The government is formulating a mechanism to allow private sector employees entitled to the Employees’ Provident Fund (EPF) to receive their benefits as a pension instead of a one-time lump-sum payment, Deputy Minister of Labour Mahinda Jayasinghe said in Parliament today.
The Deputy Minister noted that the EPF was introduced to ensure the social security of employees after retirement. However, he warned that the long-term financial security of private sector employees could be at risk when EPF benefits are withdrawn in a single instalment.
Jayasinghe said the government is paying close attention to introducing a pension-style system that would enable private sector employees to receive a steady income throughout their retirement, similar to existing pension schemes.
