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The
Employees
Trust
Fund
was
established
on
1st
March
1981
under
the
provisions
of
ETF
Act
No.
46
of
1980.
The
Fund
is
administrated
by
the
Employees’
Trust
Fund
Board
and
at
present
the
ETF
Board
is
functioning
under
Hon.
Prime
Minister
Mahinda
Rajapaksa
of
the
Ministry
of
Finance,
Economy,
and
Policy
Development.
The
provisions
of
the
Act
shall
apply
to
every
state
&
private
sector
undertaking
belonging
to
any
class
or
category
of
state
or
private
sector
undertaking
as
is
specified
in
an
order
made
by
the
Hon.
Minister
and
published
in
the
Gazette.
Self-employed
persons
and
migrant
workers
also
could
contribute
to
the
Fund
on
their
own
and
obtain
membership.
At
present
the
active
membership
of
the
fund
is
approximately
2.6
Million
and
covered
by
79,000
employers.
The
value
of
the
members
fund
was
about
Rs.
339
Billion
as
at
31st
December
2019.
To
decentralize
the
ETFB
activities
and
to
provide
a
better
service
to
its
members
the
ETFB
introduced
a
Branch
Network
in
1995.
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ETF
Act
and
the
Amendments
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Amendments
to
the
Principal
Act
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Act
No.
3
of
1982
(Changes
of
Surcharges
etc.)
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Act
No.
47
of
1988
(Regarding
nominees,
contributions
by
migrant
workers,
definitions
of
earnings
etc.)
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Act
No.
18
of
1993
(Regarding
surcharges
for
delayed
returns
etc.)
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Act
No.
19
of
1993(Special
Provisions)(Removal
of
Section
97(a)
of
the
university
act.
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Gazette
Notifications
issued
under
the
Act
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No.
121
in
26/12/1980
Gazette
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No.
121/3
in
30/12/1980
Gazette
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No.
125
in
23/01/1981Gazette
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No.
127/3
in
09/02/1981
Gazette
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No.
154/8
in
18/08/1981
Gazette
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No.
171/2
in
14/12/1981
Gazette
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No.
688/50
in
15/11/1991
Gazette
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No.
979/2
in
19/06/1997
Gazette
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(Change
of
the
Ministry
from
the
Ministry
of
Labour
to
the
Ministry
of
Finance)
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The
Objectives
of
the
Board
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(a)
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to
promote
employee
ownership,
employee
welfare,
economic
democracy
through
participation
in
financing
and
investment;
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(b)
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to
promote
the
employee
participation
in
management
through
the
acquisition
of
equity
interest
in
enterprises;
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(c)
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to
provide
for
non-contributory
benefit
to
employees
on
retirement;
and
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(d)
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to
do
all
such
other
acts
or
things
as
may
be
necessary
for,
the
objectives
specified
in
paragraphs
(a),
(b)
and
(c)
above.
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Employees
covered
by
the
ETF
Act
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All
employees
in
Public
&
Private
Sector
institutions
are
covered
by
the
ETF
Act.
This
includes
any
person
employed
on
a
casual,
temporary,
contract
or
piece-rate
basis
and
also
any
apprentice
or
learner
who
is
paid
a
remuneration,
irrespective
of
age.
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Self-employed
persons
and
migrant
workers
also
may
become
members
of
this
fund
and
contribute
voluntarily
on
monthly
basis.
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Employees
in
the
following
categories
are
not
covered
by
the
ETF
Act
(Extraordinary
Gazette
No.
171/2
of
14/12/1981)
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Domestic
servants
in
any
household.
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Charitable
institutions
with
less
than
10
employees.
If
the
no.
of
employees
is
over
10
such
institutions
are
liable
to
pay
from
01/12/91.
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Institutions
giving
industrial
training
to
orphans,
deaf,
dumb
and
blind
persons.
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Institutions
carried
on
by
family
members
(family
the
spouse
and
children
of
such
person)
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Employers
covered
by
the
ETF
Act
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All
employers
in
public
sector
institutions
whose
employees
are
not
eligible
to
the
Govt.
Pension
Scheme.
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All
employers
in
the
private
sector
irrespective
of
the
no.
of
employees
employed.
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All
employers
in
public
and
private
sector
who
are
maintaining
approved
Provident
Fund
accounts
for
their
employees.
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Definition
of
Employer
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“Employer”
means
any
person
who
employs,
or
on
whose
behalf
any
other
person
employs
any
workman
and
includes
a
body
of
employers
(whether
such
body
is
a
firm,
company,
corporation
or
trade
union)
and
any
person,
who
on
behalf
of
any
other
person
employs
any
workman,
and
includes
a
competent
authority
of
a
business
undertaking
vested
in
the
Government
under
any
written
law,
the
legal
heir,
successor
in
law,
executor
or
administrator
and
liquidator
of
a
company,
and
in
the
case
of
an
unincorporated
body
the
president
or
the
secretary
of
such
body,
and
in
the
case
of
a
partnership
the
managing
partner
or
manager.
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Definition
of
Employee
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“Employee”
means
any
person
who
has
entered
into
or
works
under
a
contract
with
an
employer
in
any
capacity,
whether
the
contract
is
expressed
or
implied
or
orally
or
in
writing,
and
whether
it
is
a
contract
of
service
or
of
apprenticeship
or
a
contract
personally
to
execute
any
work
of
labour
and
includes
any
person
ordinarily
employed
under
any
such
contract,
whether
such
person
is,
or
is
not
in
employment
at
any
particular
time.
