Introduction
The Employees’ Provident Fund Act No. 15 of 1958 established the Employees’ Provident Fund with the primary objective of providing the employees of the private and semi-public sectors of Sri Lanka with a good economic status in retirement. The administration of this fund is done by the Commissioner General of Labour/Department of Labor and its funds are held by the Monetary Board/Central Bank of Sri Lanka.
The Central Bank of Sri Lanka has managed to keep the annual interest rate of the fund higher than 10% in the past years. And this interest is continuously added to the member’s balance as interest. At least 12% of the employee’s monthly gross earnings is contributed by the employer and 8% by the employee to the Employees’ Provident Fund, so every month as much as 1/5th of the employee’s gross earnings is used to secure the member’s retirement.
Currently, the Employees’ Provident Fund has become the largest social security system in Sri Lanka. The number of active employees who pay contributions to the fund increases to 2 million and the total value of the fund is about 2 trillion rupees. Central Bank of Sri Lanka data has shown that in 2017, employee provident fund income was 133 billion rupees and 117 billion rupees were spent to issue benefits.
Fund benefit payment has been made easier for the members to get benefits through decentralization, and under the method of re-registration of the members of the fund, efforts are being made to identify the beneficiaries correctly and to create an atmosphere that can minimize the inconveniences that may occur during the payment of benefits.