Sri Lanka pension bill put on hold
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Sri Lanka pension bill put on hold

Last Updated: Thursday, April 28, 2011, 00:06     A- A A+
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Sri Lanka pension bill put on hold Colombo: The Sri Lankan government on Wednesday postponed the parliamentary presentation of a controversial pensions bill concerning private sector employees.

The chief government whip and minister Dinesh Gunawardena told parliament that in view of the court action filed, the presentation of the bill and three further enactments were being delayed.

Parliament was to debate the Employees Pension Benefits Fund Bill and the Overseas Employment Pension Benefits Fund today.

But the trade unions filed action in the Supreme Court claiming the bills were inconsistent with the constitution.

Trade unions and employers have objected to the laws which make it mandatory for both the employer and the employee to pay two per cent of the monthly gross salary to the Fund while ten per cent of the gratuity payable at the termination of employment must also go to the Fund.

At the age of 60, employees would receive 15 per cent of their monthly salary as a pension for contributions made for 10 to 19 years.

Although the government has tried to make out the new scheme as an addition the trade unions remain unconvinced. The unions want more consultations to weed out dangerous provisions.

They held talks with President Mahinda Rajapaksa yesterday but the deliberations were inconclusive.

PTI

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First Published: Thursday, April 28, 2011, 00:06

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