FAQs’ for Employers

# Question Answer
1 How to register the employer in the EPF? Within 14 days of the recruitment of the first employee, “FORM-D” should be filled in duplicate, certified and sent via registered post to the nearest Labour Office or directly to the Commissioner of Labour. A registration number will then be provided which starts with two letters of the English Alphabet indicating the administrative district.
2 What is the contribution for provident fund by the employee and employer? Employee’s Contribution: 8% of the total monthly earnings (To be deducted from the employee’s salary/wage).
Employer’s Contribution: An amount equivalent to 12% of total monthly income of the employee (To be paid totally by the Employer).
Total Contribution per Employee: 20% of the employee’s total monthly earnings.
3 What are the components to be considered when calculating the Total Earnings?
  • Salary, wages or fees
  • Cost of living allowances, special living allowances and other similar allowances
  • Payment with respect to holidays
  • The cash value of cooked or uncooked food supplied by the employer to the employee (Determination of such value will eventually be made by the Commissioner of Labour)
  • Food allowances
  • Any kind of remuneration that may be specified
  • Payments in the form of discounts (Commissions) piece rate payments and contract basis payments
4 What components to be excluded when calculating Total Earnings?
  • Overtime payment
  • Reimbursable Traveling expenses
  • Incentive payments/ Bonus Payment
5 What is the deadline to send the monthly EPF contributions to EPF department of Central Bank of Sri Lanka? EPF contribution for each month should be made on or before the last working day of the following month. Otherwise, surcharges will be imposed against the employer according to the delay.
6 Who is responsible for remitting EPF contributions to EPF Department? The employer has the responsibility of paying EPF contributions for each employee under its employment. The employer is not absolved from this responsibility even on the ground of the employee’s unwillingness to contribute for EPF.
7 What institutes have exemptions for paying EPF Contributions?
  • If the establishment is a social service organization providing technical training for minor offenders, destitute, deaf and blind.
  • A charity organization with less than ten (10) employees.
  • The household employees are not required to make contributions to the EPF up to now.
8 What are the legal actions for under payment or non-payment of EPF contributions? The employee reserves the right to make a written complaint to the Commissioner of the Labour. On the receipt of the complaint and after proper investigation, the employer will be informed and warned to pay the dues. If the employer does not fully cooperate and pay the contributions after three warnings, the Labour Department will be forced to take legal action against the employer to safeguard the rights of the employee.
9 What are the consequences of non-payment of contributions? Due amount shall be recoverable by considering such amount as a debt to the State.
10 Should all firms pay EPF? All Covered employments as stipulated in the Sec 8 of the EPF Act No. 15 of 1958 are liable to pay contributions.
11 How to register for e-submissions (submission of e-Returns) By submitting the Registration Form provided by EPF, directly to the EPF or through a Licensed Commercial Bank (LCBs) in Sri Lanka that facilitates the payment of EPF contributions and submission of contribution details through online banking systems for their EPF paying customers.
12 Do all Commercial Banks provide EPF online payment facility for their customers? Only 08 Licensed Commercial Banks facilitate EPF online payments for their customers

(Commercial Bank, Bank of Ceylon, HNB Bank, Sampath Bank, People’s Bank, NDB Bank, Seylan Bank & DFCC Bank)
13 Can any employer make online payments? Yes. Any employer can make online payments irrespective of the number of employees in their employment. However, submission of e-Returns is mandatory for the employers who are having a minimum of fifty employees in their employment.
14 Who can make EPF payments through Direct Debit payment option? EPF facilitates Direct Debit payment option only for the employers who are having a minimum of fifty employees in their employment.
15 How can I get more information on ‘EPF Online Payment’ process? Please refer the ‘Remitting Contribution’ <As applicable, pls> section of this website OR by Sending an e-mail to epfC3@cbsl.lk OR calling on the below telephone numbers in working days from 8.00 a.m. to 4.15 p.m.

 

+ 94 – 112477475, 2477981, 2477927, 2477971, 2477987, 2477990, 2477999.
16 How to calculate and pay the surcharges on delayed contribution payments? Surcharges will be charge on

  • Late submission of contributions
  • Under payments

(When the amount paid is less than the calculated contribution, a surcharge will be added according to the number of days from the under payment to the full payment.Surcharge for overdue payments and under payments are as follows,Delay Surcharge

Period of delay Surcharge Rate
01 days – 10 days 5%
11 days – 01 months 15%
01 months – 03 months 20%
03 months – 06 months 30%
06 months – 12 months 40%
More than 12 months 50%

Could pay surcharges along with late contributions or after late submission of EPF payments as per the notice of Labour Department.
17 Can employers pay late contributions tothe EPF Department ofCentral Bank directly? Employers are liable to pay late contributions directly to the Central Bank along with the late surcharges imposed by Labor Department.
18 Can employers make payments arise as a result of an action taken by Labour Department? Delayed contributions & surcharges imposed by the Red notice/notices/actions taken by the Labour Department and contributions & surcharges calculated as a result of court decisions should be paid through Labour Department.
19 How can we obtain a Form “C”?. How many copies should be prepared? EPF Department of Central Bank will post member details printed Form “C” on a monthly basis to active employers who have less than 50 employees.

