Employees Provident Fund..........!
Employees Provident Fund..........!
Employees Provident Fund..........!
Employees Provident Fund
The Employees Provident Fund was established under the Employees Provident Fund Act, No. 15 of 1958 and is currently the largest social security scheme in Sri Lanka. The objective of the Employees Provident Fund is to ensure the financial security of employees in private sector institutions, government-sponsored corporations, statutory boards and private businesses during their retirement.
As of the end of 2022, the assets of the Employees Provident Fund were approximately Rs. 3.5 trillion. While the administrative matters of the Employees Provident Fund are controlled by the Department of Labour, the management of the Fund is entrusted to the Central Bank of Sri Lanka. The Employees Provident Fund Department, on behalf of the Central Bank of Sri Lanka, is responsible for receiving all monies paid under the Employees Provident Fund Act by way of contributions, surcharges, fees and income from investment of monies, for having custody of the monies of the Fund, for maintaining separate accounts in respect of each member of the Fund, for paying benefits to persons authorised by the Commissioner of Labour under the Act, for investing funds not immediately required for the purposes specified in the Act, for maintaining accounts relating to the Fund, for preparing financial statements of the Fund and for forwarding a copy thereof to the Minister responsible for the Industry and for forwarding the same to the Auditor General.
According to the Employees Provident Fund Act, employees are required to contribute at least 8 per cent of the gross monthly salary of employees and employers at least 12 per cent. Through this, an employee's EPF contribution is invested in safe investments that grow every year.
EPF is not only a helping hand to those who are of retirement age or a shoulder to the weak but also a partner throughout the years. EPF offers employees the option of obtaining a guarantee to obtain housing loans and partial payments of 30 percent to provide housing and medical needs as pre-retirement benefits. Through this, EPF helps employees realize their dream 'home' before retirement and control health concerns.
Required Housing loans applied for and not yet received.
Original Certificate of Financial Loan Balance (Form No. 2) and copies (white and pink copies) should be sent along with the application form.
When the housing loan has been taken and fully repaid
If the loan taken at the time of applying for restoration of benefits has been fully repaid, the application form SHK| should be sent in quadruplicate along with four copies of Housing Loan Form SH14|.
When the arrears on the housing loan are still to be paid
Application form SHK| should be filled in quadruplicate and confirmed by the District Industrial Commissioner, even if the related loan is more, and sent along with the Housing Loan Form SH14. If a current or savings account is opened in the same bank branch, delays in transactions can be reduced. Details SHK| (If the lending branch is far away, it can provide an account number of the nearest bank. The Central Bank of Sri Lanka will release the savings fund after obtaining a confirmation from the lending bank.)
Payment of Benefits
Refunds will be made in any of the following ways
Cheque
Shall be credited directly to the member’s bank account through syllabuses.
After the partial payment
the member’s account will be closed and no claims on the account will be received thereafter. If any partial payments are received after the refunds, the member will have to apply for a partial payment to receive the amount.
If there is any unpaid balance after the refund of the member’s account, the refund can be claimed under partial payments of benefits. A member can apply for a partial payment by submitting an application to the Finance Department of the Central Bank.
Printed application forms for refund can be obtained free of charge from the Department of Finance or can be downloaded from the website.
The Employees’ Provident Fund (EPF) is a social security scheme created for the retirement of employees working in the private and semi-government sectors in Sri Lanka. It was established in 1958.
Key features of EPF:
* Compulsory contribution: It is mandatory for all employees working in the private and semi-government sectors to be members of the EPF.
* Contribution rate: At least 8% of the employee’s gross monthly income must be contributed to the EPF by the employee and at least 12% by the employer. Thus, a total of 20% contribution is paid every month for an employee.
* Administration: The fund is managed by the Central Bank of Sri Lanka. The Department of Labour carries out the administrative work of the fund.
* Investment: The money accumulated in EPF is invested in various ways like government bonds, treasury bills, stock market and corporate bonds.