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Types
of
Earnings
covered
by
the
ETF
Act
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“Earnings”
is
same
as
defined
in
the
Employees’
Provident
Fund
Act
(Section
47)
when
calculating
ETF
the
following
payment
and
allowances
will
be
considered.
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wages,
salary
or
fees
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cost
of
living
allowance,
special
living
allowance
and
other
similar
allowance
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payment
in
respect
of
holidays;
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the
cash
value
of
any
cooked
or
uncooked
food
provided
by
the
employer
to
employees
in
prescribed
employments
and
any
such
commodity
used
in
the
preparation
or
composition
of
any
food
as
is
so
provided,
such
value
being
assessed
by
the
Employer
subject
to
an
appeal
to
the
Commissioner
whose
decision
on
such
appeal
shall
be
final;
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Meal
allowance
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such
other
forms
of
remuneration
as
may
be
prescribed.
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Registration
of
Employers
with
the
ETF
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Unlike
EPF,
ETF
has
no
registration
procedure
prior
to
making
contributions.
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The
first
and
foremost
obligation
of
any
employer
who
has
started
a
business
and
recruited
his
1st
employee
is
to
register
the
business
with
the
Commissioner
General
of
Labour
and
obtain
a
registration
Number
for
the
employment.
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On
receipt
of
the
Registration
Number
from
the
Labour
Department
the
employer
must
either
write
or
personally
call
over
at
the
ETF
Office
and
obtain
the
relevant
forms
and
instructions
to
make
payments
to
the
ETF.
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Once
the
1st
contribution
is
received
at
the
ETF
Board
that
employer
will
be
entered
in
the
‘‘Contributing
Employers
List’’
in
the
ETF.
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Employers
who
are
contributing
to
approved
Provident
Funds
are
given
separate
Numbers
from
the
ETF.
Such
employers
should
quote
that
Number
in
all
monthly
remittance
forms
half
yearly
returns
and
other
correspondences.
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Assigning
of
Numbers
to
members
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It
is
the
responsibility
of
the
employer
to
assign
numbers
to
his
employees.
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Under
no
circumstances
a
number
once
given
to
an
Employee
should
be
allocated
to
another
employee
even
if
such
employee
has
left
the
organization.
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If
an
employee
who
has
resigned
rejoins
the
same
company
after
obtaining
the
ETF
refund
should
be
given
a
new
number.
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Contribution
Procedure
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Contributions
are
due
from
employers
at
the
rate
of
3%
of
every
employee’s
monthly
total
earnings.
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No
employer
shall
deduct
from
the
earnings
of
an
employee
any
sum
which
that
employer
is
liable
to
pay
as
contribution
or
surcharges
to
the
ETF.
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Contributions
due
for
a
particular
month
should
be
paid
on
or
before
the
last
day
of
the
succeeding
month.
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All
remittances
should
be
sent
under
cover
of
an
Advice
of
Remittance
Form
R1
or
R4.
Advice
of
Remittance
Form
R1
is
meant
to
be
used
by
employers
employing
15
or
more
employees
and
Advice
of
Remittance
R4
by
employers
having
less
than
15
employees.
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Employers
using
R4
forms
(Smaller
Category)
should
convert
to
use
R1
forms
(Larger
Category)
when
the
number
of
employees
is
increased
to
15
or
above
in
the
organization.
As
the
accounting
procedure
for
larger
category
employers
is
different
from
that
of
smaller
category
employers,
employers
presently
using
R4
forms
should
write
to
Finance
Manager(Revenue)
before
switching
over
to
R1
form.
However
employers
who
are
making
payments
with
R1
forms
should
continue
the
same
procedure
even
though
the
number
of
employees
subsequently
falls
below
15.
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The
procedure
of
making
remittances
to
the
ETF
is
set
out
briefly
on
the
reverse
of
the
R1/R4
forms.
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Only
the
employers
who
are
making
contributions
with
R1
forms
are
required
to
submit
individual
contribution
details
in
half
yearly
Form
II
return.
These
details
will
be
submitted
by
employers
under
smaller
category
in
the
R4
forms
sent
every
month.
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Page
totals
of
Form
II
sheets
should
be
entered
in
the
summary
sheet
and
the
totals
of
summary
sheet
should
be
carried
forward
to
the
employer’s
contributions
reconciliation
statement
where
monthly
contribution
details
should
be
shown.
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Employers
who
are
preparing
separate
Form
II
returns
for
clerical,
permanent
and
executive
staff
or
each
work
site
located
island
wide
should
ensure
that
the
returns
from
all
those
units
are
collected
at
the
employers
Head
Office
and
sent
as
one
batch
according
to
the
serial
number
of
the
employees
to
the
ETF
Office.
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Entering
National
Identity
Card
Numbers
of
all
the
members
in
the
Form
II
Returns
and
R4
forms
correctly
and
legibly
is
a
must.
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Complete
and
accurate
Form
II
Returns
should
be
sent
to
Manager
(Member
Accounts),
ETF
Board,
1st
Floor,
Labour
Secretariat,
Colombo
05
before
the
due
date
as
shown
below
:
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| 1st
half
of
the
year
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-
On
or
before
31st
August
of
the
same
year
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2nd
half
of
the
year
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-
On
or
before
end
of
February
of
the
following
year
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