EPF and ETF Registration for Small Employers
Yes - EPF and ETF apply from your first employee, with no minimum headcount. Here is how to register, get an employer number and file the first month.
On this page
- The myth about a 15-employee threshold
- Who counts as an "employee" for EPF?
- Registering the business: documents and where to go
- Getting the employer number for each fund
- Registering each member, and the joining forms
- First month: contributions, forms and deadlines
- Do this automatically in Humanised
- Frequently asked questions
- Do I have to register for EPF if I only have one employee?
- Is there a separate ETF registration in Sri Lanka?
- Do family members working in the business count for EPF?
- Are directors covered by EPF?
- Do part-timers need to be registered for EPF and ETF?
- Can I backdate EPF and ETF registration if I missed the 14-day deadline?
Yes. EPF (the retirement fund you and your employee both pay into) and ETF apply from the day you hire your first employee. There is no minimum headcount. You must register with the Department of Labour within 14 days of that first hire (Form D). One employer number covers both EPF and ETF. There is no separate ETF registration.
The myth about a 15-employee threshold
Sri Lankan employers often confuse the 15-employee mark with a registration threshold. It is not. Fifteen employees is where certain procedures change: which ETF remittance form you use, and whether electronic payment becomes compulsory. It does not change whether the funds apply to you. Even a business with one employee owes EPF and ETF, and must register.
Who counts as an “employee” for EPF?
EPF does not depend on the type of job. The EPF employer guide confirms that permanent, probationary, temporary, casual, part-time, apprentice, piece-rate, commission and contract-of-service workers are all members. Contributions are due on whatever they are paid. What matters is whether the person works for you under a contract of service. That means they work as your employee, not as an outside supplier. See our guide on contractor vs employee status if that is unclear. Job title, hours, and length of service do not matter.
Registering the business: documents and where to go
| Step | What to do | Source |
|---|---|---|
| 1. Register as an employer | Complete Form D in duplicate | EPF employer FAQ |
| 2. Deadline | Send it by registered post to the nearest Labour Office, or to the Commissioner General of Labour, within 14 days of hiring your first employee | EPF employer FAQ |
| 3. Get your employer number | You get a registration number starting with two letters for your district. Quote it on every EPF and ETF document | EPF employer FAQ |
| 4. ETF | No separate registration. The ETF Board uses the same employer number. If it has not arrived yet, the Board’s Contribution Section issues a temporary number so your first month is not late | ETF employer guide |
Source: EPF employer guide; ETF employer guide.
Getting the employer number for each fund
You do not apply to EPF and ETF separately. The Department of Labour issues one employer number against Form D, and you use it for both funds. The only exception: if you run an approved private provident fund instead of standard EPF, ETF gives you a separate number. You must quote it on every ETF form.
Registering each member, and the joining forms
Once your business is registered, register each new employee within 14 days of hiring them:
- Form A: member details.
- Form B: the member’s identity record.
- Form H: nomination (who gets the balance if the member dies).
- Form RR: used to re-register a member, with a clear NIC copy and the employee’s signature.
Give members numbers in strict order: 01 for the first employee, 02 for the next. Never reuse a number once it has been given out. The employer number plus the member number becomes the employee’s EPF account number.
First month: contributions, forms and deadlines
From the first pay run:
- Deduct 8% from the employee’s total monthly earnings, and add 12% from you as employer, both going to EPF. Add 3% employer-only to ETF.
- File Form C for EPF for the pay month. File Form R4 for ETF. A business that has just registered, with one or two staff, is well under the 15-employee mark that needs Form R1 instead.
- Pay EPF before the last working day of the month after the pay month. ETF is due on or before that day.
- Keep the third copy of Form C, and your R4 records, on file. The Labour Office and the ETF Board can both inspect them.
Missing this in month one is common, and you can fix it. Back-pay the contribution as soon as you register. Expect a surcharge (a fine added for paying late) on the late amount. It runs from 5% up to 50%, depending on how late it is (see the EPF employer guide). Then register every hire on time from that point.
Do this automatically in Humanised
Once you are registered, HR and payroll software keeps your member list and monthly returns in one place. Moving from onboarding to exit with a centralised employee management system turns a new hire’s EPF and ETF registration into a checklist item.
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 have to register for EPF if I only have one employee?
Yes. EPF applies from your first employee, with no minimum headcount. You must register with the Department of Labour within 14 days of that hire.
Is there a separate ETF registration in Sri Lanka?
No. The ETF Board uses the same employer number issued for EPF. You do not file a second registration, unless you run an approved private provident fund instead of standard EPF. Then ETF gives you a separate number.
Do family members working in the business count for EPF?
If they work under a contract of service for pay, treat them the same as any other employee for EPF and ETF. Genuinely unpaid family help is a different question. Ask a labour law adviser to confirm it case by case.
Are directors covered by EPF?
An executive director who is also a salaried employee of the company is usually treated as a member. A non-executive director who is not an employee is not. Confirm the specific arrangement with the Labour Department if in doubt.
Do part-timers need to be registered for EPF and ETF?
Yes. EPF and ETF do not depend on full-time or part-time status. Contributions are due on whatever a part-time employee is actually paid.
Can I backdate EPF and ETF registration if I missed the 14-day deadline?
Register as soon as you spot the gap, and pay the contributions owed from the actual date of hire. Expect the late-payment surcharge on the backdated amount. Then register every hire on time from there.
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