EPF bonanza

Parliamentary cors

The Government yesterday presented a Bill seeking to amend the Employees Provident Fund Act No 15 of 1958 to enable members of the fund to withdraw 30 percent of their savings to construct houses and pay medical bills.

The Employees Provident Fund (Amendments) Bill provides for any employee, who has contributed to the fund for less than 10 years to withdraw 30 percent of his or her savings to construct houses and pay medical bills.

Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena presented the Employees Provident Fund (Amendments) Bill on behalf of the Government to Parliament.

However, employees should have a minimum savings limit of Rs 300,000 to be eligible for withdrawal.

Members of the fund will be able to withdraw 30 percent of their savings twice to construct houses and pay medical bills.

Employees can withdraw money from the fund to construct a house, purchase a house, redemption of a mortgage on housing properties, and settle an outstanding balance of a housing loan.

Employees can also make withdrawals for medical reasons such as heart surgery, bypass surgery, treatment for cancer, kidney transplant, caesarian operation or hospitalization for not less than 14 days on account of an accident.

The new Bill also seeks to make provisions for the establishment of an insurance scheme and a pension scheme for the benefit of the members of the Fund.

Every member who wishes to join the pension scheme or the insurance scheme is required to contribute the prescribed amount.

The Bill will be taken up for debate in the House at a subsequent date. This will become law only after it is passed in House.