The Employees Provident Fund Sri Lanka (EPF) offers a financial safety net for Sri Lankan employees. Notably, EPF came into being in 1958 under Act No. 15 and is a reliable employee support system. Central Bank of Sri Lanka (CBSL) manages the Employees’ Provident Fund Sri Lanka. Uniquely, the fund’s purpose is to ensure a stable retirement for employees in both public and private sectors.
Employees Provident Fund Sri Lanka: Explained
The Employees Provident Fund requires employees and employers to contribute monthly. In brief, Employees must contribute at least 8% of their salary, while employers contribute a minimum of 12%. Ultimately, these contributions grow through secure investments, helping to guarantee long-term financial security. In effect, by the end of 2022, EPF assets totaled around Rs. 3.5 trillion. Henceforth, EPF is significant as it is Sri Lanka’s largest social security scheme.
Vision and Mission of the EPF
The EPF aims to be a caring superannuation fund, that supports members to enjoy a comfortable retirement. Hence, its mission is to maximize retirement benefits while it strives for efficient service and prudent fund management.
How the EPF Works
The EPF operates as a joint savings plan. Overall, employees in the private sector, state corporations, and statutory boards participate in this program. For example, the Commissioner of Labour handles administrative duties, while the CBSL manages the fund’s investments. Explicitly, these investments focus on stability and returns, which benefit all EPF members in the long run.
Benefits of the Employees’ Provident Fund Sri Lanka
Beyond providing a retirement fund, the EPF offers pre-retirement benefits. Thus, members can withdraw up to 30% of their EPF balance for housing or medical expenses. Additionally, the EPF allows members to secure housing loans using their savings as a guarantee. Therefore, this flexibility makes the Employees’ Provident Fund an invaluable partner. In essence, EPF helps members to build a home and address their health needs before retirement.
- The EPF members can claim their retirement benefits (contributions and accumulated interest) upon reaching the retirement age of 50 years for females and 55 years for males.
- Members are also entitled to withdraw funds in their EPF accounts because of migration, or permanent disability.
- Female members can withdraw their EPF funds when they leave employment due to marriage.
- Legal heirs of deceased members are eligible to receive the benefits in the case of the death of a member.
Visit EPF website here
Read Employees Provident Fund Act here
Read Employees Provident Fund Amended Act 2012 here
In conclusion
The Employees Provident Fund continues to play a critical role in securing the financial future of employees. Moreover, through its commitment to stability and innovation, the EPF remains a trusted resource for the country’s workforce.