800,000 employees to benefit:

Private sector Pension Bill in House next month

by Ananda KANNANGARA

The Government will introduce next month the much-awaited private sector pension scheme which will benefit over 800,000 employees.

Referring to President Mahinda Rajapaksa’s recent statement on the proposed pension scheme in Parliament, Labour Minister Gamini Lokuge told the Sunday Observer that the Bill will be presented in Parliament next month.

The working class in the country will be provided a permanent income for life after retirement under this scheme. “Although the private sector pension scheme issue was discussed with trade unions in the past, it would definitely be introduced this time in keeping with the Mahinda Chintana concept, he said.

Minister Lokuge said that although Government sector employees are paid 85 percent of the salary they received at the time of their retirement, private sector employees are paid only 30 percent of their last salary as pension.

Minister Lokuge said unlike public servants, private sector employees enjoyed numerous perks, such as Employees’ Provident Fund (EPF), Employees’ Trust Funds (ETF), bonuses, cost-of-living, entertainment allowance and transport allowances and they need not bother over the 30 percent pension.

He said the current EPF fund exceeds Rs. 750 billion and a new scheme has already been implemented to pay an annual interest of 13.75 percent on EPF balances.

In addition, low interest loan facilities will be granted for EPF holders to construct houses and purchase lands, start self-employment projects and also for their children’s education.

“We have deployed trained labour officials to crack down on errant employers who do not adhere to labour laws for EPF deductions,” he said.