Salary Calculator Sri Lanka 2026
Calculate your net salary, EPF, ETF, PAYE tax, and take-home pay
Salary Calculator
Your Earnings
Deductions
Salary Calculation Formulas
EPF Calculation
EPF Employer (12%) = Gross Salary × 0.12
Total EPF = 20% of Gross Salary
Example: LKR 100,000 salary → Employee: LKR 8,000 | Employer: LKR 12,000 | Total: LKR 20,000/month to your retirement fund
ETF Calculation
Example: LKR 100,000 salary → Employer pays LKR 3,000/month to ETF. This is NOT deducted from your salary.
PAYE Tax Calculation (2026)
Tax Slabs:
• First LKR 500,000: 6%
• Next LKR 500,000: 12%
• Next LKR 500,000: 18%
• Next LKR 500,000: 24%
• Above LKR 2,000,000: 36%
Example: LKR 150,000/month = LKR 1.8M/year. Taxable: LKR 600,000. Tax: LKR 600,000 × 6% = LKR 36,000/year or LKR 3,000/month.
Overtime Calculation
OT Pay = Hourly Rate × 1.5 × OT Hours (weekday)
OT Pay = Hourly Rate × 2.0 × OT Hours (weekend/holiday)
Example: LKR 100,000 ÷ 200 = LKR 500/hour. 10 OT hours at 1.5x = LKR 7,500.
Net Salary Calculation
Example: LKR 100,000 + LKR 10,000 - LKR 8,000 - LKR 0 = LKR 102,000 take-home.
Cost to Company Breakdown
| Component | Percentage | LKR 50,000 | LKR 100,000 | LKR 200,000 |
|---|---|---|---|---|
| Gross Salary | 100% | 50,000 | 100,000 | 200,000 |
| EPF (Employer) | 12% | 6,000 | 12,000 | 24,000 |
| ETF (Employer) | 3% | 1,500 | 3,000 | 6,000 |
| Cost to Company | 115% | 57,500 | 115,000 | 230,000 |
| EPF (Employee) | 8% | 4,000 | 8,000 | 16,000 |
| Net Salary | 92% | 46,000 | 92,000 | 184,000 |
Frequently Asked Questions
How do I calculate my net salary in Sri Lanka?
Net salary = Gross salary - EPF (8%) - PAYE tax (if applicable). Employer contributes additional EPF (12%) and ETF (3%) which go to your retirement fund. Example: LKR 100,000 gross - LKR 8,000 EPF - LKR 0 tax (below threshold) = LKR 92,000 net salary.
What is EPF and how is it calculated?
EPF (Employees Provident Fund) is a mandatory retirement savings scheme. Employee contributes 8% of gross salary, employer contributes 12%. Total 20% goes to your EPF account. For LKR 100,000 salary: Employee LKR 8,000 + Employer LKR 12,000 = LKR 20,000/month saved for retirement.
What is ETF in Sri Lanka?
ETF (Employers Trust Fund) is 3% of gross salary paid by employer (not deducted from your salary). It provides additional retirement benefits. Employee does not contribute. For LKR 100,000 salary: Employer pays LKR 3,000 to ETF annually as lump sum or monthly installments.
What is the tax-free income threshold in Sri Lanka?
Tax-free threshold is LKR 100,000/month or LKR 1,200,000/year (2026). Income above LKR 100,000 is taxed at 6% on next LKR 500,000, 12% on next LKR 500,000, 18% on next LKR 500,000, 24% on next LKR 500,000, and 36% above LKR 3,000,000/year.
How is PAYE tax calculated in Sri Lanka?
PAYE (Pay As You Earn) is monthly tax deducted from salary. Calculate: Annual gross minus LKR 1,200,000 exemption, then apply tax rates. Example: LKR 150,000/month = LKR 1,800,000/year. Taxable: LKR 600,000. Tax: LKR 600,000 × 6% = LKR 36,000/year or LKR 3,000/month.
How do I calculate overtime pay in Sri Lanka?
Overtime is paid at 1.5x normal hourly rate for weekdays, 2x for weekends/holidays. Formula: Hourly rate = Monthly salary ÷ 200 hours (standard work month). Overtime pay = Hourly rate × 1.5 × OT hours. Example: LKR 100,000 salary ÷ 200 = LKR 500/hour. 10 OT hours = LKR 500 × 1.5 × 10 = LKR 7,500.
What deductions are mandatory from Sri Lanka salaries?
Mandatory deductions: EPF 8% (employee), PAYE tax (if applicable). Optional deductions: Loan repayments, insurance, pension contributions. Employer pays EPF 12% and ETF 3% directly to government - not deducted from your salary.
How to calculate annual salary increment?
Annual increments in Sri Lanka range from 8-20%. Formula: New salary = Current salary × (1 + increment%). Example: LKR 100,000 with 10% increment = LKR 100,000 × 1.10 = LKR 110,000. Inflation-based increments: CPI-linked adjustment (typically 5-8% in 2026).
What is the cost to company (CTC) vs in-hand salary?
CTC = Gross salary + Employer EPF (12%) + Employer ETF (3%). In-hand = Gross - Employee EPF (8%) - PAYE tax. Example: LKR 100,000 gross. CTC: LKR 115,000. In-hand: LKR 92,000 (no tax). Difference: LKR 23,000 goes to government funds.
How to calculate gratuity in Sri Lanka?
Gratuity is payable after 5 years of service. Formula: Last salary × 15 days × Years of service ÷ 26 (working days/month). Example: LKR 100,000 salary × 15/26 × 10 years = LKR 576,923. Maximum gratuity: LKR 1,000,000 for private sector (unless company policy allows higher).
What is the minimum wage in Sri Lanka 2026?
Minimum wage is LKR 21,000/month (2026). Domestic workers: LKR 14,000/month. Daily wage workers: LKR 800-1,000/day. These are floor rates - actual salaries vary by industry, experience, and location. Colombo wages are typically 20-40% higher than minimum.
How to negotiate salary using salary calculator?
Research: Use SalaryLK calculator to know market rates. Prepare: Calculate your expected CTC, gross, and net. Present: Show current vs requested salary with justification. Factor in: EPF benefits, allowances, bonuses, and remote work potential. Know walk-away point and alternatives.