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. 

ETF Act and the Amendments

Principal Act Employees’ Trust Fund Act No. 46 of 1980 (certified on 29th Oct. 1980)

Amendments to the Principal Act

Gazette Notifications issued under the Act

The Objectives of the Board

Employees covered by the ETF Act

Employees in the following categories are not covered by the ETF Act (Extraordinary Gazette No. 171/2 of 14/12/1981)

Employers covered by the ETF Act

Definition of Employer

“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.

Definition of Employee

“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.

Types of Earnings covered by the ETF Act

“Earnings” is same as defined in the Employees’ Provident Fund Act (Section 47) when calculating ETF the following payment and allowances will be considered.

Registration of Employers with the ETF

Unlike EPF, ETF has no registration procedure prior to making contributions.
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.
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.
Once the 1st contribution is received at the ETF Board that employer will be entered in the ‘‘Contributing Employers List’’ in the ETF.
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.

Assigning of Numbers to members

Contribution Procedure

1st half of the year- On or before 31st August of the same year

2nd half of the year- On or before end of February of the following  year