What salary is tax-free in Sri Lanka?

A monthly gross of up to Rs. 150,000 (Rs. 1.8 million per year) attracts no APIT under the current 2026/27 personal relief. The IRD's latest published APIT tables are labelled 2025/26, and the statutory rates remain effective from 1 April 2025. EPF at 8% of eligible monthly earnings and the Rs. 25 stamp duty can still apply, so take-home remains below gross.

How is EPF deducted from my salary?

The statutory minimum employee EPF contribution is 8% of total monthly earnings, while the employer adds 12% EPF. The employer also pays 3% ETF on total monthly earnings. Official definitions include salary and specified allowances, although the contributory earnings figure shown on a payslip can differ from headline gross where excluded payments apply.

What is the difference between basic salary and gross salary?

Basic salary is one component of gross salary; gross includes basic plus allowances and other remuneration. APIT applies to taxable employment income. EPF and ETF use statutory total-earnings definitions that include salary and specified allowances, so do not assume every allowance is automatically excluded.

How do I calculate my take-home salary?

Take-home = Gross salary minus APIT income tax minus employee EPF at 8% of EPF-eligible earnings minus applicable stamp duty. For example, Rs. 200,000 gross with the full amount EPF eligible gives Rs. 180,975 take-home after APIT of Rs. 3,000, EPF of Rs. 16,000, and Rs. 25 stamp duty.

Why is my increment worth less than I expected?

A raise increases your gross, but APIT and EPF rise with it, and if the raise pushes you into a higher tax band, the portion above the band boundary is taxed at the higher rate. Only the excess is affected (there's no cliff), but the take-home gain is always smaller than the gross gain. The sweet-spot hint shows the largest raise that stays inside your current band.

How much tax will I pay on my bonus?

Bonuses are taxed under APIT Table 02: your annual income is estimated first, and the bonus is taxed at whichever band it lands in on top of that. The rate can be higher than your usual monthly slab. No EPF is deducted from bonuses.

VERIFIED 17 JULY 2026 · CURRENT FOR 2026/27

Sri Lanka payslip calculation methodology

This is the public specification behind every MyPayslip.lk result. It states the formulas, contribution assumptions, rounding behavior, test cases and official evidence so a person, payroll reviewer or software agent can reproduce the numbers.

The IRD's latest published APIT tables are labelled 2025/26. The Rs. 1.8 million relief and progressive rates apply from 1 April 2025, and the June 2026 amendment does not replace this regular primary-employment rate schedule. MyPayslip therefore applies the same rates to the current 2026/27 year of assessment.

Methodology JSON Calculator OpenAPI Reference code

Monthly calculation order

01Use monthly gross employment income for APIT.
02Apply the Rs. 150,000 monthly personal relief and progressive bands.
03Apply employee EPF at 8% of EPF-eligible total monthly earnings.
04Add Rs. 25 stamp duty when gross remuneration exceeds Rs. 25,000.
05Subtract employee-side deductions from gross to calculate net pay.
06Show employer EPF at 12% and ETF at 3% separately; neither reduces net pay.

APIT bands used

Monthly taxable sliceRate

First Rs. 150,0000% relief

Next Rs. 83,333.336%

Next Rs. 41,666.6718%

Next Rs. 41,666.6724%

Next Rs. 41,666.6730%

Balance36%

The monthly slices are the annual IRD bands divided by 12. Calculations retain decimal precision internally and displayed values are rounded to two decimal places.

EPF and ETF contribution base

The default contribution base is the full gross salary because the official definitions use total monthly earnings, including salary and specified allowances. The calculator also accepts a separate contribution base for excluded or unusual payments when payroll records show an eligible amount below headline gross.

Employee EPF

Deducted from pay

Employer EPF

12%

Employer-funded

Employer ETF

Employer-funded

Reproducible test cases

These examples assume the full gross salary is EPF and ETF eligible. They are regression-tested in the application.

Gross	APIT	EPF 8%	Stamp	Net pay
Rs. 150,000	Rs. 0	Rs. 12,000	Rs. 25	Rs. 137,975
Rs. 200,000	Rs. 3,000	Rs. 16,000	Rs. 25	Rs. 180,975
Rs. 300,000	Rs. 18,500	Rs. 24,000	Rs. 25	Rs. 257,475
Rs. 500,000	Rs. 86,000	Rs. 40,000	Rs. 25	Rs. 373,975

Primary sources

Statutory claims are checked against the responsible Sri Lankan authority. A visible verification date changes only after these sources are reviewed again.

IRD APIT tablesLatest published primary-employment tables (2025/26)IRD income-tax lawRs. 1.8 million relief for years from 1 April 2025 Inland Revenue Amendment Act No. 11 of 2026Latest amendment reviewed for 2026/27 CBSL EPF guidance8% employee and 12% employer minimum ETF Board guidance3% employer contribution on total earnings IRD stamp dutyRs. 25 on salary receipts above Rs. 25,000

Scope and limitations

The standard calculator models regular monthly profits from primary employment. Secondary employment, non-resident treatment, benefits in kind, arrears, terminal benefits and some lump-sum payments can use different IRD tables.

Results are estimates for review, not payroll, legal or tax advice. Confirm exceptional payments with payroll or the relevant authority.

Verification history

17 Jul 2026Rechecked IRD APIT and income-tax law, the June 2026 amendment, stamp duty, CBSL EPF, and ETF Board guidance. Published this reproducible specification.