The Provident Fund legislation is based on Law 44(I)/1981 and was entered into force on 1.6.1982. Its main objective is to rule the establishment and operation of Provident Funds in order to secure their efficient operation in favour of their members.

The responsibility for the implementation of the legislation is entrusted to the Registrar of Provident Funds. By decision of the Minister of Labour and Social Insurance, the Director of Social Insurance has been appointed as the Registrar.

Provident funds give significant benefits to the employees as well as to the employers. However, the setting-up and administration of provident funds can be cumbersome and disruptive.

The scheme will have to be carefully designed to meet both the employers and employees’ needs and to be in accordance with existing Laws and regulations.

The services rendered on matters relating to provident funds are:

• Drafting the fund’s rules and regulations;
• Obtaining approval and registering the fund with the Registrar of Provident Funds;
• Obtaining Inland Revenue approval;
• Performing all accounting and bookkeeping work;
• Arranging for transfers from and to the fund’s bank account;
• Performing all administrative work including organization of the Annual General Meeting;
• Preparing the annual accounts and the annual statements for each member;
• Carrying out a “Diagnostic review” to ensure compliance with the legislation and rules of the provident fund;
• Distributing funds to the members leaving and preparing the final statements of amounts due.