Employee Provident Fund Act No.

15 of 1958
Object of the EPF Act is to provide retiring benefits to employed persons in the private and state
(corporation sector) sector undertakings through the machinery of a contributory provident Fund. EPF
Act is a landmark piece of legislation in the field of social legislation of this country.

The administration and enforcement of the fund is entrusted to the Commissioner of Labour and the
Provident Fund Section of the Central Bank.

Employees Provident Fund is administered by Commissioner of Labour An employee is entitled to

membership in the EPF from first day of his employment. FORMS for MEMBERSHIP – FORM A,
FORM B,FORM H. Contravention of the above is a punishable offence

Both employers and employees contribute to the fund and all employments including following too are
covered under this Act. (Sec.8(1)

I. working under an employer with a contract of employment are covered under this act.
Employees irrespective of whether they are permanent, casual, temporary or fixed term, in any capacity
are covered by the act

III. Local Government employees who are not covered by any pension scheme.

Rates of contribution (sec.10)

• Employee -8%

• Employer -12%

Every employee and employer of any covered employment has to contribute a minimum of 8% and
12% respectively of the ‘total earnings’ of the employee, to the fund. There is no age limit for making
contribution on joining employment. It is mandatory for all to contribute irrespective of what age he or
she joins employment. There are no objections either the employer or employee voluntarily contributing
more than the minimum contributions prescribed by law.

Earnings (Section 47)

Contributions are based on the earnings of the employee. Earnings include the following according to
the definition given in the act.

➢ wages, salary or fees

➢ cost of living allowance, special living allowance and other similar allowances

➢ payments in respect of holidays

➢ cash value of cooked or uncooked food

➢ meal allowance (bonus and overtime payments excluded)

Surcharge for delays

Where the employer defaults in the payment of EPF contributions to the fund in respect of any month
on the due date, he shall be liable to pay in addition to the amount of contributions due, a surcharge
calculated according to the period of default. The table of surcharge is as follows;

❖ If the delay is not more than 10 days – 5%

❖ Any delay more than 10 days but less than 1 month – 10%

❖ Any delay more than 1 month but less than 3 months – 20%

❖ Any delay more than 3 months but less than 6 months – 30%

❖ Any delay more than 6 months but less than 12 months – 40%

❖ Any delay more than 12 months - 50%

EPF benefits are payable to members under the following circumstances

a) On reaching the age of retirement (males 55 and females 50) and on termination of employment,
or

b) After a female employee ceases to be employed in consequences of marriage, or

c) After such employee ceases to be employed by reason of a permanent and total incapacity for
work as certified by medically unfit, or

d) On taking up permanent residence abroad, or

e) After employed in a covered employment and takes up permanent employment in the public
service

Every member of the Fund who has made contribution for a period of not less than ten years, presently
employed and possess not less than three hundred thousand rupees to his credit in his account shall for
the purpose housing or medical treatment be entitled to withdraw such amount as does not exceed thirty
percent of the amount lying to his credit in his individual account. [S.23 A (1)]

Non-Payment of Contribution

Due amount of money shall be recoverable as a debt to the state, by an action in which proceedings may
be instituted for recovery under the provisions of the Civil Procedure Code relating to summary
procedure.

Any employer who contravenes any provision of the act shall be guilty of an offence and is liable on
conviction after summary trial before Magistrate, to be sentenced to a fine not exceeding Rs.1000 or to
an imprisonment not exceeding 6 months or both; and is further liable to pay a continuing fine of Rs.50
per day. Apart from aforesaid sentence. The Magistrate also may order the amount due to be paid as a
fine.
Employee Trust Fund Act No. 46 of 1980

Employees’ trust fund was established by Act No 46 of 1980. This fund is not under control and
supervision of the commissioner of labour. Under this act a statutory body named trust fund board is
established to manage this fund. Only the employer is required to make a contribution of 3% from the
total earnings of the employee.

Earnings

Contributions are based on the earnings of the employee. Earnings include the following according to
the definition given in the act.

✓ wages, salary or fees

✓ cost of living allowance, special living allowance and other similar allowances

✓ payments in respect of holidays

EPF ETF
✓ cash value of cooked or uncooked food
Contributions Jointly by both parties, Employer and Only by Employer
✓ meal allowanceEmployee Employer – 3%
(bonus and overtime payments excluded)

Self-employed personsEmployer- 12%workers may also join the fund on a voluntary basis.
and migrant
Employee- 8%
One need not wait tillDept.
Administration he reaches 55 years or 50 years to withdraw
of Labour one’s Trust
Employees’ benefits like
Fund in the case of
Board
Investments
EPF. A member could Govt. securities
claim only standing to his credit
the amount Govt. securities,shares
in the fund in any of and
theany other
following
circumstances. Decided on by the Monetary Board Prudent investments decided by the
ETFB
a) On termination
Account Central Bank of Sri Lanka ETF Board itself
b)Keeping
Where he is over 60 years of age

On migration On
c)Withdrawal reaching
with 55 years
the intention (or returning
of not 50 for home On termination of Employment
females) only, other than in special At any age including change of
d) On cessation of employment by reason of a permanent employment
cases and total incapacity for work
Welfare Housing loans from Commercial - Life Insurance Scheme
On taking up Banks
e)schemes by pledging
a pension The EPF balance
able appointment in public service - Disability Insurance
- Heart Surgery
All employees who are members of the fund are covered by an automatic life insurance
- I.O.Lens Implant which entitles
them to insurance benefits provided. - Scholarships for year 5
Children
a) That the member was less than 70 years old at the time of death
- Financial Assistance for
Hospitalisation
b) That the member was in employment at the time of death - Low interest Housing

c) That contributions had been made in respect that member for a loan”VIYANA”
period of at least 6 months
- Financial Assistance for
d) Applications for withdrawal of funds should have been made withinKidney2 transplants
years of death.