Labour Dept calls for representation on Central Bank’s Monetary Board for EPF decision-making

During a recent session of the Sectoral Oversight Committee on Foreign Employment and Labor in parliament, Department of Labor officials raised concerns about the exclusive decision-making authority of the Central Bank’s Monetary Board over the Employees’ Provident Fund (EPF). Emphasizing the need for the Labor Department’s representation on the Monetary Board, parliament sources said.

The Committee, convened at the parliamentary complex, primarily addressed the significant contribution of informal sector employees to the EPF. Discussions highlighted that approximately 60% of individuals employed in the service sector operate within the informal economy. The committee underscored that channeling contributions to the EPF from this sector could substantially enhance social security provisions for these workers.

Committee revelations unveiled that presently, around eighty thousand organizations are registered with the Department of Labor for EPF payments. However, the Committee Chairman expressed concerns over the insufficient number of registered companies and directed the Department to establish a comprehensive system to identify unregistered entities liable for employee welfare fund contributions.

Under the leadership of SJB MP Hector Appuhami, the Sectoral Oversight Committee on Foreign Employment and Labor convened at the Parliamentary complex. Labor Department officials informed the committee about the initial steps taken towards digitizing their operations. They disclosed plans for implementing a digital platform known as the National Labor Market Information System to collect labor market-related data efficiently.

Discussions within the committee highlighted challenges arising from discrepancies between the Department of Labor’s and the Central Bank’s methodologies. Members recognized potential obstacles in accessing funds and stressed the necessity of devising a more accurate system for inputting membership information.

The session was attended by MPs including Gamini Lokage, Faisal Kasim, Kapila Athukorala, SM Marikkar, Ishaq Rahman, Sahan Pradeep Withana, and Vadivel Suresh.