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Labour Department to crackdown on defaulters

Labour Department to crackdown on defaulters

05 Jan 2026 | BY Buddhika Samaraweera


  • Dept.'s online complaint mgt. system strengthened 
  • Complainants who provide contact info to be kept abreast of actions taken including formal notifications, recoveries, lawsuits, fines


The Department of Labour has strengthened its online complaint management system as part of its efforts to act against companies that fail to properly credit Employees’ Provident Fund (EPF) contributions, stated the Ministry of Labour. 

Speaking to The Daily Morning, Ministry Secretary, S.M. Piyatissa said that employees could now file complaints directly through the Labour Department’s website, adding that complainants who provide contact details would also be informed of the action taken against defaulting employers. “We are continuously taking action against such companies. If a complaint is made online, we follow it up and keep the complainant informed."

He added that the first step taken against defaulting companies is formal notification, and that officials then contact company representatives and engage with them directly to recover the outstanding payments. “If companies fail to pay despite these steps, we proceed with legal action. At the end of the case, they are required to pay the due amount along with a fine."


The Ministry of Finance recently informed Parliament that 22,450 companies had defaulted on EPF payments totalling Rs. 34,989,162,957.81 from 2015 to date. Deputy Minister of Labour Mahinda Jayasinghe said earlier that all identified companies would be formally notified and legal action would follow if they failed to comply.

Established under the EPF Act No. 15 of 1958, the EPF is Sri Lanka’s largest social security scheme, with assets valued at Rs. 4.4 trillion as of the end of 2024. Under the law, employees contribute a minimum of 8% of their monthly earnings, while employers are required to contribute at least 12%. The fund plays a critical role in supporting private and semi-government sector workers during retirement and also provides benefits such as housing loan guarantees and partial withdrawals for medical and housing needs. 




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