EPF Act to be amended

By Franklin R.Satyapalan

Minister of Labour Gamini Lokuge yesterday said that since Cabinet approval had been obtained to grant 30 per cent of the funds lying to the credit of an employee as a loan, a Bill would be tabled in Parliament to amend the Employees’ Provident Fund (EPF) Act no-15 of 1958.

The Minister said the amendment would be included in the Order Book when Parliament met on Tuesday (19).

Meanwhile, Superintend of EPF Rupa Dheerasinghe said that once the amendment was passed in Parliament the Central Bank and Department of Labour would jointly issue guidelines.

In the past, the Labour Department issued letters to the banks confirming the balance lying to a member’s credit to help him or her obtain housing loans. Some employees stopped paying back loans, which backs deducted from their EPF at penal interest rates.

"That was why the government decided that an employee should be given 30 per cent funds to his or her credit as a loan for housing and medical purposes at zero interest," Dheerasinghe said.

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