Helping the self-employed
A Government Pension Scheme for the self-employed:
V. Jegarasasingam
Sri Lanka is among the countries with a high ageing population.
Presently over 10 percent is senior citizens (over 60 years) of the
total population. Demography specialists have analyzed that these
percentages will increase to 25 percent by 2025. It will be a huge
challenge for senior citizens, children, the Government and society.
When we consider the above situation, we need to have a strong social
security benefit program to help our senior citizens.
All Government Servants are covered by the Government Pensions Scheme
and other security benefits. At the same time employees of co-operative,
statutory boards and other formal sector institutions receive some
security benefits (EPF, ETF).
The majority of the population employed in Sri Lanka are self
employed and they contribute a lot to the national economy. The
Government is concerned over these sectors and has taken action to
provide pension and social security benefits.
Self-employment, a solution to unemployment. AFP |
The Sri Lanka Social Security Board (SLSSB) was established by Act
No. 17 of 1996 and subsequently the areas of activity have been expanded
by Act No. 33 of 1999. The SLSSB under the Social Services and Social
Welfare Ministry has introduced a pension and social security benefits
scheme especially to the self-employed. The following sectors were
specified as those entitled to contribute to the Scheme.
Production excluding primary produce of agriculture, fisheries and
livestock, Forestry and hunting, Mining and quarrying, manufacturing,
storage and packing, Building and construction, Electricity, gas and
water, Transport, Repair and maintenance, Trade and commerce, Insurance
and banking, Real estate and business services, communication,
community, social and personal services, occupation in any other sector
excluding those covered by Farmers' and Fishermen's Pension and Social
Security Benefit Scheme Acts.
These pension and social security schemes will provide monthly
pension payment at the age of 60, death gratuity benefits, total and
partial disability insurance benefits to the members.
Special projects
1. A special pension scheme "Samakadiriya" has been introduced to
those engaging in self employment with physical disabilities and in
addition to the benefits of the pension scheme they are also being
granted self-employment assistance by the National Secretariat for
Persons with Disabilities.
2. A pension scheme for practitioners of Indigenous Medicines who are
registered with the Indigenous Ministry has been introduced by the name
"Helaweda Rekawarana" and it is functioning with the co-ordination of
Ayurvedic Commissioner's Department and the Indigenous Medicine
Ministry.
3. A special pension scheme "Sip Savira" has been inaugurated for
craftmen registered with the National Craft Council and it is in
operation with co-ordination of the Sri Lanka Social Security Board.
4. A pension scheme for those who are employed abroad and registered
with the Sri Lanka Foreign Employment Bureau has been introduced by the
name "Sesatha" and functions with co-ordination of the Sri Lanka Social
Security Board and Sri Lanka Foreign Employment Bureau.
5. A special pension scheme "Saraswathi" has been inaugurated for
Artistes registered with the Cultural Affairs Department and it is in
operation with co-ordination of the Sri Lanka Social Security Board.
6. Another pension scheme "Ransalu" introduced for weavers is a joint
venture of the Sri Lanka Social Security Board and the Textile Ministry.
7. Small Tea Holders are covered by "Randalu" pension scheme and it
is in operation with co-ordination of the Small Tea Development
Authority.
8. Beauty culture sector persons are covered by "Rusiru" and it is in
operation with co-ordination of the Sri Lanka Social Security Board.
Benefits of the pension scheme A monthly pension for life from the
age of 60.
In the event of death of the contributor before completing 80 years
the spouse is entitled to a monthly pension for the remaining period
upto the time when the contributor would complete 80 years.
If the spouse is not alive, the heirs of the contributor are entitled
to a lump sum payment of gratuity equal to the amount remaining
deposited in the name of the contributor.
If the contributor suffers permanent, partial disablement, a bonus
corresponding to the age and/or a monthly pension from the age of 60 for
life.
If the contributor suffers permanent, total disablement a net
contribution bonus together with interest or monthly payment of total
disablement benefits for lifetime.
In the event of death, before receiving his pension, a lump sum
gratuity to his/her dependents.
Members are entitled to an insurance claim of Rs. 6,000 to Rs. 25,000
in case of partial disability depending on the age of the member. An
amount of total disability gratuity payment from Rs. 12,000 to Rs.
50,000 according to the age of the member or pension payment from the
date of total disability will be granted. When a member dies before he
/she becomes entitled to a pension, a gratuity ranging from Rs. 6,000 to
Rs. 35,000 will be paid to the dependent based on the member's age at
the time of death.
The eligibility for enrolment as a contributor is the applicant
shouldn't be less than 18 years and not be more than 59 years and is not
a contributor to agricultural pension schemes or fisheries pension
scheme or any such pension schemes of the Government.
SLSSB has been able to achieve significant success in the operation
of pension schemes in the past. The number of enrolments are over
325,000 and around 6,000 monthly pension payments are being made to
members.
The activities of the SLSSB have been extended to almost all the
districts and divisional secretariats except Kilinochchi, Mullativu and
Mannar.
The aim of SLSSB will be "pension benefit for all Sri Lankan
citizens" according to the Mahinda Chinthana.
Those interested in joining this scheme may contact the Social
Service Officer of the respective Divisional Secretariat.
(The writer is Secretary, Social Services and Social Welfare
Ministry)
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