Social Security Programs Throughout the World: Asia and the Pacific, 2002

Sri Lanka

Exchange rate: U.S.$1.00 equals 96 rupees.

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1958.

Type of program: Provident fund system.

Note: This information is from 1999.

Coverage

Employed persons.

Exclusions: Family labor and employees covered by approved private provident funds.

Special pension system for public-sector and local government employees.

Source of Funds

Insured person: 8% of earnings; additional voluntary contributions.

Employer: 12% of payroll.

Government: None.

Qualifying Conditions

Old-age grant: Age 55 (men) or 50 (women) and retirement from covered employment. The grant is also payable at any age if emigrating permanently.

Early payment: For employed women who marry or if the government closes the place of employment.

Disability grant: Permanent and total incapacity for work.

Survivor grant: Death prior to retirement.

Old-Age Benefits

Old-age grant: A lump sum equal to total employee and employer contributions, plus interest.

Permanent Disability Benefits

Disability grant: A lump sum equal to total employee and employer contributions, plus interest.

Survivor Benefits

Survivor grant: A lump sum equal to total employee and employer contributions, plus interest. The grant is payable to the legal heir or named beneficiary.

Administrative Organization

Ministry of Labor provides general supervision.

Department of Labor in the Ministry of Labor administers the program through district offices.

Central Bank of Sri Lanka is responsible for the custody and investment of the financial assets of the Employees' Provident Fund and for the payment of grants certified by the Commissioner of Labor.

Sickness and Maternity

Regulatory Framework

Medical care is available free of charge in government health centers and hospitals.

Plantations have their own dispensaries and maternity wards and must provide medical care for their own employees.

Sickness and Maternity Benefits

Maternity benefit: Employees in the plantation sector and certain wage and salary earners are entitled to 84 days of maternity leave before or after childbirth for the first two childbirths and 42 days for subsequent childbirths. Factory employees receive 72 days' paid maternity leave for the first two childbirths and 36 days' paid leave for subsequent childbirths. Employed women covered under the Shop and Office Act get 84 days' paid maternity leave for the first two childbirths and 42 days' paid leave for subsequent childbirths.

Administrative Organization

Department of Labor is responsible for the program.

Work Injury

Regulatory Framework

First law: 1934.

Current law: 1990.

Type of program: Employer-liability system and voluntary insurance.

Coverage

All workers.

Exclusions: Members of the police and armed forces.

Source of Funds

Insured person: None.

Employer: Total cost, met through the direct provision of benefits or insurance premiums. Premiums range from 1% to 7.5% of payroll, according to the assessed degree of risk.

Government: Cost of medical care.

Qualifying Conditions

Work injury benefits: A minimum 3-day qualifying period for temporary disability.

Temporary Disability Benefits

50% of wages after a 3-day waiting period, for up to 5 years.

The maximum monthly benefit is 5,000 rupees.

Permanent Disability Benefits

Permanent disability grant: The minimum grant is 21,168 rupees. The maximum grant is 250,000 rupees.

Partial disability: A lump sum ranging from between 30% and 100% of compensation.

Workers' Medical Benefits

Provided in government hospitals free of charge.

Survivor Benefits

Survivor grant: A lump sum of between 2 and 5 years of the insured's wages, varying inversely according to wage class. The grant is distributed among dependent relatives.

The minimum grant is 19,404 rupees.

The maximum grant is 250,000 rupees.

Administrative Organization

Ministry of Labor and Vocational Training provides general supervision.

Department of Workmens' Compensation administers the program.

Unemployment

Regulatory Framework

Type of program: Social assistance system (see Family Allowances, below).

Family Allowances

Regulatory Framework

First law: 1990.

Current law: 1995.

Type of program: Social assistance system.

Note: The program is being implemented in stages.

Source of Funds

Insured person: None.

Employer: None.

Government: Total cost.

Qualifying Conditions

Family allowances: Family earnings are below 1,000 rupees a month.

Family Allowance Benefits

The family allowance is 500 rupees a month.

Administrative Organization

Ministry of Samurdhi, Youth Affairs, and Sports.

Commissioner of Poor Relief.