Employer guide
EPF for employers in Sri Lanka: registration, contributions, the C-form, deadlines and surcharges (2026 guide)
Every Sri Lankan employer must register with the Department of Labour within 14 days of hiring the first employee (Form D), contribute 12% of each employee’s monthly earnings to the Employees’ Provident Fund and deduct a further 8% from the employee, and remit the total 20% with the monthly C-form before the last working day of the following month. Late payment attracts a surcharge of 5% to 50%.
What the EPF is and who must contribute
The Employees’ Provident Fund is the compulsory retirement savings scheme for private-sector and semi-government employees, created by the Employees’ Provident Fund Act No. 15 of 1958. The Commissioner General of Labour enforces membership and collection; the Central Bank of Sri Lanka’s EPF Department keeps the accounts and pays benefits. Every employer with at least one employee is covered from the day the first person is hired. Coverage does not depend on the type of employment: permanent, probationary, temporary, casual, part-time, apprentice, piece-rate, commission and contract workers are all members, and contributions are due on whatever they are paid.
EPF at a glance
| Item | Rule | Source |
|---|---|---|
| Employee contribution | 8% of total monthly earnings, deducted from pay | Act s.10; EPF FAQ |
| Employer contribution | 12% of total monthly earnings, paid by the employer | Act s.10; EPF FAQ |
| Total remitted | 20% of earnings, to the Superintendent of EPF | EPF FAQ |
| Employer registration | Form D in duplicate within 14 days of the first hire, by registered post to the nearest Labour Office or the Commissioner General of Labour | EPF FAQ |
| Monthly return | Form C (original to EPF, second copy to the Labour Office, third retained) | EPF FAQ |
| Due date | Before the last working day of the month following the pay month | Act s.10; EPF FAQ |
| E-return | Compulsory for employers with 50 or more employees; open to all | EPF FAQ |
| Surcharge for late payment | 5% to 50% of the contribution, by length of delay | Act s.16; EPF FAQ |
| Offences | Fine and/or imprisonment on conviction; recovery of arrears with surcharge | Act s.37 |
Do this automatically
Humanised calculates EPF on the right earnings every pay run, produces the C-form and the bank-ready contribution file, and reminds you before the last working day of the month. From LKR 10,000/month for up to 15 employees.
See payroll softwareWhich earnings are subject to EPF
Contributions are calculated on the employee’s total monthly earnings as the Act defines them. The EPF Department’s employer FAQ lists what is in and what is out:
| Included in EPF earnings | Excluded |
|---|---|
| Salary or wages | Overtime payments |
| Cost of living and other regular allowances | Travelling expenses and reimbursements |
| Holiday pay and payments for leave | Bonuses and incentive payments |
| The value of food or other benefits given in lieu of wages | |
| Commissions, piece-rate and contract payments for work done |
The practical rule: anything that forms part of regular remuneration for work is contributable; genuine reimbursements, overtime and discretionary bonuses are not. Fixed monthly allowances are contributable even when labelled differently. If a payment is in doubt, the Labour Office will rule on it; most employers treat regular fixed allowances as EPF-liable.
Registering as an employer and registering members
- Form D within 14 days. Complete Form D in duplicate and send it by registered post to the nearest Labour Office or to the Commissioner General of Labour within 14 days of recruiting your first employee. You receive an employer registration number beginning with two letters for the district; quote it on every EPF document.
- Member registration. Register each new employee within 14 days of recruitment: Form A (member particulars), Form B (the member’s identity record) and Form H (nomination) are completed with the employee’s NIC details; re-registration uses Form RR with a clear NIC copy and the employee’s signature.
- Member numbers. The employer allocates member numbers in strict sequence (01 for the first employee, 02 for the next). A number once used may never be reassigned to another person; the employer number plus the member number is the employee’s EPF account number.
- Keep the register. The Shop and Office Employees Act and the EPF regulations require a service and remuneration record for every employee; the Labour Office may inspect it.
The monthly Form C and how to pay
Contributions for a pay month must reach the Fund before the last working day of the following month (s.10 of the Act). Three routes exist:
- Paper Form C at the bank. Employers below the e-return threshold complete the pre-printed Form C in triplicate, write the EPF reference number on the cheque or deposit slip, and pay at a Bank of Ceylon or People’s Bank branch; cheques are drawn in favour of the Superintendent of Employees’ Provident Fund. The original Form C goes to the EPF Department, the second copy to the Labour Office, the third stays on file.
