Powering Payroll, Compliance & Workforce Management in Sri Lanka

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Simplify Payroll, Compliance & Hiring in Sri Lanka with Us

How We Help You with Payroll & Compliance in Ghana

Whether you're hiring your first employee or managing hundreds, our team helps you navigate local laws and execute flawless payroll.

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Payroll Outsourcing

Accurate, compliant payroll processing—including local tax filings, reporting, and payslip delivery.

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Employer of Record

Hire employees without a legal entity. We act as legal employer and handle all compliance responsibilities.

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Payroll Software – Sri Lanka

Global payroll software built for complexity—configurable, compliant, and integrated with your HR stack.

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Compliance Services

Tax and statutory support for onboarding, terminations, and filings in
Sri Lanka
, standalone or bundled.
Customize your Payroll Solution

Sri Lanka at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Sri Lanka
Work Permits & Visas

Foreign nationals must obtain a visa before entering Sri Lanka.

  • Visa Types:
    • Transit Visa: Up to 48 hours.
    • Visitor Visa: Up to 30 days; extendable to 90 days for business or leisure.
    • Residence Visa: For work or study; valid for 1 year and renewable annually.
  • Employment Requirement:
    Workers relocating to Sri Lanka must first obtain an entry visa in their home country before applying for a residence visa locally.
Payroll
  • Payroll Frequency: Weekly, bi-weekly, fortnightly, or monthly.
  • Income: All earnings from employment and business.
  • Employer Contributions:
    • Social Security Family Allowance – 5.75%
    • Work Injury Fund – 2–5%
    • Employees Provident Fund – 12% (employer) / 8% (employee)
    • Employees Trust Fund – 3%
  • Benefits in Kind: Not mandatory but may be offered.
  • Deductions: Taxes, social security, and donations, limited to one-third of taxable income.
  • Minimum Wage:
    • Rs. 27,000/month (Rs. 1,080/day) – effective April 2025
    • Rs. 30,000/month (Rs. 1,200/day) – effective January 2026
    • Employment Contracts
  • Contract Types: Fixed-term or open-ended.
  • Probation: Typically six months; must be clearly stated in the contract.
  • Working Hours: Maximum 45 hours per week.
  • Overtime: Up to 12 hours weekly; paid at 1.5x the regular hourly rate.
  • Notice Period:
    • No notice required for <1 year of service.
    • 1 month’s notice after 1 year of service.
  • Termination: Notice required before ending employment.
  • Severance Pay:
    • 2.5 months per year (1–5 years), capped at 12.5 months.
    • 2 months per year (6–14 years), capped at 30.5 months.
    • 1.5 months per year (15–19 years), capped at 38 months.
    • 1 month per year (20–24 years), capped at 40 months.
    • 0.5 month per year (25–34 years), capped at 48 months.
  • Non-Compete: Permitted if contractually defined.
    • Employee Benefits
  • Social Security:
    • Family Allowance (5.75%), Work Injury Fund (2–5%), Provident Fund (12%/8%), Trust Fund (3%).
  • Retirement: Covered under social security schemes.
  • Health: Public healthcare system; private schemes optional.
  • Annual Leave: 14 paid days after 12 months of continuous service.
  • Sick Leave: 7 paid days after 1 year of continuous service.
  • Maternity Leave: 12 weeks (2 weeks pre-delivery, 10 weeks post-delivery), fully paid via social security.
  • Public Holidays: 25 per year.
    • Tax Overview
  • Tax Residency:
    • Resident if in Sri Lanka ≥183 days in a 12-month period, or a Sri Lankan government employee abroad.
  • Tax Year: April 1 – March 31.
  • Tax Rates: Progressive, 6% to 36%.
  • Scope:
    • Residents taxed on worldwide income.
    • Non-residents taxed on Sri Lanka-sourced income.
  • Double Taxation Treaties: In place with multiple countries.

    • ‍

    Personal Income Tax
    Taxable Monthly Income (LKR) Rate of Tax
    Up to 100,0000%
    100,001 – 141,6676%
    141,668 – 183,33312%
    183,334 – 225,00018%
    225,001 – 266,66724%
    266,668 – 308,33330%
    Above 308,33336%

    Full Country Guide

    How We Help You with Payroll & Compliance in Ghana

    Want the complete PDF guide for

    Sri Lanka

    ? We share detailed country guides covering payroll, tax, and compliance — and we send new updates regularly. Just send an email to solutions@praxima.com, and we’ll send it straight to your inbox.

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    Global Payroll Solutions for Every Market

    Expanding beyond

    Sri Lanka

    ? Discover how we support compliance and payroll operations in 70+ countries.

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    Why Global Companies Trust Us for Sri Lanka Payroll

    Trusted Payroll Solutions Backed by Decades of Experience

    With over 30 years of experience managing payroll and compliance across continents, we’re a trusted partner to enterprises in

    Sri Lanka

    and beyond.

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    Support

    Experts with deep local knowledge guide you through every step—onboarding, payroll, compliance—ensuring smooth operations in

    Sri Lanka
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    Trust

    Global enterprises and Fortune 500s rely on us for consistent, compliant payroll delivery across complex, multi-country environments

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    Scalable

    Our solutions adapt as you grow, whether you're hiring your first local employee or scaling an international team

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    Compliance

    Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

    Sri Lanka

    's laws

    See Why Leading Companies Choose Us

    Let’s Talk Sri Lanka

    Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

    Sri Lanka
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