EPF accounts under NIC numbers now

New system to streamline payments:

Harshini Perera

The accounts of Employees Provident Fund (EPF) members will be re-registered by using the National Identity Card (NIC) number. This process is conducted in collaboration with the Labour Relations and Manpower Ministry and the Central Bank of Sri Lanka.

Central Bank Governor Ajith Nivard Cabraal and Labour Relations Minister Gamini Lokuge and Ministry Secretary Mahinda Madihahewa at the launch.

The new system of using the NIC number for EPF accounts will reduce fraud and delays in repayments for EPF members at the maturation date of their accounts.

The new system will be employee centred whereas it was employer centred earlier, Labour Relations and Manpower Ministry Secretary, Mahinda Madihahewa said at the awareness program for the re-registration of EPF accounts with NIC numbers yesterday.

He said there are 2.2 million active EPF accounts which accounts for Rs 850 billion funds at the Central Bank.

The Labour Relations and Manpower Ministry is in the process of making 12 million inactive accounts to be active.

There are five projects operating under the EPF and a system will be developed to use the customer finger print for security measures. The finger print system has already been introduced to the Western Province that will later be introduced to the rest of the provinces.

Under the five programs, a smart card system will be introduced to check balance and get the details of the EPF accounts. This has been introduced with a banking model in mind for EPF accounts.

“We have introduced a de-centralized system for EPF members to access the refund process easily. The members do not need to come to Colombo and the repayment services can be accessed through the 32 district offices around the country,” he said.

In the hope of accelerating the EPF collection process the Labour Relations and Manpower Ministry is monitoring the process in depth under the five projects.

“We expect to bring the EPF level to Rs 1000 billion at the end of December this year as the target for this year. The current interest rate paid for EPF accounts is 13.75 and many customers face delays in getting the repayment of EPF accounts,” Madihahewa said.