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    Employers - FAQ
(1) Do every Employer has to pay ETF?
  Yes. All the employers in Government and Private Sector has to contribute to the ETF on behalf of their employees except the Government Department’s and the Local Government Authorities.
(2) Are their any other occasions that the employers are exempted for paying ETF?
 
Yes
Ex :
(a) Enterprises which comprises of only family members.
(b) Companies when Partners/Directors are the only employees.
(3) What is the ETF contributions percentage and do the employers has to pay the contribution monthly?
  The ETF contributions percentage is 3%.  Every employer has to pay their ETF contributions monthly on behalf of their employees.
(4) Is the Employer legally bound to pay contributions for following people?
 
(a)
Pensioned people employed in your business.
(b)
Students above 14 years of age who work after school hours.
(c)
People who work in your company as well as in another at the same time.
(d)
People who rotates or migrate from one place of work to another.
(e)
Contract workers.
(f)
People who have obtained a refund and re-employed.
(g)
Expatriate employees.
(h)
Casual /  Piece-rate, Trainees, etc
  Yes. The employer is liable to contribute to ETF for the above persons.
(5) How to register at ETF to pay the contributions?
  There is no special registration Scheme at ETF.  The employers will automatically register with the ETF by paying their 1st contributions payment.  But the employer must submit their EPF number when making payments.  If any employer does not have a EPF number can contact Finance Manager (Contribution-Collection), (Tel. 011-2503911), 10th Floor, Labour Secretariat Bldg, Colombo 05 and obtain  the relevant number for remitting their payments.
(6)

Can employers deduct ETF contributions from the employees monthly earnings?

  No
(7) How should the contributions be calculated?
  Unlike EPF the employers should not deduct the ETF contributions from employees earnings.  The Employer must calculate 3% of ETF contributions on the employees total monthly earnings.  The total monthly earnings should include the following :
 
(a)
Salary, Wages or Fees
(b)
Cost of Living allowance, Special Living allowance and other similar allowances
(c)
Payment with respect of to holidays
(d)
The cash value of cooked or uncooked food supplied by the employer to the employee (The determination of such values will eventually be made by the Government of Labour)
(e)
Food allowance
(f)
Any other kinds of remuneration that may be specified
(g)
Payments in the form of discounts (commissions), piece-rate payments and contract basis payments
(8) How can contributions to be paid and what document do I need to submit when making contributions?
 
The ETF has two (02) categories of employers.
(a)
Larger category (employers employing more than 15 employees)
(b)
Smaller category (Employers employing less than 15 employees)

When a larger category employer is remitting contributions must submit duly filled  “R1” remittance form with the Cheque, Money Order or Cash payment. A smaller category employers must submit a duly filled “R4” remittance form with the cheque,  Money Order  or Cash payment.  Please note that without the “R1” or “R4” remittance form, the ETF is not excepting the particular payments.

(9)

What are the payment Modes?

 
Manual Mode -      Remitting payments by cheques, cash or Money Orders
Electronic Mode -      Through Internet
(10) When is the last date to pay contributions?
  Employer must pay their monthly ETF contributions on or before the last working day   of the succeeding month.
(11) Are their any penalty for the delayed payments?
  Yes. 5% to 50% surcharge must pay according to the delay as follows :-
 
5%
-
for a delay not exceeding 10 days
15%
-
for a delay between 11 days to 01 month
20%
-
for a delay between 01 to 03 months
30%
-
for a delay between 03 to 06 months
40%
-
for a delay between 06 to 12 months
50%
-
for delay exceeding 12 months
(12) How to produce employee details to the employers making remittance by “R1”?
  The every employer paying contributions by “R1” (larger category) must provide half-year returns as follows :
 
1st half
-
on or before the 31st of August
2nd half
-
on or before the 28th of February (following year)
  If not a 1% of surcharge must pay for each delayed month on the face value of the return by the employers.
(13)

How to draw a cheque for ETF payment and where to send?

  The cheques should be drawn in favour of “Employees’ Trust Fund “ and sent to Finance Manager (Contribution – Collection) 10th Floor, Labour Secretariat Bldg, Colombo 05.  The employer can also hand over their ETF payments to the above address personally.
(14) What are the benefits to the employers by making ETF contributions payments through internet?
 
(a) Employer can pay their payments even in a holiday or at night.
(b) No paper work is involving.
(c) Larger category employers (Remitting ETF by “R1”) can submit their employee details (returns) monthly.  Can upload these details through internet to their respective bank accounts.  They can avoid sending of half-yearly return by filling forms etc.
(15)

When the employer start making contributions for a new employee?

  You should ensure that the new employee is enrolled in to the ETF immediately.  The employer must remit the contributions from the 1st salary.
 
 
   
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