Labour Ministry in talks with WB and ILO to find avenues to fund proposed private sector pension scheme

The Labour Ministry has commenced discussions with the World Bank (WB) and International Labour Organisation (ILO) to find avenues to fund the proposed social security and pension scheme for the private sector employees.
“We are progressing on formulating a pension fund for private sector employees. However, it’s a complicated task. We are currently holding discussions with the WB and ILO to find funds for the scheme,” Labour Minister Nimal Siripala De Silva said at the opening of the new Regional Labour Office in Hatton, last Friday.

In Budget 2022, the government proposed to set up a new contributory fund for social security, with a Rs.140 billion capital for those who are not eligible for a pension. 

De Silva stressed on the need for a proper social safety net as exposed during the height of the COVID-19 pandemic. Although the government went into distribute Rs.5000 in cash allowances for affected families by the pandemic, De Silva noted that a permanent solution is needed.

 Meanwhile, De Silva revealed that his ministry completed the design of a pension scheme for the country’s migrant workers.

“We will present the proposed pension scheme for the migrant workers to the Cabinet of Ministers within days,” he added.

Further, he noted that a Cabinet memo has already been submitted to extend the EPF/ETF benefits to domestic housemaids and other domestic workers. De Silva stressed that it remains a top priority of the Labour Department.