Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 News Reports on Conversion of Employees’ Provident Fund Gratuity into a Pension Scheme: Statement by Minister of Labour

¶ 02 1. No decision has been taken to convert EPF into a pension-only model. 2. No actuarial valuation is required as no such decision has been taken. 3. Accordingly, no related need has arisen. 4. There is no such proposal. Any decision on EPF will be taken in consultation with the National Labour Advisory Council (NLAC) and relevant stakeholders. 5. EPF matters are regularly discussed at the NLAC; a special consultation on 21.01.2026 reached consensus to introduce a tripartite (employees–employers–Government) governance mechanism with technical experts for EPF oversight. 6. EPF assets as at 31.12.2025 were Rs. 4,965 billion (not Rs. 6 trillion). Once tripartite governance is established, decisions including investments will be under that mechanism, ensuring good governance and better asset use. Trade unions and employers have expressed dissatisfaction over EPF’s prior use in domestic debt restructuring without consultation. 7. No decision has been taken to remove benefits. Tripartite discussions focus on simplifying the 30 percent withdrawal process. 8. The Government is committed to consult trade unions and employers on policy and legislative reforms, evidenced by reactivating the NLAC in December 2024 and holding seven meetings in 2025 with several subcommittees.