Yes. All the employers in Government and Private Sector has to contribute to the ETF on behalf of their employees except the Government Department’s and the Local Government Authorities.
The ETF contributions percentage is 3%. Every employer has to pay their ETF contributions monthly on behalf of their employees.
|Pensioned people employed in your business.|
|Students above 14 years of age who work after school hours.|
|People who work in your company as well as in another at the same time.|
|People who rotates or migrate from one place of work to another.|
|People who have obtained a refund and re-employed.|
|Casual / Piece-rate, Trainees, etc|
Yes. The employer is liable to contribute to ETF for the above persons.
There is no special registration Scheme at ETF. The employers will automatically register with the ETF by paying their 1st contributions payment. But the employer must submit their EPF number when making payments. If any employer does not have a EPF number can contact Finance Manager (Contribution-Collection), (Tel. 011-2503911), 10th Floor, Labour Secretariat Bldg, Colombo 05 and obtain the relevant number for remitting their payments.
Unlike EPF the employers should not deduct the ETF contributions from employees earnings. The Employer must calculate 3% of ETF contributions on the employees total monthly earnings. The total monthly earnings should include the following :
|Salary, Wages or Fees|
|Cost of Living allowance, Special Living allowance and other similar allowances|
|Payment with respect of to holidays|
|The cash value of cooked or uncooked food supplied by the employer to the employee (The determination of such values will eventually be made by the Government of Labour)|
|Any other kinds of remuneration that may be specified|
|Payments in the form of discounts (commissions), piece-rate payments and contract basis payments|
|The ETF has two (02) categories of employers.|
|Larger category (employers employing more than 15 employees)|
|Smaller category (Employers employing less than 15 employees)|
When a larger category employer is remitting contributions must submit duly filled “R1” remittance form with the Cheque, Money Order or Cash payment. A smaller category employers must submit a duly filled “R4” remittance form with the cheque, Money Order or Cash payment. Please note that without the “R1” or “R4” remittance form, the ETF is not excepting the particular payments.
Employer must pay their monthly ETF contributions on or before the last working day of the succeeding month.
|Yes. 5% to 50% surcharge must pay according to the delay as follows :-|
|for a delay not exceeding 10 days|
|for a delay between 11 days to 01 month|
|for a delay between 01 to 03 months|
|for a delay between 03 to 06 months|
|for a delay between 06 to 12 months|
|for delay exceeding 12 months|
The every employer paying contributions by “R1” (larger category) must provide half-year returns as follows :
|on or before the 31st of August|
|on or before the 28th of February (following year)|
If not a 1% of the surcharge must pay for each delayed month on the face value of the return by the employers.
The cheques should be drawn in favour of "Employees' Trust Fund" and sent to Finance Manager (Contribution – Collection) 10th Floor, Labour Secretariat Bldg, Colombo 05. The employer can also hand over their ETF payments to the above address personally.
|(a)||Employer can pay their payments even in a holiday or at night.|
|(b)||No paper work is involving.|
|(c)||Larger category employers (Remitting ETF by “R1”) can submit their employee details (returns) monthly. Can upload these details through internet to their respective bank accounts. They can avoid sending of half-yearly return by filling forms etc.|
You should ensure that the new employee is enrolled in to the ETF immediately. The employer must remit the contributions from the 1st salary.