• Meeting on 21 January to explore feasibility and global best practices
• Plan aims to provide long-term financial security and prevent misuse of lump-sum EPF payouts

The National Labour Advisory Council (NLAC) is scheduled to meet on 21 January 2026 to discuss in detail the possibility of introducing a system where private sector employees entitled to the Employees' Provident Fund (EPF) would receive the fund as a pension, Secretary to the Ministry of Labour, S.M. Piyatissa said.

In response to a query by The Daily Morning, he said yesterday (08) that the proposal to pay the EPF as a pension had been under consideration for a long time, but needed to be discussed thoroughly with the members of the NLAC, and awareness would be created among them regarding the feasibility of the scheme. Rather than providing the EPF in a single payment, he said that the amount would be paid as a pension.

He added that employees would be offered a choice to receive a part of their EPF as a pension rather than a lump sum. “It’s a system that is practiced in several parts of the world,” he noted.

Piyatissa observed that many employees retiring at the due age often face difficulties managing a large sum of money. “Many get caught up in pyramid schemes or invest in a business, or purchase a three-wheeler or similar vehicle, which would be of little value to them. The proposal is to pay part of the sum as EPF and the remaining amount as a pension, to prevent employees from ending up in situations where they don’t even have money for essential expenses such as medicines,” he said.

The Secretary also noted the expertise of the International Labour Organisation (ILO), the Employees Federation, and some trade unions familiar with the mechanism would be sought to ensure the scheme is effectively implemented.