Multi-Country Payroll
Automate multi-country payroll with localized tax, statutory deductions, approvals, and bank-ready disbursement workflows.
Sri Lanka's Complete HR & Payroll Platform—Reliable, Fast, and Easy
Streamline employee data, attendance, leave, payroll calculation, performance appraisal and recruitment with Better HR. PAYE and income tax calculator and compatible with Sri Lanka Labor Law and Office Act.
1,000+ companies across APAC run payroll on Better HR monthly
HRMS Core Payroll Features
Web, Mobile App and Hundreds of AI Agent working alongside your HR department to make 99% of manual workload go away.
Compliance and reporting in Sri Lanka
Better HR comes with fully localized payroll engines for Sri Lanka — handling tax, insurance, and contribution rules automatically.
Automated calculations
Personal Income Tax (PIT) - Table 1
Automatically calculates PIT for regular monthly employment income:
- Progressive tax rates applied according to IRD Table 1
- Monthly taxable income calculated accurately
- Standard reliefs and exemptions applied correctly
- Automatic monthly tax withholding integrated into payroll
Personal Income Tax (PIT) - Table 2 (Lump Sum Tax)
Supports accurate tax calculation for lump sum payments:
- Applies IRD Table 2 tax rates for bonuses, gratuity, and other lump sum payments
- Automatically distinguishes between regular income and lump sum payments
- Ensures correct withholding and compliance with IRD requirements
Employees' Provident Fund (EPF)
Accurate EPF calculations for both employee and employer contributions:
- Standard contribution rates
- Correct handling of salary components subject to EPF
- Automatic calculation per payroll cycle
Employees' Trust Fund (ETF)
Simplifies ETF contributions according to statutory requirements:
- Employer contribution: 3% of employee's gross salary
- Automatic calculation per payroll cycle
Employees' Provident Fund for Employer
EPF 12% contribution for Employer
- Automatically calculates employer's mandatory 12% contribution to EPF
- Integrated with overall payroll for compliance and reporting
Government statutory reports
EPF C Form
Sri Lanka government statutory EPF C Form is used for completing PAYE tax and income tax Taxation purpose which is available for you to download and ready to use.
ETF Bank Format
Automatically generate ETF bank files directly from Better HR payroll software—ready for secure submission to banks without manual formatting.
EPF Bank Format
Automatically generate EPF bank files directly from Better HR payroll software—ready for secure submission to banks without manual formatting.
Sri Lanka Form 2 (Jan to Jun)
Better HR allows you to effortlessly generate Form 2 for the first half of the year (January to June), ensuring full compliance with Sri Lanka statutory requirements.
Sri Lanka Form 2 (Jul to Dec)
Better HR allows you to effortlessly generate Form 2 for the second half of the year (July to December), ensuring full compliance with Sri Lanka statutory requirements.
Why Better HR for Sri Lanka
- Fully localized for Sri Lanka with EPF, ETF, and PAYE calculations built in
- IRD Table 1 and Table 2 tax rates applied automatically. No manual lookups
- EPF C Form, ETF bank files, and Form 2 reports generated with one click
- 399 LKR per employee per month with annual billing. All features included
- Compliant with Sri Lanka Labour Law and the Shop and Office Act
- Employee and employer EPF/ETF contributions calculated per payroll cycle
- Payslips in LKR with full tax and contribution breakdown for every employee
- Same-day customer support for companies across Colombo and Sri Lanka
Ready to simplify payroll in Sri Lanka?
Set up in minutes. No credit card required.
Related features
Modules that power payroll in Sri Lanka.
View module
Workforce Management
Manage attendance, leave, overtime, and employee records in one HR system with real-time approvals and payroll-ready data.
AI-Powered Operations
Use an AI HR agent to automate routine payroll and HR tasks, answer policy questions, and execute operational requests faster.
Frequently asked questions
1. Does Better HR calculate EPF and ETF contributions automatically?
Yes. Better HR calculates employee EPF (8%), employer EPF (12%), and employer ETF (3%) contributions automatically based on each employee's gross salary. The system generates EPF C Forms and bank-ready files for submission.
2. How does Better HR handle PAYE income tax for Sri Lanka?
Better HR applies IRD Table 1 progressive tax rates for regular monthly income and IRD Table 2 rates for lump sum payments like bonuses and gratuity. Standard reliefs and exemptions are applied automatically. Monthly tax withholding is integrated into payroll.
3. Can Better HR generate Form 2 for statutory filing?
Yes. Better HR generates Form 2 for both halves of the year: January to June and July to December. These reports are generated automatically from your payroll data and are ready for filing with the relevant authorities.
4. Does the payroll support Sri Lankan Rupees (LKR)?
Yes. Payroll is processed in LKR by default. Payslips show full breakdowns including gross salary, EPF and ETF contributions, PAYE tax, allowances, and net pay. Multi-currency is also supported for international staff.
5. How much does Better HR cost in Sri Lanka?
Better HR costs 399 LKR per active employee per month with annual billing, or 499 LKR per employee with monthly billing. All modules are included: payroll, attendance, leave, recruitment, performance reviews, and AI agent. No setup fees.
6. Does Better HR comply with Sri Lanka labour law?
Yes. Better HR's payroll engine is configured for Sri Lanka labour law requirements including EPF and ETF contributions, PAYE tax withholding, leave entitlements under the Shop and Office Act, and overtime rules. The system is updated when regulations change.
7. Can Better HR generate EPF and ETF bank files?
Yes. Better HR generates bank-ready EPF and ETF contribution files directly from payroll data. These files are formatted for secure submission to banks without any manual formatting or re-entry.
8. Does Better HR handle lump sum tax calculations like bonuses and gratuity?
Yes. Better HR automatically distinguishes between regular income and lump sum payments. Bonuses, gratuity, and other one-off payments are taxed using IRD Table 2 rates, while regular salary uses Table 1. This ensures correct withholding for both types.