Sri Lanka Gratuity Pay Calculator
Compute statutory end-of-service gratuity entitlement under Sri Lankan labor laws. Includes completed service rules (>=5 years), daily vs monthly formula, 10% statutory late penalty, and tax exemptions.
Employment & Salary Parameters
Basic salary + Cost of Living Allowance (COLA) drawn in final month
Act applies to employers with 15+ workers on any day in the past 12 months
Statutory deadline is 30 calendar days. Delays incur 10% annual interest penalty.
Gratuity Assessment
Payable in full within 30 days of employment termination
Legal Framework: Payment of Gratuity Act No. 12 of 1983
Under Sri Lankan labor law, gratuity is a terminal statutory benefit recognizing an employee's long-term loyalty and continuous service.
| Legal Condition | Statutory Requirement | Consequence of Breach |
|---|---|---|
| Minimum Service | 5 completed continuous years | No gratuity payable if under 5 years (unless collective agreement provides) |
| Company Threshold | 15 or more employees | Employers with fewer than 15 workers are exempt from statutory mandate |
| Payment Timeframe | Within 30 calendar days of termination | Mandatory 10% per annum surcharge interest awarded by Labour Tribunal |
| Grounds for Forfeiture | Termination for fraud, theft, or willful damage | Employer may only withhold up to actual financial loss caused |
How is Gratuity Calculated?
- Monthly-Rated Employees:
Last Drawn Monthly Basic + COLA × 0.5 × Completed Years. For instance, an employee drawing LKR 200,000 basic with 10 completed years receives200,000 × 0.5 × 10 = LKR 1,000,000. - Daily-Rated Employees:
Last Drawn Daily Wage × 14 × Completed Years. - Piece-Rated Employees: Average daily wage calculated over the 3 months immediately prior to separation multiplied by 14 days per completed year.
Can Gratuity Be Forfeited?
Under Section 13 of the Act, gratuity cannot be arbitrarily denied even in cases of dismissal or misconduct. The employer may only deduct an amount equivalent to actual, quantifiable damage or loss caused by fraud, theft, or misappropriation after due inquiry, and the remainder must still be paid.
📊 Sri Lankan Statutory Comparative Matrix (IRD, CBSL & Legal Breakdown)
| Statutory Heading / Obligation | Calculated Amount |
|---|---|
| Primary Settlement / Net Amount | LKR 0.00 |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Sri Lankan Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.