*Corresponding Author’ Email: goonatilaka_Savithri@yahoo.com
Proceedings of The World Conference on Social Sciences
Vol. 2, Issue. 1, 2023, pp. 55-64
DOI: https://doi.org/10.33422/worldcss.v2i1.100
Copyright © 2023 Author(s)
ISSN: 2783-7785 online
Exploring Determinants of Desire Towards
Enrolling in Contributory Pension:
Evidence from Self-employed and Informal Sector
Workers of Sri Lanka
W.S.M. Goonatilaka
1*
, W. Indralal De Silva
2
, N. Sakalasooriya
3
1
Faculty of Graduate Studies, University of Kelaniya, Sri Lanka
2
Department of Demography, University of Colombo, Sri Lanka
3
Department of Geography, University of Kelaniya, Sri Lanka
Abstract
Social security is an essential mechanism for reducing old-age poverty and improving the
living standards of vulnerable individuals. One such social security instrument is the
contributory pension scheme. This study aims to identify the determinants of self-employed
and informal sector workers’ desire towards enroll in a contributory pension scheme offered
by the State. A simple random sampling technique was employed to select respondents. Face-
to-face interviews were conducted with 300 participants using a semi-structured
questionnaire in the Kurunegala district of Sri Lanka. A multivariate logistic regression
model was used to examine associations between the independent variables and the desire
towards enroll in a contributory pension scheme.The results revealed that female workers,
never married and divorced /widowed, individuals in middle-age, having an average
education, those with fewer dependents, individuals with middle incomes, and workers with
fair financial literacy have a greater probability of enrolling in a contributory pension
scheme. Enhancing financial knowledge, promoting financial inclusion, and reducing various
structural barriers to pension schemes can significantly foster the retirement planning
behaviour of these workers. It is important to encourage target workers, in general, to enroll
in a pension scheme, restore confidence in it, and ensure its sustainability. The findings of
this study would be beneficial for the development of pension products, particularly to
motivate self-employed and informal sector workers to enroll in a contributory pension
scheme.
Keywords: Contributory-pension, Determinants, Self-Employed, Desire