PRGF – An Employer's Cheat Sheet (Updated – JAN 2022)

What is the PRGF?

The Portable Retirement Gratuity Fund (PRGF) is a fund established under the Workers' Rights Act 2019. Where an employee is eligible to join the PRGF, the employer is required to make certain contributions to the PRGF in respect of that employee from 1 January 2020. When the employee retires at/after the age of 60 (or in case of earlier retirement in circumstances provided in the law), the administrator of the PRGF pays a retirement gratuity to that employee. The employer is not required to pay any retirement gratuity to the employee.

When does the PRGF come into operation?

The PRGF provisions initially came into operation on 1 January 2020. Thereafter, following changes brought through the COVID-19 (Miscellaneous Provisions) Act 2020, certain payment obligations have been suspended until January 2022 as explained below.