LIVE NEWS

The current value of the Portable Retirement Gratuity Fund (PRGF) is Rs 4.9 billion. Since its creation in 2020, Rs 14,681,787 have been withdrawn from this fund to pay gratuities upon retirement or death of workers. This is according to official figures from the Ministry of Finance.

The purpose of the PRGF is to provide for the payment of a bonus when an employee retires or in the event of the death of an employee, to pay a bonus to the widow or widower. This bonus will be paid regardless of the number of employers with whom the employee may have worked during his or her career. Before the introduction of the PRGF, it was only the number of years spent with the last employer that was taken into consideration when paying the lump sum on retirement.

Under the current formula, employers are required to pay PRGF contributions at a rate of 4.5% of each worker’s monthly remuneration. However, small and medium-sized enterprises (SMEs) will pay PRGF contributions at a lower rate for the first three years, with the difference covered by the government from a set-aside capital. The PRGF rate, applicable to monthly remuneration, is based on the SME’s annual turnover. Where the MRA already has information on annual turnover, the selection will be pre-defined.

As for self-employed workers, they can also contribute to the PRGF for themselves. The minimum monthly contribution to be paid by the self-employed worker is Rs 500 and the maximum contribution is Rs 2,500.

In four and a half years, the contribution of the self-employed will however have been minimal, because they have only contributed Rs 737,227, while employees have contributed nearly Rs 5 billion.

self employed

Leave a reply below

Your email address will not be published. Required fields are marked *

×

Contact Business

Captcha Code