Employees’ Provident Fund
The Employees’ Provident Fund (EPF), established under the EPF Act No. 15 of 1958, is currently the largest social security scheme in Sri Lanka, with an asset value of Rs. 4.4 trillion as of the end of 2024. The primary objective of the EPF is to support the financial well-being of its members, who are employed in the private and semi-government sectors, during their retirement.
The Commissioner of Labour oversees the administrative functions of the EPF. Conversely, the management of the fund’s assets is entrusted to the Central Bank of Sri Lanka (CBSL). The EPF Department is established within the CBSL to facilitate the discharge of duties and responsibilities entrusted to CBSL by the EPF Act. Such duties and responsibilities include 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 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.
EPF Act states that employees must contribute a minimum of 8% of their total monthly earnings to the Fund, while employers are required to contribute a minimum of 12%. This combined contribution of 20% is designed to build a retirement fund for the employee.
The EPF serves not only as an essential support system during retirement but also as a valuable resource throughout an employee’s career. It offers benefits such as a guarantee facility for securing housing loans and allows for a partial withdrawal of up to 30% to help cover housing and medical expenses before retirement. Consequently, EPF assists employees in realizing their aspirations for home ownership and in reimbursing expenses related to health concerns, even prior to retirement.
General Information of the Fund as at 2024/12/31
| Item | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Worth of the Fund (Rs.bn) | 4,375.7 | 3,886.7 | 12.58 |
| Liability to Members (Rs.bn) | 4,289.5 | 3,817.9 | 12.4 |
| Contributions received (Rs.bn) | 234.4 | 210.6 | 11.3 |
| Refunds made (Rs. bn) | 188.1 | 215.9 | (12.9) |
| Net contribution (Rs. bn) | 46.3 | (5.3) | 973.6 |
| Number of Member Accounts (mn) | 22.2 | 21.5 | 3.3 |
| Number of Contributing Member Accounts – during the year | 2,920,618 | 2,635,392 | 10.8 |
| Number of refunds | 208,047 | 221,822 | (6.2) |
