Sri Lanka

At age 55 for men and 50 for women.

Defined contribution

Employee’s provident fund is a fully-funded defined-contribution plan and employees contribute 8% of wage and employers pay 12%. The entire lump sum, including interest, is paid at the time of exit. The annual interest rate must be at least 2.5%. For comparison with other countries, for replacement rate purposes the pension is shown as a price-indexed annuity based on sex-specific mortality rates.

Social assistance

Senior Citizens over 70 years old, and whose monthly income is below LKR 3 000 are eligible for a monthly payment of LKR 2 000.

Early retirement

At any age if the government closes the place of employment, if emigrating permanently, or for employed women who marry.

Late retirement

It is not possible to start claiming pension after the normal pension age.

Taxation of workers

There is no income tax relief and the deduction of work-related expenses.

Taxation of worker’s income

There is a personal allowance of LKR 500 000 with additional income taxed as follows:

Social security contributions payable by workers

Employees’ contributions are deductible up to a limit of LKR 25 000 per annum.

Taxation of pensioners

All purchased annuities of retirees are exempt.

Taxation of pension income

Social security contributions payable by pensioners

Pensioners do not pay any social security contributions.

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