation must be analyzed according to its specifics. Data on applications in the Civil Service show that “for the majority of positions, the public sector remains attractive.”
The PRB indicates it received a significant volume of representations during this exercise: 4,200 from management, 9,700 from trade unions and federations, and 1,500 from individuals. Despite these constraints and the magnitude of the task, the Bureau claims to have formulated its policies “without deviating from the vision and overall objectives of the government in favor of a prosperous, sustainable, and inclusive future.”
Among the fundamentals guiding the formulation of recommendations are the unfavorable state of the economy and the government’s willingness to bring expenditures back to a sustainable level in the medium term. “Financial accessibility and sustainability of salary increases have been central to the development of our recommendations,” emphasizes the report. The PRB has also taken into account the national minimum wage as a reference point, the evolution of purchasing power, cumulative inflation, additional remuneration paid until December 2025, as well as the need for a stronger link between remuneration and performance.
The loss of purchasing power is a key element of this review. Between January 2021 and December 2025, the average erosion is estimated at 18%. However, this varies significantly according to income levels, ranging from 0% for the lowest salaries to about 31% for the highest incomes. The PRB specifies that it has “compensated this loss as much as possible and up to a certain level.”
A Long Service Increment
The report also pays particular attention to salary progression mechanisms, notably the Long Service Increment, designed for employees facing stagnation in the absence of promotion prospects. Previously introduced, this mechanism is reinforced in the current report after having shown positive effects on morale and performance. Incremental movements beyond the salary cap are also maintained for certain profiles, subject to performance and conduct conditions.
Finally, the PRB announces the introduction of a supplemental salary allowance for positions requiring specialized or professional skills, notably in the fields of engineering and infrastructure development, to maintain salary competitiveness.
At the conclusion of this exercise, the Bureau states that it has sought to maintain a socially acceptable salary ratio, set at 1:5.4 between the General Worker and the Permanent Secretary, while the ratio with the Senior Chief Executive now reaches 1:6.7. “The entire exercise resembled a balancing act between budgetary responsibility and the necessity of preserving an efficient public service,” concludes the PRB, summarizing the overall spirit of its recommendations.
