Gratuity Calculator (Sri Lanka)
Updated November 2026 · Free · No sign-up
Calculate gratuity in Sri Lanka — the Payment of Gratuity Act: half a month’s wage per completed year after 5 years of service, at employers with 15+ workers.
Quick answer: Sri Lankan gratuity = (last monthly wage ÷ 2) × completed years — qualifying at 5 years of service, employers with 15+ employees, payable within 30 days of cessation (any cause, including resignation).
The Act’s Rules
| Formula | Half the last monthly wage × completed years (daily-paid: 14 days’ wages/year) |
| Qualifying service | 5+ completed years |
| Employer size | 15+ workers (smaller shops exempt from the Act) |
| Trigger | Any cessation — resignation, termination, retirement, death (heirs) |
| Deadline | 30 days — surcharges accrue on lateness (10-30% scale) |
| Forfeiture | Only for dismissal over rioting/violence/property damage, to the damage’s extent |
Worked Example
Rs 120,000 final wage, 9 years: 60,000 × 9 = Rs 540,000, due within 30 days of the last day — alongside EPF/ETF balances (independent entitlements).
Tax
Concessional terminal-benefit rates apply (first Rs 5M at 0%... scale per current APIT rules — verify); the employer deducts per the Commissioner’s direction.
Claiming
The Labour Commissioner enforces — late payment surcharges are automatic (10% first month, rising), and the Act’s criminal teeth make recovery letters effective. Wage base: last month’s wage including COLA per practice — base disputes go the worker’s way more often than not at the department.
Frequently Asked Questions
How is gratuity calculated in Sri Lanka?
Half the last monthly wage per completed year after 5 years’ service — Rs 120,000 wage × 9 years = Rs 540,000 — at employers with 15+ workers.
Do I get gratuity if I resign in Sri Lanka?
Yes — any cessation after 5 qualifying years pays, including resignation; only violence/damage dismissals forfeit (to the damage extent).
When must gratuity be paid?
Within 30 days of cessation — statutory surcharges (10-30% scale) accrue automatically on late payment.
Which employers are covered?
Those with 15 or more workers — the Act exempts smaller establishments (contracts may still provide).
Is Sri Lankan gratuity taxed?
Concessional terminal-benefit rates with a large zero band (per current APIT schedules) — far gentler than salary rates; verify the current table.
✓ Formula verified • Last updated: November 3, 2026