Sri Lanka private sector employees to get new pension scheme

Sept 24, 2010 (LBO) – The Sri Lankan government plans to introduce a pension scheme for private sector employees soon, Gamini Lokuge, Minister of Labour Relations and Productivity Promotion, said. Lokuge also said the pension payments will be made up to the death of the recipient and their dependents will not be entitled to it. Both employees and employers will contribute two percent each of an employee’s salary to the new pension fund, he said.

The pension scheme for private sector workers will be announced in the next government budget expected in November.

Final details of the pension scheme are being worked out, Lokuge told, our sister news website.

The government will also make a contribution to the new pension fund.

“Right now the government’s contribution to the pension fund is being calculated,” Lokuge said.

Funds will also be drawn from an existing pension fund, the Employees’ Provident Fund, but these will later be returned to the EPF, Lokuge said.

Employees eligible for the new pension will be those who have completed over 10 years unbroken service in the private sector and contributed to the EPF.

Lokuge said the government’s aim is to