Labour Minister holds discussion on proposed private sector retirement age

Friday, 25 December 2020 01:17 - - {{hitsCtrl.values.hits}}

Minister holds discussions with trade unions and EFC representatives
Says those wanting to retire at 55 years should be allowed, but 60 made mandatory age of retirement
Asserts EPF/ETF funds can be withdrawn by employees who choose to retire at 55 years
Points proposal to increase retirement age due to high life expectancy rates
EFC says employing workers after 55 years in some industries will be difficult
Trade unions, EFC can submit proposals to Labour Commissioner for amendments to law

Labour Minister Nimal Siripala De Silva

The Labour Ministry has initiated discussions with relevant stakeholders on the proposed amendments to the Employees’ Provident Fund (EPF) Act to increase the age of retirement in the private sector from 55 to 60 years.

The changes to the retirement age are in keeping with the Budget 2021 proposal presented by Prime Minister Mahinda Rajapaksa in his capacity as the Finance Minister in November.

The Labour Minister Nimal Siripala De Silva, who met with representatives of the Employers Federation of Ceylon (EFC) and trade unions to obtain their views on the move, said that even if the age of retirement is increased to 60, there should be room in the law for those who wish to retire at 55 to do so and obtain their EPF and ETF (Employees Trusts Fund) at that age whilst those who wish to continue till 60 years should also be allowed to do so. The Minister pointed out that life expectancy rates in the country have increased with the female rate at 76.6 years, while life expectancy for males is 72, and it is in keeping with this that the age of retirement is being increased. It is already 60 years in the State sector, the Minister said.

At the time of the adoption of the Employees’ Provident Fund Act, life expectancy for females had stood at 57.5 years and that of males at 58.8 years.

Trade Union representatives told the Minister that employees should have the right to retire at 55 years and obtain their provident funds while such funds can be released at 60 years to employees who wish to continue in service till that age.

The Employers Federation representative said that it agrees in principal with the proposed changes to the EPF Act, but pointed out that in certain trades, there are practical difficulties in retaining workers after the age of 55.

The EFC Director General Kanishka Weerasinghe said that terms of collective agreements, too, should be included in the proposed law.

The Minister said that trade unions and the EFC can forward their proposals to amend the relevant laws, and requested the Commissioner of Labour Prabath Chandrakeerthi to submit a report soon.

He said the proposals would be taken into consideration when the new bill is being drafted. (CK)