Vasu welcomes private sector pension scheme

Hemanthi Guruge

National Language and Social Integration Minister as well as veteran trade union leader Vasudeva Nanayakkara said yesterday that the proposed private sector pension scheme is a great step taken by the government for the benefit of a large number of private sector employees. “We welcome and we are waiting for this,” he said.

He was addressing the press at his Ministry. The Minister said that they are waiting for the amendments and they will be discussed with trade unions later.

According to the proposed private sector pension scheme the private sector employees will be made secure just like the state sector workers. “The government will not touch the EPF or ETF of private sector employees; some political parties disagreed when introducing the state sector pension scheme as well, he said.

“Employer and employees would each have to contribute two percent to the new pension scheme proposed by the government. The employer will have to contribute two percent to the pension scheme and it will be a huge amount of money . Therefore many of employer’s unions oppose the proposed private sector pension scheme, he said.

“In addition to that, 10 percent of the gratuity will be added to the fund. The government had decided to allocate Rs 1,000 million for this pension scheme.

Employees who work for 10 years are entitled to a pension.

The minister also said that the government will take measures to protect the fund.