Minister of Labour and Foreign Employment Manusha Nanayakkara has assured that the existing 9% employee benefit related to the Employees’ Provident Fund (EPF) will remain unchanged.
“As a government, we have secured approval from both parliament and the Cabinet and we have made the decision to extend the 9% return for another four years.”
This means that individuals will continue to receive an annual benefit of 9% on their savings, without any additional 14% or 30% taxes, Nanayakkara said noting that it is important to clarify some misconceptions on this matter.
The lawmaker also emphasized that taxation is not levied on the funds held by members of the EPF, instead, it is imposed as a percentage of 14% on the profits generated from the fund’s investments.
Minister Nanayakkara made these remarks during his participation in a press conference held on Sept. 15 at the Presidential Media Centre, on the theme of ‘Collective Path to a Stable Country.’
Disregarding the statements that superannuation funds EPF and ETF (Employee Trust Fund) are in danger as largely rhetorical and lacking a substantial plan, the lawmaker noted that the Central Bank, as the custodian of the EPF, is an independent institution and will not be negatively affected.
“It is important to emphasize that decisions regarding the Fund will not be made through the Ministry of Labour.”
Speaking further, he said the government is planning to implement a digital data system at the beginning of 2024, which will strengthen the country’s migrant labour policy. “Additionally, we have completed the groundwork for digitalizing all data systems in the Labour Department and are actively working towards introducing an E-salary system.”
-adaderana