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Companies cannot delay EPF citing pandemic

29 Jul 2021

  • Labour Dept. adopts tough stance 
  • Leeway only for first wave of Covid
By Imsha Iqbal The Department of Labour says that no companies are permitted to delay their Employees’ Provident Fund (EPF) payments citing the new wave of the pandemic. The Department provided leeway for companies last year during the first wave to delay their EPF remittances considering the financial difficulties of businesses. Speaking to The Morning Business, Commissioner General – EPF Division D.P.K.R. Weerakoon stated yesterday (28) that the delay of EPF payments was provided only for the period of three months, from March to May, as it was informed. He further said that while it was allowed due to the pandemic, it did not, however, get extended further under any circumstances, even though the pandemic prevails till this day, implying that despite the pandemic, the companies cannot delay EPF payments. “No changes have taken place in this (delay of the EPF) regard. They (the companies) were given a grace period of six months,” he said, adding that if a particular company is not able to pay the EPF for the month of March, following a six-month period, it needs to be paid. The Department of Labour decided to provide a relief measure of permitting certain companies to delay the payment of EPF for employees, on the request of Employers’ Federation of Ceylon (EFC), Director General and Chief Executive Officer (CEO) Kanishka Weerasinghe, due to the fact that companies were running on low capital with the impact of the existing Covid-19 situation. Accordingly, then Commissioner General of Labour R.P.A. Wimalaweera responded positively to the request made by the EFC Director General, considering the health and economic crisis. Wimalaweera at that point said: “EPF surcharge exemptions will definitely be considered, but those are not the most important problems at the moment. What is important at the moment is whether or not employees will get their salaries. However, if and when a company applies to the Commissioner General, if it can justify the delay and prove that it was for reasons beyond its control, they will definitely get relief. That is being considered at the moment.” The EPF was established under the Act No. 15 of 1958, and in accordance with the EPF Act, an employee is required to contribute a minimum of 8% and the employer a minimum of 12%, of the total earning of the employee’s monthly salary. The aim of the EPF is in order to assure the financial stability to employees in the retirement stage of life and to reward the employees for their role in the economic growth of the country.


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