Sri Lanka APIT (PAYE) Salary Tax Calculator

About the Sri Lanka APIT (PAYE) Salary Tax Calculator

Work out the Advance Personal Income Tax (APIT), Sri Lanka's PAYE tax, that your employer deducts from your pay, the way the Inland Revenue Department's APIT tax tables set it. Enter your monthly salary, cash allowances and the value of any non-cash benefits, and see the APIT for the month by Table 01 to the rupee, the tax for the year at the annual rates, the EPF taken from your pay and your take-home pay.

The calculator also does the other tables an employer uses: the tax on a bonus, incentive, leave encashment or salary arrears (Table 02), the tax on the year's pay to date for someone who joined or left during the year (Table 05), and what is retained from a gratuity, a commuted pension or an ETF payment when employment ends (Table 03), with the final tax at the concessionary rates. Every step of the working is shown with the table it comes from. Nothing you type leaves your browser.

Without a pass the page shows a free preview of your own result: the APIT to deduct, with the first rows of each table, while every other figure stays hidden until you unlock it with a Pro pass.

How APIT on a salary is worked out (Table 01)

Table 01 applies to resident employees and to non-resident employees who are citizens of Sri Lanka, in their primary employment. It already allows the personal relief of Rs 150,000 a month, so it is applied to the whole of your monthly regular profits from employment, without taking anything off first:

• up to Rs 150,000: no tax;
• Rs 150,001 to Rs 233,333: 6% of the income less Rs 9,000;
• Rs 233,334 to Rs 275,000: 18% less Rs 37,000;
• Rs 275,001 to Rs 316,667: 24% less Rs 53,500;
• Rs 316,668 to Rs 358,333: 30% less Rs 72,500;
• above Rs 358,333: 36% less Rs 94,000.

The IRD's detailed Table 01 prints the deduction in whole rupees for every income up to Rs 366,100, and above that Rs 37,796 plus 36% of the excess. The calculator gives the same figure as every row of that table. Twelve months of Table 01 come to the year's tax at the annual rates, give or take the table's rounding to whole rupees: a relief of Rs 1,800,000, then 6% on the first Rs 1,000,000, 18%, 24% and 30% on the next Rs 500,000 each and 36% on the balance.

What counts as regular profits from employment

Wages, salary, commission, overtime, travelling and other allowances, fees and pensions arising in the pay period; payments for your housing, conveyance, electricity, telephone and entertainment and the market value of other non-cash benefits; payments for medical bills and insurance (except medical and health insurance benefits all full-time employees get on equal terms); and payments made to someone else for your benefit. The only exemptions are those in the Third Schedule of the Inland Revenue Act (Table 01).

Bonuses and other lump sums (Table 02)

A bonus, incentive, leave encashment, medical reimbursement or salary arrears is taxed when it is paid, on the year's estimated gross aggregate remuneration (D): the monthly pay already paid and still to be paid in the year, plus every lump sum of the year. The tax on the lump sum paid now is D times the rate of its band, less the band's fixed amount, the Table 01 APIT on the year's monthly pay and the APIT already deducted from earlier lump sums (Table 02):

• D up to Rs 1,800,000: nil;
• Rs 1,800,001 to Rs 2,800,000: 6%, less Rs 108,000;
• Rs 2,800,001 to Rs 3,300,000: 18%, less Rs 444,000;
• Rs 3,300,001 to Rs 3,800,000: 24%, less Rs 642,000;
• Rs 3,800,001 to Rs 4,300,000: 30%, less Rs 870,000;
• above Rs 4,300,000: 36%, less Rs 1,128,000.

Joining or leaving during the year (Table 05)

When you start or leave a job during the year of assessment, or your monthly pay is below Rs 150,000 but the year's pay to date goes above Rs 1,800,000, the employer uses Table 05: the same bands as Table 02 applied to the year's cumulative pay, less the APIT already deducted. A second employer in the same year works from the first employer's tax deduction certificate (T-10).

Gratuity, commuted pension and ETF payments (Table 03)

On a retiring gratuity, a commuted pension, compensation for loss of office under a scheme the Commissioner-General approved and a payment from the Employees' Trust Fund, the employer and the ETF each retain 12% of the part of their payments above Rs 5,000,000. Other payments on retirement (unapproved compensation, payments from unapproved provident funds, other payments and non-cash retirement benefits) are retained at 36%, unless the year's taxable pay up to leaving and those payments add up to no more than Rs 1,800,000. The retiring employee obtains a direction from the IRD within 90 days of the retention and the payer follows it; without one by then, the payer remits the amount retained to the IRD (Table 03). The final tax on the qualifying benefits is 0% on the first Rs 10,000,000, 6% on the next Rs 10,000,000 and 12% on the balance (tax chart).

EPF, ETF and take-home pay

Your employer deducts EPF of at least 8% of your total earnings from your pay and adds 12% of its own and 3% for the ETF. APIT is worked out on your regular profits before EPF: EPF does not lower it. The Sri Lanka EPF & ETF Contribution Calculator shows all three contributions and a projection of your balances, and the Sri Lanka Gratuity Calculator the gratuity due when you leave.

Limitations

• Covers Tables 01, 02, 03 and 05. Secondary employment (Table 07), non-resident non-citizens (Table 04), tax paid by the employer on your behalf (Table 06) and pay from a foreign employer (Table 08) are not covered.
• Table 02 assumes your monthly pay stays the same for the rest of the year; your employer works it out again with your actual pay at every lump sum.
• Only employment income is included. Rent, interest, dividends and business income, rent relief and solar relief are dealt with in your income tax return.
• Enter only taxable amounts: leave out the exempt amounts of the Inland Revenue Act’s Third Schedule.
• An estimate from the IRD’s published tables, not tax advice: your employer’s payroll and the IRD’s assessment decide what you pay.

Privacy

On this device: nothing is sent

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.