Over 22,450 Government, Semi-Government, and private sector institutions have defaulted on paying a total of Rs. 36 billion to the Employees’ Provident Fund (EPF) accounts of their staff, Labour Deputy Minister Mahinda Jayasinghe announced yesterday.
Speaking at the event marking the assumption of duties by the new Commissioner General of Labour, H.M.D.N.K. Wataliyadda, the Deputy Minister emphasized that the Government will take action against employers failing to fulfill their EPF obligations.
Employer Responsibilities & EPF Contributions
Under the EPF Act, employees must contribute a minimum of 8%, while employers contribute 12% of an employee’s monthly salary. These contributions are then invested in secured investments for employees’ future benefits.
Government Action & Labour Law Reforms
The Labour Department is actively pursuing legal action against defaulting employers. Additionally, efforts are underway to:
- Digitalize the Labour Department’s operations, in collaboration with the Digital Ministry, to enhance productivity and prevent fraud.
- Revamp outdated labour laws, with a focus on:
- Preventing workplace harassment against women
- Eradicating child labour
- Reviewing and ensuring the effective implementation of international labour agreements
Deputy Minister Jayasinghe reaffirmed the Government’s commitment to strengthening labour rights and ensuring compliance with EPF regulations to protect employees’ financial security.
