Sri Lanka Salary & APIT Tax Calculator 2026/271. Monthly earnings
Basic salary and allowances paid each month
Allowances
Tick whether each one counts for EPF/ETF and for APIT.
2. Contributions & deductions
Statutory contributions and other monthly deductions
Worked out from EPF/ETF-liable earnings. Only the employee's 8% EPF is deducted from salary.
Other deductions
Loans, advances, welfare and other after-tax deductions.
Total monthly EPF credited to the employee's account (employee + employer): Rs. 0.00. Annual figures are 12 × the monthly amounts and exclude bonuses.
| Monthly taxable income band | Rate | Income in band | APIT |
|---|---|---|---|
| Total monthly APIT | Rs. 0.00 | ||
How take-home salary is calculated in Sri Lanka
Net salary is gross earnings minus the employee's 8% EPF contribution, APIT (often still called PAYE) and any other deductions. On top of the gross salary, the employer pays 12% EPF and 3% ETF, so the total cost of an employee is higher than their gross pay.
Example: Rs. 300,000 monthly basic salary
| Gross salary | Rs. 300,000.00 |
| Employee EPF (8%) | − Rs. 24,000.00 |
| APIT (24% marginal band) | − Rs. 18,500.00 |
| Net take-home salary | Rs. 257,500.00 |
| Employer EPF (12%) | Rs. 36,000.00 |
| Employer ETF (3%) | Rs. 9,000.00 |
| Total cost to employer | Rs. 345,000.00 |
Monthly APIT tax table 2026/27
| Monthly taxable income | Rate | Max tax in band |
|---|---|---|
| Up to Rs. 150,000 | 0% | Rs. 0 |
| Rs. 150,001 – 233,333 | 6% | Rs. 5,000 |
| Rs. 233,334 – 275,000 | 18% | Rs. 7,500 |
| Rs. 275,001 – 316,667 | 24% | Rs. 10,000 |
| Rs. 316,668 – 358,333 | 30% | Rs. 12,500 |
| Above Rs. 358,333 | 36% | No limit |
Net to gross: finding the salary for a target take-home
When you agree a take-home figure with a new hire, switch to Net to Gross and enter that amount. The calculator works backwards through APIT and EPF to give the basic salary and gross pay needed, plus the full employer cost.
Last updated: October 2026. Rates follow the IRD APIT tables effective 1 April 2025; no changes have been announced for Y/A 2026/27.
Run Sri Lankan payroll without the spreadsheets
PeoplesHR applies EPF, ETF and APIT automatically, with statutory returns and payslips built in.
Frequently asked questions
What is the tax-free salary in Sri Lanka for 2026/27?
Employees get personal relief of Rs. 1,800,000 a year, which is Rs. 150,000 a month. A monthly taxable salary up to Rs. 150,000 has no APIT deducted.
How is APIT calculated for 2026/27?
Income above the Rs. 1,800,000 personal relief is taxed at 6% on the first Rs. 1,000,000, then 18%, 24% and 30% on each next Rs. 500,000, and 36% on the rest. These rates took effect on 1 April 2025 and no changes have been announced for 2026/27. Monthly APIT under Table 01 spreads the annual bands evenly across 12 months. See the Inland Revenue Department APIT tables.
Is APIT the same as PAYE?
Yes, for salaries. APIT (Advance Personal Income Tax) replaced PAYE under the Inland Revenue Act No. 24 of 2017. Many people still call it PAYE. It's the income tax employers deduct from monthly salary.
Is EPF deducted before APIT is worked out?
No. The employee's 8% EPF contribution doesn't reduce taxable employment income, so APIT is calculated on the full taxable salary. Contribution rules are published by the Employees’ Provident Fund.
Which earnings count for EPF and ETF?
EPF and ETF are based on "total earnings": basic salary plus allowances such as cost-of-living, special and fixed allowances. Overtime and certain other payments are excluded. Use the EPF/ETF tick on each allowance to match how your organisation treats it. For guidance, see the Department of Labour, the EPF and the Employees’ Trust Fund Board.
How does the net to gross salary calculator work?
Enter the take-home salary you want to pay. The calculator keeps your allowances and deductions as entered and finds the basic salary that produces that net amount after EPF, APIT and deductions.
Are bonuses included?
No. Bonuses, arrears and other lump-sum payments are taxed under separate APIT tables. This calculator covers regular monthly pay from primary employment only.