Cabinet approval to amend Employees’ Provident Fund Act to secure 9% interest benefits

Thursday, 10 August 2023 00:30 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers this week approved a resolution presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister to amend the Employees’ Provident Fund Act to assure a 9% annual return after a domestic debt optimisation (DDO).

The resolution mandates essential amendments to the Employees’ Provident Fund Act No. 15 of 1958, aiming to fortify 9% annual interest rates paid to fund members over four years, starting from 2023 to 2026.

“Drawing upon a thorough analysis of annual interest benefit percentages disbursed to EPF members over the past five years, the Government has taken a proactive stance to ensure sustainable financial growth for its citizens,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing on Tuesday.

Assuring that the EPF members can withdraw their funds at retirement, he said that the amendment will guarantee a 9%.

“By amending the Act, the Government aims to bolster the well-being of the workforce and provide a robust legal framework for financial growth in the years to come. Irrespective of Government changes, the law will protect the rights of the EPF members and assure the 9% interest,” Gunawardena added.

He said the strategic approach is designed not only to offer more attractive returns to fund members but to mitigate potential burdens on pension payments and benefits due to the local treasury bonds idealising program.