Sri Lankans who are working in various companies in India are required to contribute to the Social Security Fund of India. It is also mandatory for Indians working in various companies in Sri Lanka to become members of the Employees Provident Fund and the Employees’ Trust Fund.
Indians who are working in Sri Lankan companies are entitled to their contributions and interest thereon upon termination of service, but Sri Lankans who are working in Indian companies are entitled to contributions credited to the Social Security Fund of India under the existing law as they are of age 58 After completion. Accordingly, Sri Lankans who return to the motherland to work in India later face serious practical difficulties in obtaining the money. Labor offices regularly receive complaints in this regard.
In view of these complaints, the Ministry of Labor has decided to grant membership to the Sri Lanka Employees Provident Fund and the Employees’ Trust Fund to Sri Lankans working in Sri Lankan-owned factories and workplaces in India, protecting the rights of these employees.
The Sri Lankan government has decided to sign a social security agreement with India for this purpose, said Labor Minister Nimal Siripala de Silva.
According to the agreement to be signed, Sri Lankans who have gone to work for institutions in India will no longer be required to contribute to the Social Security Fund. Also, Indians working in various institutions in Sri Lanka will no longer be required to register with the Employees Provident Fund and the Employees’ Trust Fund. Their contributions are credited directly to the Social Security Fund of India. He further said that Indians are currently exempted from contributing to the Social Security Fund of India when working abroad.
The signing of this agreement will provide relief to nearly tens of thousands of Sri Lankans who have worked in various institutions in India.
Accordingly, preliminary drafts are being prepared to amend the Employees Provident Fund Act No. 15 of 1958 to enable the signing of a Social Security Agreement between Sri Lanka and India and the draft is due to be tabled in Parliament soon.
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