Sri Lanka’s 50-year old EPF (Employees Provident Fund) is to be re-structured on the lines of the Malaysian model while exploring the possibility of increasing the EPF contribution from employees and employer’s, EPF officials said.
Deputy Director General of the Employers Federation Kanishka Weerasinghe said several private companies have expressed concern over the move. Other sources in the private sector say the real intention of the government is to secure much needed funds for its projects, not to help employees. The Sunday Times FT reliably learns that the Employers Federation has vehemently protested against this move in a letter sent to the Labour Relations Ministry.
A senior EPF official said the Ministry proposal to increase contributions is based on three age categories of employees. A six-member team of senior officials recently visited Kuala Lumpur to study the Malaysia's EPF system and had submitted a report to the Ministry and the restructuring proposal was prepared in accordance with their report.
The present minimum EPF payment of 8% and 12% contributed by the employee and employer, respectively, is to be increased to 10 % and 13% under the new proposal. The EPF contribution of employees who are in the age group of 50 to 65 years will be 10% while the employer’s contribution will be the same. Employees who are above 65 years in age will be liable for 5% payment where the employer will also have to pay 5% with respect to each elderly employee.