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Sri Lankan Rupees (LKR).
The employer cost is generally estimated at 15% of the employee salary.
Sinhala and Tamil.
23.1 million.
Monthly.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Sri Lanka offers several benefits and challenges. On the positive side, Sri Lanka has a well-educated, English-speaking workforce, particularly strong in IT, finance, and customer service sectors, making it attractive for companies seeking skilled labour at relatively competitive wages. The country’s strategic location in South Asia also provides access to regional markets and time zone advantages for global operations. However, challenges include navigating complex labour laws, which can be rigid regarding employment contracts and termination procedures. