HRIS

New Employee Checklist for Sri Lankan Employers

Written terms, EPF and ETF registration, a tax declaration and payroll setup - the checklist for hiring your first or fiftieth employee in Sri Lanka.

Updated September 23, 2026 Reviewed by Anudi Imesha, Customer Success Consultant, Humanised HR and Payroll 4 min read

HRIS sri lanka HUMANISED PAYROLL
On this page
  1. Before day one
  2. Day one: written particulars
  3. EPF and ETF: register within 14 days
  4. Tax: TIN and the APIT declaration
  5. Setting the employee up in payroll
  6. Records from day one
  7. A printable new-hire checklist
  8. Frequently asked questions
  9. Do I need to register for EPF and ETF for just one employee?
  10. What happens if a new hire has no primary-employment declaration yet?
  11. Is there a separate checklist for part-time or casual staff?
  12. How soon must I set a pay day for a new employee?
  13. Do I have to set a probation period?
  14. What records do I need to keep from the first day?

Give the employee written terms on day one. Register them for EPF within 14 days — one employer number covers ETF too. Get their tax number, add them to payroll, and start their attendance and leave records.

Before day one

Sort out the paper trail before the first day:

  1. Confirm the offer in writing, including start date, role and pay.
  2. Check the person is 16 or over. That is the minimum age for shop and office work.
  3. Collect their NIC, bank details and their tax number (TIN). New employees must give a TIN for APIT.
  4. Decide the probation period, if you are setting one. No Act fixes a length. See our guide on probation periods, confirming and ending them for what must be written down.
  5. Prepare the written particulars of employment (see below) ready to hand over.
  6. If this is your first employee, get your own business TIN from the Inland Revenue Department. You need it for APIT and stamp duty before the first pay run.

Day one: written particulars

The Shop and Office Employees Act requires written particulars of employment on the date employment starts. This is your appointment letter or contract. It must cover, at least:

  • Name, role and grade.
  • Start date.
  • Pay and allowances.
  • Hours of work.
  • Leave entitlement.
  • Probation terms, if you are setting one.
  • How the employment may be ended.

Give it to the employee on day one, not after. See our labour law map for every Act this connects to.

EPF and ETF: register within 14 days

Register the business with the Labour Department on Form D within 14 days of your first hire, if you have not already. One employer number covers both EPF and ETF. There is no separate ETF registration. Then register each new employee within 14 days, using Form A, Form B and Form H. Give each member a number in strict order. Never reuse a number. See our guide on EPF and ETF registration for small employers for the full process and forms.

FundWho paysRateDue date
EPFEmployee8% of total monthly earningsBefore the last working day of the following month
EPFEmployer12% of total monthly earningsBefore the last working day of the following month
ETFEmployer only3% of total monthly earningsOn or before the last working day of the following month

Membership applies to every type of worker: permanent, probationary, temporary, casual, part-time and contract-of-service (not the same as an outside contractor). Contributions are due on whatever they are paid, from day one, with no minimum headcount.

Tax: TIN and the APIT declaration

Get the employee’s primary-employment declaration along with their TIN. The declaration tells you which employer applies APIT (income tax you take from pay and send to the IRD). Without it, the IRD’s Table 7 applies instead: a flat rate with no personal relief. For 2025/26, the normal tables give the first LKR 1,800,000 a year (LKR 150,000 a month) relief-free. After that, bands rise: 6%, 18%, 24%, 30% and 36%.

Setting the employee up in payroll

Add them to the pay run with: basic salary, allowances, EPF and ETF member numbers, and the tax declaration on file. Set their pay day inside the Act’s limits: within 10 days of month end for monthly-paid staff.

Records from day one

Start an attendance record and a leave record the day they join. Keep these records current. Where someone has stopped being the employer, the Commissioner can still ask for records from the two years before the request (s.47(1A)). Waiting until month two to set this up leaves a gap you cannot fill in later. See what an employee really costs in Sri Lanka for the full on-cost once EPF, ETF and gratuity are added.

A printable new-hire checklist

  1. Written offer confirmed; NIC, bank details and TIN collected.
  2. Age checked (16 or over); probation length decided, if any.
  3. Written particulars of employment given on day one.
  4. Form D filed within 14 days, if this is your first hire; your own business TIN obtained.
  5. Employee registered for EPF within 14 days (Form A, B, H) — this same registration covers ETF.
  6. TIN and primary-employment declaration on file.
  7. Added to payroll with pay, allowances and member numbers.
  8. Attendance and leave records started on day one.

Do this automatically in Humanised. HR software in Sri Lanka turns this checklist into an onboarding workflow instead of a memory test. It stores the signed contract, the EPF and ETF numbers, and the tax declaration in one employee record from day one.

This is general payroll guidance. Every case is different. For your own case, speak to a payroll practitioner or a lawyer.

Frequently asked questions

Do I need to register for EPF and ETF for just one employee?

Yes. EPF and ETF apply from your first hire, with no minimum headcount. Register within 14 days.

What happens if a new hire has no primary-employment declaration yet?

With no primary-employment declaration on file, deduct APIT using Table 7, which gives no personal relief. Switch to the normal table once the declaration is on file. Ask for the TIN at the same time.

Is there a separate checklist for part-time or casual staff?

No. EPF, ETF, written particulars and records apply the same way, whatever the hours or the job type.

How soon must I set a pay day for a new employee?

Within the same limits as everyone else: 10 days after month end for a monthly wage. Put the exact day in the written particulars.

Do I have to set a probation period?

No. It is optional. If you set one, write down its length and the terms, on day one.

What records do I need to keep from the first day?

Attendance, leave taken, and the remuneration paid. Keep these records current. Where someone has stopped being the employer, the Commissioner can still ask for records from the two years before the request (s.47(1A)).

Do this in Humanised

Humanised is HR software in Sri Lanka: one HRIS for records, leave, attendance and payroll with EPF, ETF and APIT built in.

Payroll deadlines & law changes, in your inbox

EPF/ETF due dates, APIT updates, and new employment-law guides for Sri Lankan employers. One email a month, no fluff.

Was this article helpful?

Your feedback helps us improve these guides.

Keep reading

More posts in HRIS.