The Employees' Provident Fund (EPF, Act No. 15 of 1958) and the Employees' Trust Fund (ETF, Act No. 46 of 1980) are mandatory savings schemes for most private-sector employees in Sri Lanka. Between them they take three contributions: 8% of your earnings from you (employee EPF), 12% from your employer into the same EPF account, and 3% from the employer into the ETF.

None of this money is 'lost' — it is your statutory savings. The employer's 12% and 3% are paid on top of your salary; the 8% is deducted from what you would otherwise take home.

EPF is a provident (savings) fund: contributions accrue in your individual account, earn interest set by the fund, and are paid out mainly at retirement, emigration, disablement or the death of a member (to the family). Amounts can also be withdrawn earlier in limited cases (e.g. housing schemes) — while leaving a part behind.

ETF is a welfare fund run for employees generally: employers' 3% contributions fund benefits for the workforce, including a personal accident/disability scheme for contributing employees. The ETF does not build your personal balance the way EPF does.

Contributions are calculated on 'total monthly earnings': your basic salary plus regular allowances that carry EPF — including COLA, food and transport-type fixed allowances. There is no salary cap; the amount subject to EPF is printed on every payslip from this site.

Excluded: overtime, bonuses and reimbursements. Overtime is real money you earn for extra hours, but it does not attract EPF/ETF; neither do annual bonuses. That is why the calculator keeps overtime and bonus outside the EPF base by default.

Most non-government employees in the private and semi-government sectors with monthly earnings above the applicable threshold are covered. Pensionable public officers are generally outside EPF/ETF — their counterpart is the public pension scheme. State corporations, contract staff and some casual posts may still be members; the government tab in the calculator has an EPF toggle for exactly this situation.

Certain small categories (minor employees in some trades, members of approved private schemes, etc.) can be exempt — the EPF circulars prescribe the details, and your employer's registry can confirm your status.

Employers must remit both funds within 30 days after the end of each month. Late remittance attracts interest and penalties under the Acts, and officers can raise non-remittance concerns with the Central Bank of Sri Lanka / Employees' Provident Fund. If your employer deducts EPF from your pay but fails to remit, that is a serious compliance matter, not a tax deduction.

Basic Rs 150,000, no EPF-8%-deductible difference elsewhere: your payslip shows employee EPF Rs 12,000 (8%); the employer pays EPF Rs 18,000 (12%) and ETF Rs 4,500 (3%) on top. The employee's take-home drops by Rs 12,000, while the employer's real cost is Rs 172,500 — exactly what the Employer cost tool shows.

At the end of your career the accumulated EPF balance (both shares plus interest) is paid to you; the terminal-benefit tax rates are 0% up to Rs 10,000,000, 6% between Rs 10–20 million and 12% above (Y/A 2025/26).