More than 40 percent of the employers islandwide have not been remitting Employees Provident Fund (EPF) contributions.
The Labour Department yesterday (8) launched an operation to nab the errant employers.
Labour Ministry Secretary, Mahinda Madihewa told The Island yesterday the department had deployed officers to track down errant employees.
Madihewa called it a `combing operation` to net in errant employers who have failed to remit more than 500 million rupees in EPF contributions though it was mandatory by law to contribute. He said once employers who had not contributed to the fund were identified they would be requested by the department to do so and a `red notice` sent to them thereafter. Legal action will be instituted only if the employer fails to pay EPF after reminders from the department.
Labour Minister Athauda Seneviratne said so far over 3,000 errant employers had been brought before court by the law enforcement division of the Labour Department and the `combing operation` had netted in about 10 million rupees to the EPF in the current year.
Minister Senviratne said the contributions collected last year was 20 billion rupees and the total funds in the EPF account at the Central Bank amounted to over 38 billion rupees.