More benefits from Employees Provident Fund:

Grants for housing

Uditha Kumarasinghe and Irangika Range

Labour Relations and Manpower Minister Athauda Seneviratne told Parliament yesterday that employees who contribute to the Employees’ Provident fund (EPF) can withdraw upto 30 percent of their savings for the purpose of constructing houses.

Tabling the Employees’ Provident Fund (Special Provisions) Amendment Bill, the Minister said this will be provided as a grant and not as a loan to facilitate employees to build houses. Employees in the private sector will be entitled to receive superannuation benefits by the EPF through this Bill. It will also provide high protection for their savings.

The Minister said employees can obtain money from the fund for their urgent medical needs such as surgeries. In addition, the Act has provided an opportunity for self employees to contribute to the EPF. “So they can yield huge amounts of money on their retirement,” he said.

“We have also introduced an insurance scheme for the benefit of employees,” he said. “By all means, the Bill has made the EPF more efficient, expediting its process to provide more relief to contributors. A new program will be launched in future enabling contributors to check their savings on the mobile phone at any time.”

Meanwhile, the interest rate of savings will be increased by 10 percent for the benefit of senior citizens who would not withdraw their funds after completion of 55 years.

He said this Amendment will not permit institutions to run individual provident funds at any private institutions. But according to their financial strength a number of facilities can be provided for the welfare of employees by any of the private institution.

“Strict action will be taken against responsible persons who violate rules and regulations of the Act,” the Minister said.