Link to Employer Payroll Tax.
Employers are required to pay a half-month’s salary for each year of completion if the employee’s service period exceeds five years at the time of retirement, resignation, or retrenchment.
Link to Employee Payroll Tax.
Sri Lanka follows a progressive income tax model. Link to Employee Income Tax.
The statutory minimum wage is LKR 10,000 a month or LKR 400 a day.
Wages can be paid on daily, weekly, fortnightly or monthly basis. However, a wage period cannot exceed a month.
13th month salary
Not mandatory for private enterprises.
The daily working hours cannot exceed 9 hours if the meal or rest time do not exceed one hour.
If the rest time exceeds one hour, the working hours must be less than 9 hours + additional rest time given.
Weekly working hours cannot exceed 45 hours per week.
The maximum overtime hour is 12 hours per week, and overtime is paid at 150% of the employee’s hourly pay.
The public holidays can be found here.
Employees are entitled 14 days of annual vacation after their first full year of employment.
Employees are entitled to 7 days of paid casual leave in any year, except during the first calendar year of employment
12 weeks paid maternity leave where 2 weeks is before confinement and 10 weeks after the day of confinement.
In the case of the birth of a non-live child, the paid maternity leave is 6 weeks, where 2 weeks is before the confinement and 4 weeks after the day of confinement.
The termination process is moderately simple.
Either the prior written consent of the employee or the prior written approval of the Commissioner of Labor is required to terminate the services of an employee.
In the case of closure of establishment or removal of employees due to winding up of sections or retrenchment, employers should apply for the approval of the Labor Commissioner.
Workers may be retrenched only after giving at least one month’s notice. A worker is eligible for this one month notice only after one year of service.
Not mandatory. Probation is capped at 1 year for supervisory or technical job roles, while probation is capped at 6 months for any other employee.