What is EPF and ETF in Sri Lanka?

The Employees' Provident Fund (EPF) is a retirement fund you and your employer both pay into: at least 8% of your total earnings is deducted from your pay, and your employer adds at least 12%. The Employees' Trust Fund (ETF) is a separate 3% paid entirely by your employer. Nothing is deducted from you for ETF. Both are calculated on total earnings, not on taxable income, and neither is affected by the personal relief.

What counts as total earnings for EPF and ETF?

Both funds use the same list: salary, wages or fees; cost of living, special living and similar allowances; the cash value of food supplied by the employer, and food allowances; payments in the form of commissions, piece rates and contract payments; and any other remuneration that may be specified. The EPF list also includes holiday pay.

When must an employer pay EPF and ETF contributions?

Both funds require each month's contributions to reach them on or before the last working day of the following month. The EPF imposes surcharges on late payment, and the employer remains responsible even if an employee does not want to contribute.

When can I withdraw my EPF?

On reaching retirement age and leaving employment: 55 for men and 50 for women, according to the EPF. Earlier refunds are available in specific cases, including women leaving work on marriage within the time limits, total incapacity, leaving Sri Lanka for permanent residence abroad, and taking up a permanent pensionable post in government service.

Can EPF contributions be more than 8% and 12%?

Yes. The EPF describes both as minimums: at least 8% of total monthly earnings from the employee and at least 12% from the employer. An employer can agree to pay more, and the calculator lets you enter higher rates.

Can my employer deduct ETF from my salary?

No. The ETF Board states that the 3% contribution is paid by the employer and is not to be deducted from the employee's monthly salary or wages.

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EPF and ETF calculator

What goes into your Employees' Provident Fund and Employees' Trust Fund each month: 8% of your total earnings from you, 12% from your employer into EPF, and 3% from your employer into ETF.

Rates and the definition of total earnings from the EPF Department of the Central Bank of Sri Lanka and the ETF Board. Nothing you type leaves your browser.

By Dr. Dulan DiasLast reviewed against EPF and ETF publications on 25 October 2026

Your monthly total earnings

Total earnings per month

LKR

Salary or wages, cost of living and similar allowances, food allowances, commissions, piece-rate and holiday pay, as the EPF defines total earnings.

Employee EPF rate

Employer EPF rate

ETF is fixed at 3%, paid by the employer.

EPF and ETF are worked out on total earnings, not on taxable income, and do not change your income tax. For tax and take-home pay together, use the salary and PAYE calculator.

How it is worked out

Each contribution is a straight percentage of the month's total earnings. The income tax personal relief plays no part.

EPF, employee: a minimum of 8%, deducted from your pay.
EPF, employer: a minimum of 12%, paid on top of your pay.
ETF, employer: 3%, paid on top of your pay and never deducted from it.

Worked example

Total earnings of LKR 150,000 a month.

EPF and ETF on LKR 150,000 a month
Total earnings	150,000
EPF from the employee, 8%	12,000
EPF from the employer, 12%	18,000
Credited to EPF	30,000
ETF from the employer, 3%	4,500
Employer's cost on top of salary	22,500

The employee's pay falls by LKR 12,000 for EPF. The employer pays LKR 22,500 more than the salary, and LKR 34,500 a month goes into the two funds.

Sources

Every rate and rule on this page comes from the documents below, checked on 25 October 2026. Where they and this page differ, they are right.

Remitting ContributionsEmployees' Provident Fund Department, Central Bank of Sri Lanka
Employer Details: Calculation of the ContributionsEmployees' Trust Fund Board
Retirement BenefitsEmployees' Provident Fund Department, Central Bank of Sri Lanka

Questions about EPF and ETF

What is EPF and ETF in Sri Lanka?: The Employees' Provident Fund (EPF) is a retirement fund you and your employer both pay into: at least 8% of your total earnings is deducted from your pay, and your employer adds at least 12%. The Employees' Trust Fund (ETF) is a separate 3% paid entirely by your employer. Nothing is deducted from you for ETF. Both are calculated on total earnings, not on taxable income, and neither is affected by the personal relief.
What counts as total earnings for EPF and ETF?: Both funds use the same list: salary, wages or fees; cost of living, special living and similar allowances; the cash value of food supplied by the employer, and food allowances; payments in the form of commissions, piece rates and contract payments; and any other remuneration that may be specified. The EPF list also includes holiday pay.
When must an employer pay EPF and ETF contributions?: Both funds require each month's contributions to reach them on or before the last working day of the following month. The EPF imposes surcharges on late payment, and the employer remains responsible even if an employee does not want to contribute.
When can I withdraw my EPF?: On reaching retirement age and leaving employment: 55 for men and 50 for women, according to the EPF. Earlier refunds are available in specific cases, including women leaving work on marriage within the time limits, total incapacity, leaving Sri Lanka for permanent residence abroad, and taking up a permanent pensionable post in government service.
Can EPF contributions be more than 8% and 12%?: Yes. The EPF describes both as minimums: at least 8% of total monthly earnings from the employee and at least 12% from the employer. An employer can agree to pay more, and the calculator lets you enter higher rates.
Can my employer deduct ETF from my salary?: No. The ETF Board states that the 3% contribution is paid by the employer and is not to be deducted from the employee's monthly salary or wages.