- E-return through your bank. Register for the e-return system at the EPF employer portal or through a licensed commercial bank; upload the contribution detail file in the EPF format and pay through the bank’s corporate portal. Compulsory for employers with 50 or more employees.
- Direct debit. Submit the Direct Debit Authorisation certified by your bank; send the contribution and payment files at least five days before the last working day; the EPF claims the funds on the last working day.
Whichever route, the file or form must list every member with the member number, earnings and the two contributions. A new employee’s details go on the Form C of the month they join, exactly as on the NIC. Our step-by-step post on paying EPF online walks through the portal screens.
Surcharges and penalties for late payment
Section 16 of the Act imposes a surcharge on any contribution not made before the last day of the succeeding month, unless the employer satisfies the Commissioner that the delay was beyond the employer’s control. The scale published by the EPF Department:
| Delay after the due date | Surcharge on the contribution |
|---|---|
| 1 to 10 days | 5% |
| 11 days to 1 month | 15% |
| 1 to 3 months | 20% |
| 3 to 6 months | 30% |
| 6 to 12 months | 40% |
| More than 12 months | 50% |
Beyond the surcharge, failure to pay is an offence under section 37, punishable on conviction by a fine or imprisonment, and the Labour Department recovers arrears through the Magistrate’s Court. Outsourcing payroll does not move this liability: the employer remains the person the Act addresses.
Member statements, benefits and withdrawals
The EPF Department issues annual member statements and members can check balances online. Members withdraw the full balance at 55 (men) or 50 (women), or earlier on permanent migration, permanent disability, marriage (women), joining a pensionable public post, or death (paid to nominees). Employers are involved when a member claims: the claim form needs the employer’s certification of the last contribution, so keep the Form C history and the service record accessible after the employee leaves.
Monthly EPF checklist for employers
- Pay run closed and each employee’s EPF earnings confirmed (regular pay in, overtime and reimbursements out).
- Employee 8% deducted and employer 12% provided for; new joiners added with member numbers in sequence.
- Form C or e-return file generated and reconciled to the payroll total.
- Payment made before the last working day of the following month; receipt or acknowledgement filed.
- Second copy of Form C sent to the Labour Office; third copy on file for inspection.
- Leavers: last contribution paid and the employer certification ready for the claim.
Do this automatically
Humanised calculates EPF on the right earnings every pay run, produces the C-form and the bank-ready contribution file, and reminds you before the last working day of the month. From LKR 10,000/month for up to 15 employees.
See payroll softwareFrequently asked questions
What are the EPF contribution rates in Sri Lanka?
The employee contributes 8% of total monthly earnings and the employer 12%, a total of 20% remitted to the Superintendent of EPF (EPF Act No. 15 of 1958 s.10).
When is EPF due?
Before the last working day of the month following the pay month. August contributions must reach the Fund before the last working day of September.
How does a new employer register for EPF?
Send Form D in duplicate by registered post to the nearest Labour Office or the Commissioner General of Labour within 14 days of hiring the first employee. The employer number issued is used for EPF and ETF.
Which earnings are subject to EPF?
Salary, cost-of-living and other regular allowances, holiday pay, the value of food or benefits in lieu of wages, commissions and piece-rate pay. Overtime, travelling reimbursements and bonuses are excluded (EPF Department FAQ).
Is the EPF e-return compulsory?
Yes for employers with 50 or more employees; smaller employers may use it voluntarily or file the paper Form C at Bank of Ceylon or People’s Bank.
What is the surcharge for late EPF payment?
5% for a delay of 1 to 10 days, 15% up to one month, 20% up to three months, 30% up to six months, 40% up to twelve months and 50% beyond twelve months, in addition to the contribution (Act s.16).
Can the employer deduct the surcharge or its 12% from the employee?
No. Only the employee’s 8% is deducted from pay. The employer’s 12% and any surcharge are the employer’s cost.
Do casual, part-time and contract workers get EPF?
Yes. Coverage does not depend on the type of employment; anyone employed and paid is a member from the first day.
Related guides and tools
Sources. EPF Department (Central Bank of Sri Lanka), FAQs for employers; Employees’ Provident Fund Act No. 15 of 1958 (consolidated text); EPF employer e-services portal; Department of Labour. This guide is general information for employers, not legal or tax advice; figures are checked against the sources on the review date shown above and again every 1 January and 1 April. See our editorial approach.