Sri Lanka Salary Calculator
APIT · EPF/ETF · Government salary revision (Circular 10/2025)
🧾 Tax & deductions guide
How APIT, EPF/ETF and government phasing work in the 2025/26 and 2026/27 years of assessment.
Estimates only — not professional tax, legal or HR advice. Verify with your payroll office.
The step-by-step calculation
1. Take your gross monthly emoluments (basic + regular allowances, including COLA where applicable). 2. Subtract the personal relief of Rs 150,000 per month (Rs 1,800,000 per year, Inland Revenue (Amendment) Act No. 2 of 2025). 3. Multiply the monthly taxable income by 12. 4. Apply the progressive slabs (IRD APIT Table 01, Y/A 2025/26 & 2026/27): 6% up to Rs 1,000,000 of taxable income, 18% to Rs 1,500,000, 24% to Rs 2,000,000, 30% to Rs 2,500,000, 36% above. 5. Divide the annual tax by 12 — that is your monthly APIT.
The employer withholds this amount every month, so the tax on your payslip is the same tax you would owe on your annual return for employment income alone.
Worked example: Rs 250,000 per month
Gross Rs 250,000 − relief Rs 150,000 = Rs 100,000 taxable/month → Rs 1,200,000 taxable/year. Tax = 6% × Rs 1,000,000 (Rs 60,000) + 18% × Rs 200,000 (Rs 36,000) = Rs 96,000/year → Rs 8,000/month.
At Rs 400,000/month the same steps give Rs 3,000,000 taxable: 60,000 + 90,000 + 120,000 + 150,000 + 36% × 500,000 (180,000) = Rs 600,000/year → Rs 50,000/month. Both figures match the IRD's published examples and the calculator's output.
What does NOT reduce your tax
Employee EPF and pension contributions are not deductible — tax is charged on gross emoluments minus the relief. Loan repayments, insurance and union fees are also after-tax deductions: they reduce your take-home, never your tax base.
Bonuses, arrears and reconciliation
A bonus or 13th-month payment is taxed at the flat lump-sum rate (12%) in the month it is paid, not at your marginal rate. Salary arrears are usually taxed in the month they are paid — treatment varies by payroll system.
At the end of the tax year (April–March) the APIT withheld is credited against your final liability; most employees with only employment income owe nothing further and need no return.
APIT (PAYE)
APIT (PAYE) is deducted by the employer every month using the annual relief of Rs 1,800,000 (Rs 150,000/month). The balance is taxed in progressive slabs:
EPF/ETF contributions are not deductible for APIT. The effective rate and a slab-by-slab breakdown are shown in the results.
EPF & ETF
EPF is 8% of the employee and 12% of the employer; ETF is 3% of the employer. The base is basic salary plus regular allowances (including COLA) that carry EPF — overtime and bonuses are excluded. There is no salary cap, and the amount subject to EPF is printed on every payslip.
Bonus & lump sums
Lump-sum payments (bonus, 13th month) are taxed at a flat rate (12% in this version), separate from the progressive slabs, and excluded from EPF/ETF.
Government phasing (Circular 10/2025)
New salary scales are paid in phases: 30% from April 2025, 65% from January 2026, and 100% from January 2027 — with the first Rs 12,500 of any increase paid immediately. COLA (Rs 17,800) is paid separately, and pension (8% employee / 16% government) and W&OP apply to post-2020 appointees.
No-pay leave & late minutes
Unpaid leave days reduce basic salary and leave-sensitive allowances pro rata; late minutes are deducted per the payroll basis (÷240 hours etc.).
Frequently asked questions
Does the relief apply every month?
Yes — the employer applies Rs 150,000 of relief each month (IRD APIT Table 01). If you have more than one job, tell both payroll offices; relief duplication is resolved in your annual return.
Is my EPF deducted before tax?
No. EPF is a deduction from your net pay, not from your taxable income. Tax is charged on gross emoluments minus the relief.
How are salary arrears taxed?
Arrears are normally taxed in the month they are paid, at your marginal rate for that month's income — which can push that month into a higher bracket. Treatment varies; check with your payroll office.
Do I need to file a return?
Most employees with only employment income do not — APIT withheld equals their final liability. File a return if you have other income, multiple employers, or reliefs the employer did not apply.