Sri Lanka

Sri Lanka, an island nation in South Asia, is navigating economic reforms while striving to stabilize and grow its labor market. In 2025, the country continues to evolve its employment laws, tax obligations, and payroll practices to attract investment and ensure compliance.
Contractor Management
Currency
Sri Lankan Rupee (LKR)
Payroll Frequency
Monthly
Employer Taxes
15.00%

Overview

Population
~ 22 million
Language
Sinhala, Tamil
Capital
Colombo, Sri Jayawardenepura Kotte
Currency
Sri Lankan Rupee (LKR)
Country code
+94
Min wage
27,000 LKR / month
Working hours
9 hours per day
Weekdays
Monday to Friday
Work hours per week
45 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

15%

Tax Breakdown

Personal Income Tax (APIT):

Up to LKR 3,000,000
6%
LKR 3,000,001 – LKR 6,000,000
12%
Above LKR 6,000,000
18%

Corporate Income Tax (CIT):

Standard Rate
30%
Higher Rate
45% for specific industries (e.g., tobacco, alcohol)

Social Security Contributions:

Employee Contributions:

Employees Provident Fund (EPF)
8%

Employer Contributions:

EPF
12%
Employees Trust Fund (ETF)
3%
Social Security Contribution Levy (SSCL)
2.5%

VAT

VAT

8%

Tax Calculation for Sri Lanka
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LK
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Sri Lanka typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Inland Revenue Department (IRD) for tax purposes and the Department of Labour for EPF and ETF contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Sri Lanka
When drafting an employment contract for employees in Sri Lanka, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid by the employer for the first 3 days; thereafter, by Social Security at 60% of the employee's base salary
Maternity leave
  • 84 days; fully paid by Social Security

Paternity leave
  • Not statutory; subject to employer policies

Paternity Leave:

  • Not statutory; subject to employer policies

Parental Leave:

  • Not statutory; subject to employer policies

Bereavement Leave:

  • Not statutory; subject to employer policies
Annual Leave
  • Minimum of 14 days per year
26 Public holidays in Sri Lanka

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

13th
Duruthu Full Moon Poya Day
14th
Tamil Thai Pongal Day
4th
Independence Day
12th
Navam Full Moon Poya Day
26th
Mahasivarathri Day
13th
Medin Full Moon Poya Day
31st
Eid al-Fitr
12th
Bak Full Moon Poya Day
13th
Sinhala and Tamil New Year's Eve
14th
Sinhala and Tamil New Year Day
15th
Special Bank Holiday
18th
Good Friday
1st
Labor Day
12th
Vesak Full Moon Poya Day
13th
Day following Vesak Full Moon Poya
7th
Eid al-Adha
10th
Poson Full Moon Poya Day
10th
Esala Full Moon Poya Day
8th
Nikini Full Moon Poya Day
5th
Milad-Un-Nabi (Holy Prophet's Birthday)
7th
Binara Full Moon Poya Day
6th
Vap Full Moon Poya Day
20th
Deepavali Festival Day
5th
Il Full Moon Poya Day
4th
Unduvap Full Moon Poya Day
25th
Christmas Day
  • 14 Jan: Tamil Thai Pongal Day
  • 17 Jan: Duruthu Full Moon Poya Day
  • 4 Feb: National Day
  • 16 Feb: Navam Full Moon Poya Day
  • 1 Mar: Mahasivarathri Day
  • 17 Mar: Madin Full Moon Poya Day
  • 13 Apr: Day prior to Sinhala & Tamil New Year Day
  • 14 Apr: Sinhala & Tamil New Year Day
  • 15 Apr: Good Friday
  • 16 Apr: Bak Full Moon Poya Day
  • 1 May: May Day
  • 3 May: Id Ul-Fitr
  • 15 May: Vesak Full Moon Poya Day
  • 16 May: Day following Vesak Full Moon Poya Day
  • 14 Jun: Poson Full Moon Poya Day
  • 10 Jul: Id Ul-Alha
  • 13 Jul: Esala Full Moon Poya Day
  • 11 Aug: Nikini Full Moon Poya Day
  • 10 Sep: Binara Full Moon Poya Day
  • 9 Oct: Milad un-Nabi
  • 9 Oct: Vap Full Moon Poya Day
  • 24 Oct: Deepavali
  • 7 Nov: Ill Full Moon Poya Day
  • 7 Dec: Unduvap Full Moon Poya Day
  • 25 Dec: Christmas Day

Termination Process

Notice Period

  • Employee-Initiated: 1 week
  • Employer-Initiated: 1 week to 4 weeks, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 1 week's notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 1 week's notice

Personal Details

Name, contact information, and role of the employee.