Employers can obtain a blank copy of “C” Form from the nearest Labour Office for free of charge or can be downloaded from the www.epf.lk (when non receipt of pre-printed Form “C”).

 

Three copies should be prepared. The original copy of the Form “C” should be submitted to the EPF Department of CBSL and the second copy should be forwarded to the nearest Labour Office. The third copy should be kept with the employer for the future reference
20 What are the modes of paying EPF payments and sending contributiondetails manually(using Form “C”)?
  • EPF contribution remittances through cash or cheque are accepted at all branches of the People’s Bank.
    • To make the contributions, Employer has to submit duly completed Form “C” which consists of the reference number along with EPF cheque/cash slip to the People’s Bank Branch.
    • The reference number (Ref. No. ) which is printed on below the employer address in the Form “C” , should be written down in the particular area of the EPF cheque/ Cash deposit slip.
  • Cheques and bank drafts should be drawn in favor of the Superintendent of the Employee’s Provident Fund.
  • Cash payments could be made at the Bank of Ceylon, Thaprobane Branch.
  • Money Orders (Paying Office should be indicated as Colombo)

(Post the original Form “C” with the instrument of payment (cheque/ money order/ bank draft/ cash slip of Bank of Ceylon) to the Superintendent , Employees’ Provident Fund Department, Lloyd’s Building, No 13, Sir Baron Jayatilleke Mawatha, Colombo 1 or handover it to the document collection counter of the Department of EPF at the Lloyd’s Building).

 
21 How to pay EPF contributions through Peoples Bank if not received a pre-printed Form “C”? Download a copy of the Form “C” from the www.epf.lk and inquire following numbers to obtain reference nos.
0112206637,0112206638,0112206639,0112206659,0112206661
22 Who is responsible for remitting EPF contributions to EPF Department? Employer is responsible to remit monthly contribution of 20% from earnings of the employee (employee – 8% and employer – 12%) to the EPF.
23 Should employers wait to pay monthly EPF remittance until they receive pre-printed Form “C”? No, Copy of the Form “C” can be obtained (free of charge) from the nearest Labour Office or can be downloaded from the www.epf.lk when non receipt of pre-printed Form “C”.
24 How to add new employees and inactivate retired/ resigned employees? When a new Employee is recruited, employee’s details should be included in Form “C” of the particular month. Member details should be duly filled as per the National Identity Card (NIC) of the new member.
When an existing Employees are retired/left, employer need to inform the EPF by way of a letter with a list of employees who have left/ resigned/retired.
25 Should a company register“B” cards of the employees before paying first contributions to the EPF? Yes, Assign EPF membership numbers for employees in numerical order and register as a member in the Employee’s Provident Fund within 14 days of recruitment.
26 Is it possible to allocate a Number already allocated to a member toanother member in the past or at present? Members should not be allocated a number already allocated to another member in the past or at present.
27 When the “B” card should be hand over to the employees? When an employee leave/resign/retire from the employment. However, information in the “B” cards should be verified with employees and should take necessary actions to rectify any mismatches
28 Is it employer’s responsibility to take actions to rectify discrepancies in employee’s names/NIC in EPF Central bank database and Labour Department database? Yes, Employer is responsible to provide correct details and to make a request along with certified copies of employee’s NIC,“B” card, Birth Certificate to rectify employee’s name/NIC no in Central Bank database and Labour Department database.
29 How to update Employer Registration in Central Bank database? Registering new Employments – Copy of the Certificate of Registration issued by the Department of Labour should be forwarded.
Change in,

  • Employer names – Copy of the amended Certificate of Registration issued by the Department of Labour should be forwarded.
  • Permanent address – Confirmation by the Commissioner of Labour should be forwarded.
  • Postal address – Written request from the employer should be forwarded.
  • Employer status (Activate/ Inactivate) – Written request from the employer should be forwarded.
30 What are the circumstances of imposing surcharges? 2% surcharge on the total payment will be imposed for submitting incomplete details (Form “C”, Text files)
If there are discrepancies in the member details or payment, member accounts will not get updated and inform to the employers.
Contributions which are sent without Form “C” or text files are not entered to the members’ accounts and will lead to complications and penalties
31 How to react when discrepancies are identified in employees’ name/NIC in monthly Pre-printed Form “C” sent by the Central Bank? Send a request letter along with copies of NIC, “B” card and Birth Certificate of the respective member which certified as “TRUE COPY” by the employer to amend the employees accounts and to update members details in the Form “C” accordingly.

