Labour chief addresses concerns on EPF and private-sector retirement age
November 16, 2021 05:00 pm
No changes will be made to the Employees’ Provident Fund (EPF) Act despite extending the retirement age of private-sector employees, says the Commissioner-General of Labour, Prabath Chandrakeerthi.
The draft bill to extend the retirement age of private-sector employees to 60 years was recently passed in Parliament with amendments.
Following this development, many people have raised concerns regarding the Employees’ Provident Fund and possible changes to its Act.
Speaking to Ada Derana on the matter, the Labour Department’s chief explained that, in terms of the provisions of the EPF Act, the members of the Fund are eligible to claim their retirement benefits upon reaching the age of 55 years for males and 50 years for females.
If a person retires at the age of 55, withdraws the funds in their EPF account, and rejoins the company on contract basis, he can be entitled to the retirement benefits under a new registration number, for five years, he added.
The Employees’ Provident Fund was established under the EPF Act No.15 of 1958 (Act) as a mandatory defined contribution retirement scheme for the private and semi-government sector employees who do not enjoy pension benefits.
