Free tool
No-pay deduction calculator Sri Lanka
Enter the monthly salary, the number of no-pay days and the daily-rate method your company uses (salary ÷ 30 is the most common) to get the deduction, the salary after no-pay and the EPF-liable earnings after no-pay.
How it is calculated
- Daily rateMonthly salary divided by the divisor in your policy: 30 calendar days is the most common in Sri Lanka; some employers use the month's working days, 26 or 25.
- DeductionDaily rate × no-pay days (half days count as 0.5).
- Statutory contributionsNo-pay reduces EPF-liable earnings, so EPF 8% and 12% and ETF 3% are calculated on the reduced salary.
- PayslipShow no-pay as its own deduction line with the number of days, so the employee can check it.
Sri Lankan law does not fix a single divisor; the Labour Department accepts a consistent, documented method. Write the method into the employment contract or leave policy and apply the same one to overtime and pro-rata calculations.
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.
Do this automatically
Humanised calculates no-pay from approved leave and attendance, for every employee each pay run, with EPF, ETF and APIT built in. From LKR 10,000/month for up to 15 employees, no setup fee.
See Humanised payroll softwareFrequently asked questions
How is no-pay calculated in Sri Lanka?
The monthly salary is divided by a daily-rate divisor to get a day’s pay, then multiplied by the number of unpaid days. Most Sri Lankan employers divide by 30; some divide by the working days in the month, by 26 or by 25. The law does not fix one method, so use the one in your policy consistently.
Is no-pay deducted before EPF?
Yes. No-pay reduces the salary actually earned, so EPF (8% and 12%) and ETF (3%) are calculated on the reduced EPF-liable earnings.
Can an employer deduct no-pay for lateness?
Only under a policy the employee has agreed to, and the deduction must reflect time not worked. Many companies use late marks that convert to half-day no-pay after a set number.
Does no-pay affect APIT?
APIT is computed on the remuneration actually paid, so a no-pay month has lower taxable pay and usually lower APIT.
How should no-pay appear on the payslip?
As a separate deduction line with the number of days, so the employee and any Labour Department inspector can check the arithmetic.
What if the employee had leave available?
If annual or casual leave was available and approved, the day is paid leave, not no-pay. No-pay applies only when leave is exhausted or the absence was not approved as leave.