Salary Calculator Sri Lanka — Gross to In-Hand (EPF + Tax)

EPF and ETF are not the same—only one reduces your payslip

Your employer deducts 8% of your salary to the Employees' Provident Fund (EPF) each month. The Employees' Trust Fund (ETF) is 3%, but this is paid entirely by your employer and never deducted from your salary. Only the 8% EPF affects your take-home pay. This calculator shows both contributions for completeness, but ETF contributes zero to your salary deductions.

Your total retirement contribution is much larger than 8%

The 8% EPF you see deducted is only your share. Your employer contributes to EPF as well, and funds the entire 3% ETF independently. The total amount credited to your retirement account each month is significantly more than the 8% reduction on your payslip. When you leave employment, your final balance reflects all of these contributions, not just your 8% deduction.

Advance Personal Income Tax is spread across 12 months

APIT (Advance Personal Income Tax) appears on every payslip because it is withheld monthly rather than settled once a year. The LKR 1,200,000 annual personal relief is apportioned across the twelve months rather than used up at the start of the year, so each month is assessed against its share of the relief. That is why a month containing a bonus or arrears can attract tax even when your annual earnings sit close to the threshold: the month is measured on its own, and the reconciliation happens later.

How tax bands work and what this calculator excludes

Income tax in Sri Lanka is calculated in bands. After the LKR 1,200,000 personal relief is subtracted, the remaining income is taxed at: 6% on the first LKR 500,000; 12% on the next LKR 500,000; 18%, 24%, and 30% on subsequent LKR 500,000 brackets; and 36% on income above LKR 2,500,000. This calculator applies these bands to your annual earnings. It does not account for employer-specific salary deductions, loans, salary advances, voluntary contributions, or taxable non-cash benefits. For precise figures, confirm with the Inland Revenue Department or your payroll department.

Compare with the income tax calculator for the full tax system, and the VAT calculator for the consumption-tax side.