Common database to simplify EPF payments

Sanjeevi JAYASURIYA

The Labour Department and the Central Bank will introduce a complete and accurate common database to simplify the procedure in obtaining Employees Provident Fund (EPF) money.

“Members face numerous difficulties at the time of withdrawing EPF money. The system to be introduced shortly will help to overcome these difficulties and to provide an efficient service,” Labour Commissioner (EPF) W.D.S.C. Weliwatte said.

The National Chamber of Commerce conducted a seminar on EPF and ETF and related issues on Tuesday at the Chamber auditorium.

The system will be operated using the member NIC number as a unique identification number to enable fast processing of fund releasing. The members are entitled for pre-retirement withdrawal for housing and medical, insurance scheme.

The present system is faced with the issue of lack of employer centric administration, multi accounts for a member and differences in names, and having numbers in two databases with the Central Bank and the Labour Department.

Members could claim EPF on the grounds of maturity of fund, migration, marriage (only for women), on medical grounds, VRS, CRS or privatization of public business, going for a pensionable job and death of a member.

Males over 55 years and females over 50 years are entitled to withdraw their EPF benefits.

There are institutions that are not required to pay EPF. It includes social service institutions where industrial training is provided for youthful offenders, the destitute and the blind and the deaf.

A charitable institution employing less than 10 employees is also exempted.