* Annual Interest: Depending on the returns on investments, the interest rate is declared annually and credited to the members’ accounts.
* Retirement Benefits: Once members reach the retirement age (50 for women, 55 for men), they are eligible to receive the total amount in EPF and the accumulated interest.
* Pre-retirement Benefits: It is permissible to put the money in EPF as collateral for taking out a home loan before retirement and to withdraw up to 30% of the money for specific needs like house construction or medical expenses, subject to certain conditions.
The main objectives of EPF are:
* To provide financial security to employees during retirement.
* To ensure social security.
* To encourage the saving habit of employees.
Employees Provident Fund Board
The Employees Provident Fund (EPF) was established on 1 March 1981 under the Employees Provident Fund Act, No. 46 of 1980. The Fund is administered by the Employees Provident Fund Board, which currently functions under the Ministry of Finance, Economic Stability and National Policies headed by the Hon. Anura Kumara Dissanayake.
The provisions of this Act apply to all public or private sector institutions of a class or category specified in the Gazette published by the Hon. Minister. Self-employed persons and workers working abroad can also contribute to and become members of the Fund.
At present, the Fund has about 2.6 million active members and covers about 79,000 employers. As of 31 December 2021, the value of the Fund was about 406 billion rupees. The EPF In order to decentralize the operations of the Board and provide better services to the members, a branch network was introduced in 1995.
Our vision
To be an effective and viable primary fiduciary to all stakeholders through institutional efficiency.
Our mission
To be a very caring and prudent fiduciary in the broadest sense of the word in the financial interests of the members and in providing excellent customer service.
The main functions of the Board are
To collect contributions from employers.
To invest such funds prudently.
To provide social and welfare benefits to the members and pay claims
To pursue non-paying employers and collect excess income and legal proceedings.
To maintain the accounts of the members and issue annual member statements.
To distribute annual dividends to members based on the profits earned by the fund.
To include self-employed persons as members of the fund
Our Values
✰ Creative, Innovative and Service-Dedicated Employees
✰ People-Friendly Service Environment
✰ Supportive Policies and Procedures
✰ Excellent Arrangements and Rules
✰ Strong Financial Stability
Excellent Customer Community
Member Benefits
Finance
The main objective of the establishment of the Fund is to provide benefits to its members without charging any contribution. For this purpose, the following 08 schemes are currently in operation. These benefits are provided without regard to the balance in the account of the members and no deduction is made from their balances in respect of the benefits so provided. The full interest and dividend declared by the Fund are credited to the members' accounts every year.
Death Benefit-Rs. 100,000/-
• Permanent Disability-• Rs. 200,000/-
•
More than 91% of the investments of the NBFC are invested in government bonds, which provide a high return guarantee in the current market conditions. As per the statutory provisions, the Board is required to disclose the annual dividend + interest to all its members. It was 8% in 2019
The NBFC has revamped its website to provide better services to its members
We are pleased to inform you that we have revamped our website to provide an improved suite of services to the NBFC members and employers. The new website has links to provide employers with an online payment platform and a facility for ETF members to access advanced services.
Employees’ Trust Fund (ETF)
External is a fund created for the benefit of employees in Sri Lanka. It was established under the Employees’ Trust Fund Act No. 46 of 1981.
The main objectives of the ETF are:
* To promote employee rights.
* To promote economic democracy through employee welfare, loans and investment contributions.
* To encourage employee participation in management by acquiring equity interest in companies.
* To provide non-contributory benefits to employees upon retirement.
How does the ETF work?
* Employees working in all government and private sector organizations can become members of the fund.
* Self-employed and migrant workers can also join it on their own initiative.
* Employers are required to contribute 3% of the gross income of employees to this fund every month.
* This fund is invested in various schemes for the welfare of employees.
Benefits of Employees Provident Fund:
* Members can check their account balance online or through SMS.
* Members can check their application status through SMS.
* Various welfare benefits are provided for the welfare of employees.
For more information on Employees Provident Fund
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