Department
| Services Description
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Contribution
| Application and processing NPF Lump Sum/Overpaid contributions
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NSF Unit
| Application and Processing of lumpsum (refund of contribution paid to NSF)*
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PRO (Public Relation Office - Social Security Information Services
| Information regarding all services
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*NSF (National Saving Fund) - Provide payment of a lump sum to every employee at retirement age or earlier, or on his/her death.
Who contributes to the NSF
-Every employer and employee/s of the private sector pays a monthly contributions representing 2.5% and 1% (total of 3.5%) respectively of the basic wage or salary of every employee, aged between 18 and retirement age subject to the prescribed ceiling
-Employers having in their employment household workers must also contribute to the National Savings Fund.
Who is covered by the NSF
Every employee both in private and public sector aged between 18 and retirement age who works under either a full time or a part time contract of service.
NSF Lump Sum
A. Retirement on Ground of Age
(a) to an employee who has retired at the retirement age.
(b) to an employee who has retired from employment before attaining 60 years and the retirement is on ground of age as provided for under the Workers' Rights Act, a Pension Law, or under a Renumeration Order.
B. Retirement on Medical Grounds
To an employee who has retired from employment on medical grounds duly certified by a Government Medical Officer or a Medical Practitioner in the regular service of the employer. A letter of retirement from the employer together with a copy of the medical certificate must be produced.
C. Redundancy
To an employee who has lost his employment or has retired, on, or after attaining the age of 45, as a result of closure of business or enterprise or any reduction of workforce. A letter stating the ground of retirement from the employer must be produced.
D. Death of the employee
The NSF lump sum is also payable where an employee dies before reaching retirement age. Lump sum is payable to
(a) widow/widower of the deceased employee. - Photocopy of the marriage certificate and death certificate should be produced.
(b) Child/children of the deceased employee if there is no widow or widower - an affidavit sworn by the heirs to be produced.
(c) The legal personal representative(s) of the deceased employee if there is no widow or widower or child - an affidavit establishing the heirs of the deceased employee together with the civil status documents to be produced.
E. Expatriates
A lump sum is paid to foreign workers at the expiry of their contract of employment and when they return back to their country.
F. Lump sum is payable only in case of retirement or death which occurred after 01.07.94 and where NSF contributions have been paid on behalf of the employee after 01.07.94.
SOCIAL CONTRIBUTION / CGS - Contribution Social Generalisee
The CSG was introduced bty the Finance (micellaneous Provisions ACT 2020) to take effect as from September 2020. Employers have to contribute to this to the MRA instead of NPF (National Pensions Fund) as from September 2020. contributions to NPF have been last made for August 2020.
The CGS has been renamed Social Contributions as from September 2021.
PRGF - Portable Retirement Gratuity Fund
The object of the Portable Retirement Gratuity Fund shall be to
provide for the payment of a gratuity –
- (a) to a worker, on his retirement;
- (b) to the legal heirs of a worker, on the death of the worker;
- (c) to a self-employed who has contributed to the Portable Retirement Gratuity Fund, on his retirement; or
- (d) to the legal heirs of a self-employed who has contributed to the Portable Retirement Gratuity Fund, on the death of the self-employed.
Eligible employers have as from 01/2022 pay contributions and submit returns monthly in respect to PRGF to the MRA at the rate of 4.5% of the salary
An employer other than –
- (a) an employer who has a private pension scheme;
- (b) a statutory body specified in the First Schedule to the
Statutory Bodies Pension Funds Act, in so far as it relates to its workers by or on behalf of whom contributions are made, shall, on the commencement of this Act, pay to the Director-General the
contributions under this Act, in respect of each worker in his employment, at such rate as may be prescribed.
Any worker or self-employed, other than –
- (a) a job contractor;
- (b) a public officer or a local government officer; or
- (c) a worker whose retirement benefits are payable –
- (i) under the Statutory Bodies Pension Funds Act; or
- (ii) in accordance with a private pension scheme;
(d) a migrant worker or a non-citizen; and
(e) a worker drawing a monthly basic wage or salary of more that 200,000 rupees, shall be eligible to join the Portable Retirement Gratuity Fund.
Payment of gratuity
- 1. Gratuity in case of death
- If exit statement exist with all information. Benchmarking will be done and upon validation from MRA, notification will be sent to employer for payment to the heirs. Contributions paid on his behalf will be refunded by this Ministry
- 2. Gratuity in case of retirement
- If exit statement exist with all information. Benchmarking will be done and upon validation from MRA, notification will be sent to employer for payment to the employee. Contributions paid on his behalf will be refunded by this Ministry
- 3. Benchmarking in cases of cessation or termination of employment
- If exit statement exist with all information. Benchmarking will be done and upon validation from MRA, notification will be sent to employer for payment to MRA. The amount paid will be credited to his account (NID no.) and upon eligibility will be refunded to the employee.
Payment of gratuity to a worker who –
- (i) voluntarily retires on or after attaining the age of 60;
- (ii) retires before attaining the age of 60, in accordance with any other relevant enactment or any agreement;
- (iii) retires at the request of his employer on or after attaining the retirement age; or
- (iv) retires before attaining the age of 60, on grounds of permanent incapacity, duly certified by a Government medical practitioner, to perform his work; or
- (v) retires on grounds of incapacity to perform his normal work arising from injury sustained at work and where such incapacity is duly certified by a Government medical practitioner;
- (vi) voluntarily retires before 60 years, after completion of 436 months with same employer.
- (vii) to a self-employed who has contributed to the Portable Retirement Gratuity Fund, on or after attaining the age of 60;
- (viii) to the legal heirs of a worker, or the legal heirs of a self-employed who has contributed to the Portable Retirement Gratuity Fund, at the death of the worker or the self-employed.
Application for the gratuity may be made at nearest Social Security Office of his residence
