Existing social security and pension schemes are to be expanded ensuring better social protection for self-employed persons countrywide, State Minister of Micro Finance and Self Employment Shehan Semasinghe said. The need to make certain the social protection for self employed has been identified as one of the challenges to be urgently tackled by the government, [...]

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Better social protection for self-employed persons

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Existing social security and pension schemes are to be expanded ensuring better social protection for self-employed persons countrywide, State Minister of Micro Finance and Self Employment Shehan Semasinghe said.

The need to make certain the social protection for self employed has been identified as one of the challenges to be urgently tackled by the government, in the near normal COVID-19 period, he told a meeting of senior officials in Colombo recently.

According to Finance Ministry sources, a decision has been taken to revitalise the Sri Lanka Social Security Board and devise a necessary plan and methodology to expand and extend the existing social security scheme enrolling more self-employed.

The Social Security Board is to be transformed into an institution that is not a burden to the Treasury and provides more services to the people by introducing novel and innovative income generating schemes.

All persons who are not entitled to receive pension or are not holding pensionable jobs are eligible to enroll in these schemes, a senior Ministry official said.

This helps to encourage self-employed persons to continue in their respective occupations and to develop their capabilities and skills; he said adding that it also improves the living standard of self employed persons.

There are also contributory pension schemes for the informal sector workers which include the Farmers Pension and Social Security Benefit Scheme (FMPS), Fishermen’s Pension and Social Security Benefit Scheme (FSHPS) and the Self-employed Persons Pension Scheme (SPPS).

The coverage of the SPPS was around 11 to 18 per cent of the workforce and the benefits from this scheme for members are inadequate for their living expenses and to keep them out of poverty.

Therefore benefits of the SPPS schemes should be enhanced and passed onto the entire self-employed population, he said pointing out that the Treasury is focusing attention on expanding other pension schemes in the informal sector as well.

Self-employed, in Sri Lanka was reported at 42.02 per cent of the total employed population or 3.31 million people, according to official data.

More than 60 per cent of Sri Lankan workers are employed as daily wage earners. Several million more workers are self-employed, earning their living daily in jobs such as vendors and three-wheel taxi operators.

(BS)

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