Who We Are?
The Employees’ Provident Fund (EPF) was established under the Act No. 15 of 1958 and is currently the largest and most widespread Social Security Scheme in Sri Lanka. With an asset base of Rs. 2,814 billion as at end 2020, the EPF is a little ‘Peace of Mind’ for the employees of Private Sector firms, State Sponsored Corporations, Statutory Boards and Private Business. The aim of the EPF is to assure financial stability to the employee in the retirement stage of life and to reward the employee for his or her role in the economic growth of the country.
How EPF is Administered?
EPF, being the largest Social Security Scheme in Sri Lanka and having over Rs.2,814 billion of assets as at end 2020. The Administrative aspect of the EPF is being controlled by the Department of Labour whilst the Management of the funds is entrusted with theMonetary Board through The Employees’ Provident Fund Department of Central Bank of Sri Lanka.
According to the EPF Act, an employee is required to contribute a minimum of 8% and the employer a minimum of 12%, of the total earning of the employee’s monthly salary. Employee’s EPF balance keeps growing as employees mature at their working environments. The cumulative balance in their EPF account, which is maintained by the Central Bank, is invested in Treasury Bonds, Treasury Bills, Equity Securities and Corporate Debt Securities, and Money Market instruments. Depending on the rate of return, an annual interest rate is declared and credited to employees’ accounts. Thus, an employee’s EPF contribution isinvested in secured investments which are growing annually, giving an employee a peace of mind that he/she will be stable and able to provide protection for their family and loved ones in the latter part of life.
The EPF is not only a helping hand or a shoulder to lean upon in the retirement age but a great partner throughout, it will provide employee with the option of obtaining a housing loan and 30% 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 2020/12/31
| Item | 2019 | 2020 (a) | Change (%) |
|---|---|---|---|
| Total value of the Fund (Rs.bn) | 2,540.4 | 2,814.4 | 10.8 |
| Total liability to members (Rs.bn) | 2,497.6 | 2,520.0 | 0.9 |
| Total number of member accounts (mn) | 19.4 | 19.0 | (2.0) |
| Contributing member accounts (mn) | 2.9 | 2.5 | (14.2) |
| Non-contributing member accounts (mn) | 16.5 | 16.5 | 0.2 |
| Total contributions (Rs.bn) | 157.2 | 150.5 | (4.2) |
| Total refunds (Rs. bn) | 126.3 | 109.9 | (13.0) |
| Net contribution (Rs.bn) | 30.9 | 30.9 | 0.0 |
| Number of refunds | 241,581 | 197,401 | (18.3) |