| (1) |
Do every Employer has to pay ETF?
|
| |
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.
|
|
(2) |
Are
their any other occasions that the employers are exempted
for paying ETF? |
|
|
| Yes |
| Ex : |
| (a) |
Enterprises which comprises of
only family members. |
| (b) |
Companies when Partners/Directors are the
only employees. |
|
|
| (3)
|
What
is the ETF contributions percentage and do the employers
has to pay the contribution monthly? |
|
|
The ETF contributions percentage is
3%. Every employer has to pay their ETF
contributions monthly on behalf of their employees. |
|
(4) |
Is
the Employer legally bound to pay contributions for
following people? |
|
|
|
(a)
|
Pensioned people employed in your business. |
|
(b)
|
Students above 14 years of age who
work after school hours. |
|
(c)
|
People who work in your company as well as in
another at the same time. |
|
(d)
|
People who rotates or migrate from one place of
work to another. |
|
(e)
|
Contract workers. |
|
(f)
|
People who have obtained a refund and re-employed.
|
|
(g)
|
Expatriate employees. |
|
(h)
|
Casual / Piece-rate, Trainees, etc |
|
|
|
Yes. The employer is liable to
contribute to ETF for the above persons. |
|
(5) |
How
to register at ETF to pay the contributions? |
|
|
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. |
|
(6) |
Can employers deduct ETF contributions
from the employees monthly earnings?
|
|
|
No |
|
(7) |
How
should the contributions be calculated? |
|
|
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 : |
|
|
|
(a)
|
Salary, Wages or Fees |
|
(b)
|
Cost of Living allowance, Special Living allowance
and other similar allowances |
|
(c)
|
Payment with respect of to holidays |
|
(d)
|
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) |
|
(e)
|
Food allowance |
|
(f)
|
Any other kinds of remuneration that may be
specified |
|
(g)
|
Payments in the form of discounts (commissions),
piece-rate payments and contract basis payments |
|
| (8)
|
How
can contributions to be paid and what document do I need
to submit when making contributions? |
|
|
| The ETF has two (02) categories of
employers. |
|
(a)
|
Larger category (employers employing
more than 15 employees) |
|
(b)
|
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.
|
|
|
(9) |
What are the payment Modes?
|
|
|
| Manual Mode |
-
Remitting payments by
cheques, cash or Money Orders |
| Electronic Mode |
- Through Internet
|
|
|
(10) |
When is the last date to pay contributions? |
|
|
Employer must pay their monthly ETF contributions on or
before the last working day of the succeeding
month.
|
|
(11) |
Are
their any penalty for the delayed payments? |
|
|
Yes. 5% to 50% surcharge must pay
according to the delay as follows :- |
|
|
|
5%
|
-
|
for a delay not exceeding 10 days |
|
15%
|
-
|
for a delay between 11 days to 01 month |
|
20%
|
-
|
for a delay between 01 to 03 months |
|
30%
|
-
|
for a delay between 03 to 06 months |
|
40%
|
-
|
for a delay between 06 to 12 months |
|
50%
|
-
|
for delay exceeding 12 months |
|
|
(12) |
How
to produce employee details to the employers making
remittance by “R1”? |
|
|
The every employer paying
contributions by “R1” (larger category) must
provide half-year returns as follows : |
|
|
| 1st half |
-
|
on or before the 31st of August |
| 2nd half |
-
|
on or before the 28th of February (following year)
|
|
|
|
If not a 1% of surcharge must pay for
each delayed month on the face value of the return by the
employers. |
|
(13) |
How to draw a cheque for ETF
payment and where to send?
|
|
|
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. |
| (14)
|
What are the benefits to the
employers by making ETF contributions payments through
internet? |
|
|
| (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. |
|
|
(15) |
When the employer start making
contributions for a new employee?
|
|
|
You should ensure that the new employee
is enrolled in to the ETF immediately. The employer
must remit the contributions from the 1st salary. |
