Page 65 - KDU Law Journal Volume 4 Issue 2

KDU Law Journal Volume 04 Issue II
September, 2024
beneficiary receives benefits in lumpsum from the total amount
contributed in the condition of the contributor’s retirement or the
termination of employment or upon the contributor’s death.
Overall, the above-discussed protection scheme replicates the
social security protection mechanism that has covered the chain
of the human life system to some extent. Still, there is a scope for
reformation to encourage contributors from all sectors of the market
economy/labour market to register at SSF, which gradually supports
reducing the poverty gap and promotes national prosperity. The
following section on challenges and a way forward has outlined the
hurdles and way out, too.

For the coverage of the protection scheme, the Social Security
Fund is operated and managed by collecting contributions from
employers and employees as below;
45
44
Contribution to the Fund 46
S.No. Contribution Employer Employee Total
Heading (Contribution Rate i.e. Rate
from basic salary)
1. Provident Fund 10% 10%
2. Social Security Tax - 1%
3. Gratuity 8.33% - 31% of
4. Medical Insurance 1.67% - basic 47
Total 20% 11% salary.

The financial contribution from both the employer and employee is an
admirable approach for sustainability and also promotes responsible
conduct from business entities as well as developing confidence and
ownership for empowering the future of the worker. Also, in the
44 Section 25 of the Social Security Scheme Operating Procedure, 2018 (2075)
45 ibid
46 Distribution of Contribution, Section 25 of the Social Security Scheme Operating Proce-
dure, 2018 (2075)
47 ibid
law.faculty@kdu.ac.lk
58