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Challenges of Remote Hiring in _

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Grow Your Team in Sri Lanka
with RemotePass

Sri Lanka offers a strategic gateway to the South Asian market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Sri Lanka, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Sri Lanka.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

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Sri Lanka

Sri Lanka, an island nation in South Asia, is navigating economic reforms while striving to stabilize and grow its labor market. In 2025, the country continues to evolve its employment laws, tax obligations, and payroll practices to attract investment and ensure compliance.
Contractor Management
العملة
Sri Lankan Rupee (LKR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
15.00%

نظرة عامة

التركيبة السكانية
~ 22 million
اللغة
Sinhala, Tamil
العاصمة
Colombo, Sri Jayawardenepura Kotte
العملة
Sri Lankan Rupee (LKR)
رمز الاتصال الدولي
+94
الحد الأدنى للأجور
27,000 LKR / month
ساعات العمل
9 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
45 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

15%

تحصيل الضرائب

Personal Income Tax (APIT):

Up to LKR 3,000,000
6%
LKR 3,000,001 – LKR 6,000,000
12%
Above LKR 6,000,000
18%

Corporate Income Tax (CIT):

Standard Rate
30%
Higher Rate
45% for specific industries (e.g., tobacco, alcohol)

Social Security Contributions:

Employee Contributions:

Employees Provident Fund (EPF)
8%

Employer Contributions:

EPF
12%
Employees Trust Fund (ETF)
3%
Social Security Contribution Levy (SSCL)
2.5%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

8%

حساب الضريبة في Sri Lanka
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LK
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Sri Lanka عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Inland Revenue Department (IRD) for tax purposes and the Department of Labour for EPF and ETF contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Sri Lanka
عند إعداد عقد عمل للموظفين في Sri Lanka يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid by the employer for the first 3 days; thereafter, by Social Security at 60% of the employee's base salary
إجازة الأمومة
  • 84 days; fully paid by Social Security

إجازة الأبوة
  • Not statutory; subject to employer policies

Paternity Leave:

  • Not statutory; subject to employer policies

Parental Leave:

  • Not statutory; subject to employer policies

Bereavement Leave:

  • Not statutory; subject to employer policies
الإجازة السنوية
  • Minimum of 14 days per year
26 عطلات رسمية في Sri Lanka

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

13th
Duruthu Full Moon Poya Day
14th
Tamil Thai Pongal Day
4th
Independence Day
12th
Navam Full Moon Poya Day
26th
Mahasivarathri Day
13th
Medin Full Moon Poya Day
31st
Eid al-Fitr
12th
Bak Full Moon Poya Day
13th
Sinhala and Tamil New Year's Eve
14th
Sinhala and Tamil New Year Day
15th
Special Bank Holiday
18th
Good Friday
1st
Labor Day
12th
Vesak Full Moon Poya Day
13th
Day following Vesak Full Moon Poya
7th
Eid al-Adha
10th
Poson Full Moon Poya Day
10th
Esala Full Moon Poya Day
8th
Nikini Full Moon Poya Day
5th
Milad-Un-Nabi (Holy Prophet's Birthday)
7th
Binara Full Moon Poya Day
6th
Vap Full Moon Poya Day
20th
Deepavali Festival Day
5th
Il Full Moon Poya Day
4th
Unduvap Full Moon Poya Day
25th
Christmas Day
  • 14 Jan: Tamil Thai Pongal Day
  • 17 Jan: Duruthu Full Moon Poya Day
  • 4 Feb: National Day
  • 16 Feb: Navam Full Moon Poya Day
  • 1 Mar: Mahasivarathri Day
  • 17 Mar: Madin Full Moon Poya Day
  • 13 Apr: Day prior to Sinhala & Tamil New Year Day
  • 14 Apr: Sinhala & Tamil New Year Day
  • 15 Apr: Good Friday
  • 16 Apr: Bak Full Moon Poya Day
  • 1 May: May Day
  • 3 May: Id Ul-Fitr
  • 15 May: Vesak Full Moon Poya Day
  • 16 May: Day following Vesak Full Moon Poya Day
  • 14 Jun: Poson Full Moon Poya Day
  • 10 Jul: Id Ul-Alha
  • 13 Jul: Esala Full Moon Poya Day
  • 11 Aug: Nikini Full Moon Poya Day
  • 10 Sep: Binara Full Moon Poya Day
  • 9 Oct: Milad un-Nabi
  • 9 Oct: Vap Full Moon Poya Day
  • 24 Oct: Deepavali
  • 7 Nov: Ill Full Moon Poya Day
  • 7 Dec: Unduvap Full Moon Poya Day
  • 25 Dec: Christmas Day

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 1 week
  • Employer-Initiated: 1 week to 4 weeks, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 1 week's notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 1 week's notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Sri Lanka
مع ريموت باس

Sri Lanka offers a strategic gateway to the South Asian market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in Sri Lanka, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Sri Lanka.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

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