For many Sri Lankan SMEs, running payroll isn’t just about calculations. It’s about staying in step with changing regulations, filing the right reports, and making sure you don’t miss a compliance deadline. 

But the truth is, not every SME has a dedicated HR or finance team. In many cases, it’s the business owner handling payroll after hours, and trying to figure out if the latest changes to APIT or EPF affect their team. 

That’s why businesses today aren’t just looking for payroll software. They’re looking for systems that stay updated for them. 

What SMEs Are Asking About Right Now 

From our discussions with existing and potential SME users of Humanised, a few common questions come up: 

• ‘Do you automatically update for new APIT brackets?’ 

• ‘What if EPF/ETF rates change, will it reflect automatically?’ 

• ‘Will your system warn us if we’re missing new Shop and Office Act rules?’ 

These aren’t hypothetical concerns. Many businesses reach out to HRIS and payroll platforms like Humanised specifically because they’re struggling with manual updates and are worried about getting something wrong. 

Where the Real Risk Lies 

The biggest risk for SMEs isn’t ignoring a law, it’s accidentally applying the wrong one. Maybe someone’s still using an old APIT bracket. Or maybe a new rule about minimum leave hasn’t been added to the manual payroll sheet. 

And in these cases, the penalty isn’t just financial, it’s reputational. Employees lose confidence, and businesses feel the pressure during audits or Labour Department visits. 

What Smart Payroll Systems Are Already Doing 

Modern payroll systems in Sri Lanka are now built with automatic updates for compliance changes. So if APIT brackets change, the software reflects that instantly. If a new Shop and Office Act rule affects payslips or working hours, it’s flagged and integrated. 

With a system like Humanised, you don’t need to keep an eye on every circular or announcement. The backend takes care of it and your payroll stays accurate without the stress. 

This kind of automation is especially helpful for SMEs that don’t have someone following government publications every week. Even users with no legal background can run compliant payroll confidently. 

A Growing Reason to Adopt Software 

Interestingly, some SMEs adopt payroll software not for automation or speed, but because of the law. They feel they’re at risk of making mistakes in areas like: 

• Calculating APIT across multiple income sources 

• Applying new ETF/EPF contribution rules 

• Generating and filing reports like T10 or R4 correctly 

By shifting to a system that already understands these changes, they reduce risk, save time, and feel more confident. 

Staying One Step Ahead 

If 2024 was about getting used to tax reforms, 2025 will be about staying agile. Regulations will continue to change and for SMEs, the question is not whether you can keep up, but whether your tools can do it for you. 

Using a system that tracks, updates, and applies payroll law changes in real time isn’t just convenient, it’s a way of protecting your business as it grows.