Government to increase employers’ EPF contribution to 15%

December, 18, 2019

The government will raise the contribution by employers to the Employees' Provident Fund (EPF) to 15% from the existing 12% and introduce an insurance scheme for public and private sector employees who become unemployed, a government policy document said.

This was affirmed in the fourth chapter of the policy document titled “A Productive Citizen and a Happy Family.”

Under the sub-sector 'Public Service' the government has announced several activities in order to establish a People-Centered Community. Such as;

  • Introduce a new “Code of Ethics‟ to ensure an independent public service.
  • Introduce an insurance scheme for public and private sector employees who become unemployed.
  • Increase the employer's contribution to the Employees Provident Fund (EPF) for employees of the public and private to 15% from the existing 12%.
  • Set legal provisions to indemnify officers of government departments, semi-government public corporations and banks who carry out their duties in good faith.
  • Give a healthcare allowance to lower grades of employees in the public service including the local government service Institutes.
  • Expedite the payment of the widow‟s and orphan‟s pensions to those who are eligible.

Currently, Sri Lankan employees contribute 8% from their salary to the EPF and the employer contributes 12%.