If that particular discrepancies are in employees’ name/ NIC since “C” Form received with erroneous name/NIC of employees through Labour Department (in case of an accumulated late payment or payment made as a result of a legal proceeding),request for amendment should be received through both employer & a respective Labour Office.
32 What Employer need to do when employer receive a letter for verification of employees’ Name /NIC mismatches? Please check whether employee’s data in Central Bank database or in particular Form “C” is correct. If data in Central Bank is accurate, send a letter confirming the accuracy of the Form “C” to the EPF accordingly. If there is a discrepancy in the data in the Central Bank, send a request letter along with copies of NIC, “B” card and Birth Certificate of respective member which certified as “TRUE COPY” by the employer to amend the employees details and to update members accounts as per the Form “C”.
33 What employers need do when receive a letter informing under payment/over payment? Employers are responsible to provide accurate Form “C” and pay the shortfalls if any and 2% surcharge, in order to expedite the process of updating the contributions remaining in the suspense account,to the individual member accounts.

If it is an overpayment, employer can settle off it from the subsequent EPF contribution payments (Have to mention cheque no and over payment details with subsequent payments) or can forward a request to refund it within the one year of date of payment.
34 How to obtain a confirmation for the EPF payments? In normal course of business, acknowledgments for receipts of contributions are posted by the EPF to employers.
35 How to get a copy of receipt? Duly authenticated request letter submitted by employer with payment details(Employer No, Date of payment, Cheque/payment reference No., Amount paid and applicable period).

If a representative of an employer is appointed to collect receipts, a nomination letter to collect such receipts including the details of name and NIC number of nominees should be presented.
36 Should employer distribute Half year Members Statements among employees? Yes, Employers are responsible to distribute Half year Members Statements of Accounts among employees and to return Members Statements of Accounts to the EPF if they cannot distribute to the employees who are no longer work in the organization.
37 How to receive Half year Members Statements of Accounts by hand? A letter requesting to hand over EPF members Statements of Accounts to the person mentioned in the letter who is nominated as the agent of the employer should be submitted to the EPF Department.
38 What should an employer do when receive another employer’s half year Members Statements of Accounts erroneously? Return to the EPF immediately as secured manner and have to make a request to receive own members Statements of Accounts to the EPF
39 How to get the refund of over paid contributions to the EPF? Submit duly filled Form “Q” through the Commissioner of Labour within one year of the payment to the EPF for refunding of overpaid amounts/erroneously paid contributions by the employers to the fund
40 What should an employer do when they send ETF contributions to the EPF erroneously? Inquire the Cheque and the ETF Form from the EPF and have to pay correct amount of EPF and Form “C” once noticed the mistake
41 What should do when employer ‘s details are erroneously entered in Form “C” and identified before the Central Bank? Send an amended Form “C” and a request letter to the EPF Department.
42 How to transfer private provident Fund to the EPF?  

Send amount equals to net closing balances in individual accounts of provident fund in Rupee term along with audited “N” form through Commissioner of Labour.

 

 
43 What documents need to submit when requesting to update members accounts on urgent basis? In following instances EPF members can request to update contributions received to their accounts on urgent basis.

  • Applying for 30% refund withdrawal
  • Applying for EPF Housing Loan
  • Applying for refunds on the basis of marriage
  • Applying for refunds on migration
  • Following Documents are required to submit in this regard.
    • A written request of the employer under specific format.
    • Certified true copies of the relevant Form “C”
44 Is it compulsory to Re-register members with EPF Department? Yes. If there are discrepancies in the Full name and NIC number of employees in the EPF data, employers are required to Re-register such employees with EPF by submitting relevant documents.
45 How to Re-register employees?
  • Download or collect the RR-6 Form from EPF or CBSL websites (www.epf.lk, www.cbsl.gov.lk)
  • Fill the RR-6 Form completely and accurately according to the details as per the NIC of its employees (Employees should be made aware of the importance of providing accurate NIC details).
  • Obtain the signatures of the employees as a verification of the details provided (Compulsory).
  • Information provided in the RR-6 form should be certified by the employer only after verifying with the NIC details (Compulsory).
  • Attach copies of NICs (NIC should be clear and certified by the employer) to the RR-6 Form and indicate the EPF member number along with the employer number in the NIC copy (only NIC is accepted for the Re Registration).
  • Post or handover the dully filled RR-6 forms along with NIC copies to Re-Registration Division, EPF Department, Central Bank of Sri Lanka, No 30, Janadhipathi Mawatha, Colombo 01.
46 How to amend details of already re-registered employees?
  • Letter from the employer (company) addressed to the EPF department requesting to amend the name or the NIC or both.
  • Copies of NIC, “B” card and Birth Certificate (All copies should be certified by the employer).
  • Certified marriage certificate if the name has been changed after the marriage.
  • Letter issued by the Department of Registration of Persons (DRP) in case of a change in the originally issued NIC number by the DRP.
47 What should an employer do if not receive members Statements of Accounts? Inquire from the EPF Department once the paper advertisement published by the EPF to aware dispatching of members Statements of Accounts (if employer is already active and has paid relevant semi- annual contributions on time)
48 What documents should be provided to clear dummy numbers or to amend contributions of members? Make a request along with copies of employee’s NIC, “B” card, Birth certificate which certified as “TRUE COPY” by the employer and past contribution details to each members’ accounts