Free tool
Leave entitlement calculator Sri Lanka (Shop and Office Act)
Enter the date an employee joined and the year to calculate, and this tool gives the annual and casual leave due under the Shop and Office Employees Act: 14 days' annual leave from the second year (prorated 14, 10, 7 or 4 days in the first year by the quarter joined) and 7 days' casual leave (1 day per two months in the first year).
How it is calculated
- First yearAnnual leave depends on the quarter in which the employee joined: 1 Jan–31 Mar 14 days; 1 Apr–30 Jun 10; 1 Jul–30 Sep 7; 1 Oct–31 Dec 4. Casual leave: one day for every two completed months.
- Later years14 days of annual leave, of which the employee may take at least 7 consecutively, and 7 days of casual leave for private or unforeseen matters.
- Weekly holidaysSeparate from leave: one and a half days a week (typically Saturday afternoon and Sunday) plus every Poya day and declared mercantile holiday.
- RemainingEntitlement less the days already taken this year.
Applies to shop and office employees. Wages Board trades follow their own decisions, which are broadly similar; sick leave for shop and office staff is not a separate statutory entitlement and is usually granted by policy. Maternity leave is governed by the Maternity Benefits Ordinance.
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.
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See Humanised payroll softwareFrequently asked questions
How many days of annual leave is an employee entitled to in Sri Lanka?
Under the Shop and Office Employees Act, 14 days a year from the second year of employment. In the first year it depends on the quarter the employee joined: 14 days if they joined between 1 January and 31 March, 10 for April to June, 7 for July to September and 4 for October to December.
How much casual leave is there?
Seven days a year for shop and office employees. In the first year, one day for every two completed months of service.
Is sick leave a statutory entitlement in Sri Lanka?
The Shop and Office Employees Act does not provide separate sick leave; employees use casual leave or leave granted under company policy or a Wages Board decision. Many employers grant paid sick leave by policy.
Can annual leave be carried forward or encashed?
The Act requires annual leave to be given within the year; carry-forward and encashment are matters of company policy, except that accrued leave is normally paid on termination. See the leave encashment guide.
Do weekly holidays and Poya days count as leave?
No. Weekly holidays (one and a half days), Poya days and declared mercantile holidays are separate paid holidays, not deducted from annual or casual leave.
What is the maternity leave entitlement?
Maternity leave is governed by the Maternity Benefits Ordinance and the Shop and Office Employees Act; since the 2018 amendments, 84 working days of paid leave applies for confinements. Check the current text for conditions.
Does the calculator cover Wages Board employees?
It applies the Shop and Office Employees Act. Wages Board trades have their own annual leave and casual leave numbers in each board’s decision; most are similar but check the decision for your trade.