Free tool
EPF and ETF calculator Sri Lanka
Enter EPF-liable monthly earnings and the number of employees to get the employee EPF deduction (8%), the employer EPF contribution (12%), the employer ETF contribution (3%) and the total remittance due by the last day of the following month.
How it is calculated
- EPF employee8% of EPF-liable earnings, deducted from the employee.
- EPF employer12% of EPF-liable earnings, paid by the employer.
- ETF employer3% of EPF-liable earnings, paid by the employer to the ETF Board.
- Due datesBoth EPF (20% in total) and ETF are payable before the last day of the month following the pay month. Late payment attracts a surcharge on a rising scale.
EPF and ETF are calculated on basic salary plus allowances that form part of regular earnings; overtime and reimbursements are generally excluded. The monthly EPF return is the C-form; ETF uses the R4 remittance advice.
Rates used
| Item | Rate or amount | Applies to |
|---|---|---|
| APIT personal relief | LKR 1,800,000 per year (LKR 150,000 per month) | Resident employees, IRD Table 1 |
| APIT band | Next LKR 1,000,000 at 6% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 18% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 24% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 30% | Annual taxable income after relief |
| APIT band | Balance at 36% | Annual taxable income after relief |
| EPF employee | 8% | EPF-liable earnings, deducted from employee |
| EPF employer | 12% | EPF-liable earnings, paid by employer |
| ETF employer | 3% | EPF-liable earnings, paid by employer |
| Gratuity | Half a month’s salary per completed year | After 5 years; employers with 15+ staff |
Sources: IRD APIT tax tables 2025/26, EPF, ETF Board, Payment of Gratuity Act No. 12 of 1983. Last reviewed 3 September 2026.
Do this automatically
Humanised calculates EPF, ETF and the C-form and R4 returns every month, for every employee each pay run, with EPF, ETF and APIT built in. From LKR 10,000/month for up to 15 employees, no setup fee.
See Humanised payroll softwareFrequently asked questions
What are the EPF contribution rates in Sri Lanka?
The employee contributes 8% and the employer 12% of EPF-liable earnings, a total of 20% paid to the Employees’ Provident Fund each month.
What is the ETF contribution rate?
The employer alone contributes 3% of EPF-liable earnings to the Employees’ Trust Fund. Nothing is deducted from the employee for ETF.
Which earnings are EPF and ETF calculated on?
Basic salary plus allowances that are part of regular earnings (cost of living, budgetary relief and similar fixed allowances). Overtime, reimbursements and most one-off payments are generally excluded.
When are EPF and ETF payments due?
Contributions for a month are payable before the last day of the following month. Late payment attracts a surcharge that rises with the delay.
What forms are filed with EPF and ETF payments?
EPF uses the monthly C-form (contribution return) and ETF uses the R4 remittance advice, plus half-yearly member returns to the ETF Board. Payroll software generates both from the pay run.
Are directors and part-time staff covered by EPF?
Employees in covered employment are, regardless of hours; working directors on a salary are generally treated as employees for EPF. Check the EPF Act and the Labour Department’s guidance for your case.