Employees’ Provident Fund
The Employees’ Provident Fund (EPF) was established under the EPF Act, No. 15 of 1958 and is currently the largest Social Security Scheme in Sri Lanka. The aim of the EPF is to assure financial stability of the employees of Private Sector Firms, State Sponsored Corporations, Statutory Boards and Private Business in their retirement.
As at end 2022, the assets value of EPF was around Rs. 3.5 trillion. The Administrative aspects of the EPF is being controlled by the Commissioner of Labour whilst the Management of the funds is entrusted with the Central Bank of Sri Lanka (CBSL). The EPF Department, on behalf of the CBSL, is responsible for receiving all sums paid under the EPF Act as contributions, surcharges and fees and the income from the investment of moneys, having custody of the moneys of the Fund, maintaining separate accounts in respect of each member of the Fund, paying the persons certified by the Commissioner of Labour the benefits to which those persons are entitled under the Act, investing moneys of the Fund which are not immediately required for the purposes stipulated in the Act, maintaining books of accounts relating to the Fund, preparation of financial statements of the Fund and transmit a copy to the Minister in charge of Labour and submission of the same to the Auditor General.
According to the EPF Act, an employee is required to contribute a minimum of 8 per cent and the employer a minimum of 12 per cent, of the total earning of the employee’s monthly salary. Thus, an employee’s EPF contribution is invested in secured investments.
The EPF is not only a helping hand or a shoulder to lean upon in the retirement age but also a great partner throughout. EPF will provide employee with the option of obtaining a guarantee facility to obtain housing loans and 30 per cent partial withdrawal to cater housing and medical needs as pre-retirement benefits. Thus, EPF is helping employees to realize their dream of a ‘home’ before retirement and to address health concerns.
General Information of the Fund as at 2022/12/31
| Item | 2022 | 2021 | Change (%) |
|---|---|---|---|
| Total value of the Fund (Rs.bn) | 3,459.9 | 3,166.1 | 9.3 |
| Total liability to members (Rs.bn) | 3,380.6 | 3066.9 | 10.2 |
| Total number of member accounts (mn) | 20.9 | 20.3 | 2.9 |
| Contributing member accounts (mn) | 2.7 | 2.5 | 8 |
| Total contributions (Rs.bn) | 194.6 | 165.7 | 17.4 |
| Total refunds (Rs. bn) | 163.0 | 118.2 | 37.9 |
| Net contribution (Rs.bn) | 31.6 | 47.5 | (33.6) |
| Number of refunds | 254,630 | 179,681 | 41.7 |
