Calculate your personal income tax in Sri Lanka for the 2025-2026 fiscal year (April to March). Enter your monthly salary and see your APIT, EPF, and ETF breakdown instantly.
Enter your monthly salary to see the tax breakdown
Better HR comes with fully localized payroll engines for Sri Lanka — handling tax, insurance, and contribution rules automatically.
Automatically calculates PIT for regular monthly employment income:
Progressive tax rates applied according to IRD Table 1Monthly taxable income calculated accuratelyStandard reliefs and exemptions applied correctlyAutomatic monthly tax withholding integrated into payrollSupports accurate tax calculation for lump sum payments:
Applies IRD Table 2 tax rates for bonuses, gratuity, and other lump sum paymentsAutomatically distinguishes between regular income and lump sum paymentsEnsures correct withholding and compliance with IRD requirementsAccurate EPF calculations for both employee and employer contributions:
Standard contribution ratesCorrect handling of salary components subject to EPFAutomatic calculation per payroll cycleSimplifies ETF contributions according to statutory requirements:
Employer contribution: 3% of employee’s gross salaryAutomatic calculation per payroll cycleEPF 12% contribution for Employer
Automatically calculates employer’s mandatory 12% contribution to EPFIntegrated with overall payroll for compliance and reportingBetter HR automates payroll tax calculations for Sri Lanka and 8 other countries. Accurate, compliant, done in minutes.
Try Better HR FreeResidents of Sri Lanka earning more than LKR 1,800,000 per year (LKR 150,000 per month) are required to pay personal income tax through APIT (Advance Personal Income Tax). Employers deduct APIT from employee salaries monthly and remit it to the Inland Revenue Department. This applies to all residents and non-resident Sri Lankan citizens.
Sri Lanka's fiscal year runs from April 1 to March 31. APIT replaced the former PAYE (Pay As You Earn) system in 2020. From January 2023, APIT became mandatory for all employees. Employers must remit deducted tax to the IRD by the 15th of the following month.
Sri Lanka uses a progressive tax system with rates ranging from 6% to 36%. Personal relief is LKR 1,800,000, increased from LKR 1,200,000 in April 2025 under the Inland Revenue Amendment Act No. 2 of 2025. The first LKR 1,000,000 of taxable income is taxed at 6%, with rates increasing up to 36% on the balance.
EPF (Employees' Provident Fund): employees contribute 8% and employers contribute 12%, for a total of 20%. ETF (Employees' Trust Fund): employers contribute 3%. EPF is mandatory from day 1 of employment. The employee's 8% EPF contribution is deductible from taxable income.
APIT stands for Advance Personal Income Tax. It is the tax deducted by employers from employee salaries on a monthly basis and remitted to the Inland Revenue Department (IRD) on behalf of the employee.
The personal relief (tax-free threshold) is LKR 1,800,000 per year, or LKR 150,000 per month. This was increased from LKR 1,200,000 effective April 1, 2025.
Sri Lanka uses progressive tax rates: 6% on the first LKR 1,000,000, 18% on the next LKR 500,000, 24% on the next LKR 500,000, 30% on the next LKR 500,000, and 36% on the balance of taxable income.
Sri Lanka's fiscal year runs from April 1 to March 31 of the following year. Tax calculations are based on income earned during this period.
The employee contributes 8% and the employer contributes 12% of total monthly earnings to the Employees' Provident Fund. The employee's 8% EPF contribution is deductible from taxable income when calculating APIT.
ETF stands for Employees' Trust Fund. The employer contributes 3% of the employee's total monthly earnings to the ETF. This amount is not deducted from the employee's salary.
Qualifying payments are deductions available for donations to approved charities, government institutions, and the President's Fund. The maximum deduction is the lower of one-third of assessable income or LKR 75,000.
Effective April 1, 2025, personal relief increased from LKR 1,200,000 to LKR 1,800,000. The first tax slab increased from LKR 500,000 to LKR 1,000,000. The 12% tax slab was removed entirely.
Better HR automatically calculates APIT, EPF, and ETF for Sri Lankan employees. It generates payslips with full tax breakdowns, handles all statutory deductions, and produces reports for IRD filing.
