The object of the Portable Retirement Gratuity Fund shall be to provide for the payment of a gratuity –

1. to a worker, on his retirement;
2. to the legal heirs of a worker, on the death of the worker;
3. to a self-employed who has contributed to the Portable Retirement Gratuity Fund, on his retirement; or
4. to the legal heirs of a self-employed who has contributed to the Portable Retirement Gratuity Fund, on the death of the self-employed.

As from January 2022, eligible employers have to pay contributions at the rate of 4.5% of the salary and submit a monthly return in respect to PRGF to the MRA.

An employer other than –

1. an employer who has a private pension scheme;
2. 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 –

1. a job contractor;
2. a public officer or a local government officer; or
3. a worker whose retirement benefits are payable –
   (i) under the Statutory Bodies Pension Funds Act; or
   (ii) in accordance with a private pension scheme;
4. a migrant worker or a non-citizen; and
5. 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 –

1. voluntarily retires on or after attaining the age of 60;
2. retires before attaining the age of 60, in accordance with any other relevant enactment or any agreement;
3. retires at the request of his employer on or after attaining the retirement age; or
4. retires before attaining the age of 60, on grounds of permanent incapacity, duly certified by a Government medical practitioner, to perform his work; or
5. 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;
6. voluntarily retires before 60 years, after completion of 436 months with same employer.
7. to a self-employed who has contributed to the Portable Retirement Gratuity Fund, on or after attaining the age of 60;
8. 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.