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Know About EPF

Cotents from Dialog Axiata Sri Lanka

Will the nature of appointment or status of an employee affect contributions to the EPF?

  • While the nature of employment or status is immaterial, employers have to make contributions to the provident fund in respect of employees who are permanent, non-permanent, temporary, apprentice, or casual.
  • Contributions to the Provident Fund should also be made for those who are employed on piece rate basis, contract basis, commission basis or unit (output) basis although the payments made by cash or a by any other form.


How should a business be registered in the Employees’ Provident Fund?

  • On recruitment of the first employee and before the expiry of 14 days, the employer must complete the “D” form in duplicate and post under registered cover.
  • This form should be posted to the Labour Office located closer to his business premises or directly to the Commissioner of Labour.
  • The Commissioner of Labour will promptly send to the employer a registered number.


Who will assign Employees’ Provident Fund number and how?

  • It is the responsibility of the employer to assign an Employees’ Provident Fund member number for his employees.
  • The member numbers must be allocated to the employees in numerical order, number 01 to the 1st employee and number 02 to the next and so on.


Who should pay Provident Fund contributions?

  • It is the responsibility of the employer.
  • It would not be a sound reason for the employer to shirk his responsibility by citing employee unwillingness or any other reason.
  • There are two portions,


Employees’ Contribution,

8% of the employee’s monthly earnings and this amount must be deducted from the employee’s salary.

Employer’s Contribution,

An amount equivalent to 12% of the employee’s monthly total earnings

Total Contribution 8% + 12% = 20%



Monthly Basic Salary for the Employee                     = Rs. 5,000

Employer’s Contribution                                             = Rs. 600

Employee’s Contribution                                            = Rs. 400


Total Contribution                                                       = Rs. 1,000


How should contributions be made?

  • A copy of a form called “C” form must be perfected in triplicate and the original copy should be posted under registered cover with a cheque or a money order for the total monthly contributions in favor of Superintendent, EPF.


How should you obtain a refund of contribution forwarded to the Fund in error?

  • For this purpose form “Q” should be perfected and forwarded to the district labour office situated in the locality of the establishment.
  • Then district labour office will forward the form “Q” to the accounts branch, EPF Labour Secretariat (Head Office) and after completion of necessary action; form “Q” will be forwarded to Superintendent, EPF for made the payment to the pertinent employer.
  • Request for refunds must be made within one year from the date of error payment.


What would be the loss incurred for failure to effect payment to Employees’ Provident Fund on due date

  • Employer will be liable for the payment of surcharge ranging from 5% to 50% for late payments.
  • Delay from day 01 to day 10 5%
  • Delay from day 10 to 01 month 15%
  • Delay from 01 month to 03 months 20%
  • Delay from 03 months to 06 months 30%
  • Delay from 06 months to 12 months 40%
  • Delay over 12 months 50%

Business Development Centre

Email: bdclead@bellmail.lk

Hotline: 011 7220980

© Dialog Axiata PLC - Sri Lanka

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Kishor Hameed  |  August 11, 2011