It is proposed that private sector employees, upon retirement, will receive their EPF as a monthly pension instead of a lump sum payment.

The National Labour Advisory Council (NLAC) is scheduled to meet on January 21st to extensively discuss the proposal to provide the currently operational Employees' Provident Fund (EPF) as a pension for private sector employees. S.M., Secretary of the Ministry of Labour,

Piyathissa stated that they expect to have a detailed discussion on the feasibility of implementing this mechanism and related global practices. Although this proposal has been under consideration for a long time, the Secretary pointed out that it is essential to discuss it in depth with the members of the National Labour Advisory Council and make them aware.

Explaining the proposal to pay Employees' Provident Fund benefits as a pension instead of a lump sum, the Secretary stated that it is intended to give employees the option to receive a portion of the fund as a pension. He further mentioned that this is a system already successfully implemented in many countries worldwide, and it proposes to give employees the choice to receive a portion of the fund as a lump sum and the remainder as a monthly pension, according to their preference.

Mr. Piyathissa has observed that employees often fail to properly manage the large sum of money they receive at retirement age. He pointed out that many face difficulties due to falling victim to pyramid schemes, investing in unsuccessful businesses, or purchasing depreciating assets like trishaws. This new mechanism will be crucial in preventing such situations and ensuring a stable income source to cover essential expenses like medication during retirement.

The Secretary of the Ministry of Labour further emphasized that they expect to obtain expert contributions from the International Labour Organization (ILO), the Employers' Federation, and trade unions with knowledge in this field to successfully implement this program.