Sri Lanka

In Sri Lanka, labor law mandates several benefits that employers must provide to their workers. These benefits are crucial for employee well-being, job satisfaction, and retention.

Paid Leave

• Annual Leave: Employees who have completed one year of service are entitled to a minimum of 14 days of paid annual leave, according to their employment contract. Public holidays do not count towards this entitlement.

• Public Holidays: Sri Lanka has a designated set of public holidays throughout the year. Employees are entitled to paid leave on these days. If a public holiday falls on a weekend, the leave is usually not carried forward.

• Sick Leave: Employees are entitled to seven days of paid sick leave per year, provided they can furnish a medical certificate issued by a registered medical practitioner.

• Maternity Leave: Sri Lankan law mandates paid maternity leave for female employees. The specific duration and eligibility criteria may vary depending on the sector (public or private).

• Additional Leave: The law also grants employees leave for specific purposes like attending reserve military training, language proficiency exams, medical examinations, and voting.

Provident Fund Contributions

Sri Lanka has a mandatory contributory provident fund scheme. Both employers and employees are required to contribute a specific percentage of the employee's salary towards the Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF). These contributions act as a retirement savings mechanism for employees.

Other Mandatory Benefits

• Overtime Pay: Employees who work beyond their standard working hours are entitled to overtime pay, typically calculated at a higher rate than their regular wages.

• Notice Period: The law mandates a minimum notice period for both employers and employees before termination of employment. This period varies depending on the length of service and employment contract.

• Severance Pay: Under certain circumstances, such as termination due to redundancy or company closure, employees may be entitled to severance pay.

In Sri Lanka, employers can distinguish themselves by offering a compelling package of optional benefits. These perks can attract top talent, boost employee morale, and increase retention.

Health and Wellness

• Health Insurance: Offering health insurance beyond basic coverage demonstrates a commitment to employee well-being. Employers might cover a portion of the premium or provide different plan options.
• Life Insurance and Disability Insurance: These provide financial security to employees and their families in case of unforeseen circumstances.
• Wellness Programs: On-site fitness facilities, gym memberships, or corporate wellness programs promoting healthy habits are becoming increasingly popular.

Work-Life Balance

• Paid Time Off: Offering additional paid vacation days or sick leave shows a commitment to work-life balance and reduces employee stress.
• Flexible Work Arrangements: Remote work options, flexible working hours, or compressed workweeks can improve employee satisfaction and productivity.
• Childcare Assistance: Subsidies or on-site childcare facilities can be a game-changer for working parents.

Other Perks

• Transportation Allowances: Helping with commuting costs can ease the financial burden on employees, especially in larger cities.
• Housing Allowances: This benefit can be particularly attractive in areas with high housing costs.
• Performance-Based Bonuses: Incentivize achievement and motivate employees with bonuses tied to performance metrics.

In Sri Lanka, there is no existing law that mandates employers to provide health insurance for their employees. This means that it is not a legal requirement for employers to cover their workers under health insurance schemes.

However, there are certain exceptions to this rule. For instance, the Medical Wants Ordinance of Labourers in Planting Districts (as amended) specifically caters to the health and medical needs of plantation workers in Sri Lanka. This ordinance may stipulate requirements for health insurance in this particular sector.

Employer-Provided Health Insurance

Even though it's not a legal requirement, many employers in Sri Lanka opt to offer health insurance as part of their employee benefits package. This is often seen as a valuable perk that can help attract and retain talent.

Employers have the freedom to create their own health insurance plans or collaborate with private insurance companies to offer group health insurance policies for their employees. These plans can cover a wide range of medical expenses, including hospitalization, surgery, and outpatient care.

Saving for retirement is crucial to ensure financial security after your working years. In Sri Lanka, several retirement plans cater to employees from various sectors.

Individual Retirement Plans

Individual retirement plans offered by insurance companies are a popular choice for Sri Lankan employees. These plans provide flexibility and cater to individual needs. Here are some prominent examples:

• Freedom Retirement Plan (Sri Lanka Insurance): This plan offers a guaranteed monthly income upon retirement, along with an optional annual healthcare benefit and increasing payouts based on compound interest.

• Retire with Pride (Softlogic Life): This plan allows you to choose a lump sum payout or receive income in installments after retirement. You can also opt for flexible premium payment options.

• Retirement Plans (Ceylinco Life): Ceylinco Life offers a variety of retirement plans with features like maturity benefits, death benefits, and bonuses.

These are just a few examples, and several other insurance companies offer retirement plans in Sri Lanka. It's recommended to research and compare plans from different providers to find one that aligns with your financial goals and risk tolerance.

Employer-Sponsored Retirement Plans

Some Sri Lankan companies offer employer-sponsored retirement plans as part of their employee benefit package. These plans can be beneficial as they often involve contributions from both the employer and employee. Here's a common example:

• BOC Abhimana Retirement Scheme (Bank of Ceylon): This scheme allows employees from various sectors, including private, semi-government, and self-employed individuals, to contribute towards their retirement. It offers flexible contribution options and multiple retirement benefit choices.

The availability and specific features of employer-sponsored plans will vary depending on your company's policies.

Government Pension Schemes

Sri Lanka has a government pension scheme for certain categories of employees, primarily those working in the public sector. Eligibility and benefits will depend on the specific scheme and your employment history.

By exploring the available retirement plans in Sri Lanka, you can make informed decisions to secure your financial future. Consider factors like your desired retirement lifestyle, risk tolerance, and investment goals when choosing a plan.