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EPF Amendment Bill challenged in Supreme Court

by Wasantha Ramanayake

Two Special Determination applications were filed before the Supreme Court challenging the Employees' Provident Fund (Amendment) Bill. Petitioners General Secretary of the Lanka Guru Seva Sangamaya (LGSS) and the President of the Local Government Service United Workers' Union (LGSUWU), sought a court determination that the said bill should be approved at a referendum and two third majority in the Parliament. Petitioners cited the Attorney General as the respondent.

Petitioners claimed that the said Bill was presented to the Parliament by the Finance Minister, on December 11.

They stated that the said Bill defined two categories of employees in the Public Service and the Provincial Public Service.

Petitioners alleged that in terms of the said Bill, in the rights of one category the employees who would join the services after January 1, 2003 must contribute eight percent of their salaries to the Pension Fund and would only receive 70% of the monthly salary as the pension per month at the completion of 30 years service. Whereas, employees those who joined before January 1, 2003, without making any contribution, were entitled to a monthly pension of 90% of their monthly salary after the said period.

According to the petitioners, the latter category is more disadvantageous than even the private sector since the employers, to whom the Bill applies require to pay only 12% to the said Pension Fund. Private sector employers should contribute 12% to the Employees' Provident Fund and three percent to the Employees' Trust Fund.

Petitioners stated that certain provisions were also inconsistent with the Constitution relating to Judiciary and thus affect the independence of the Judiciary.

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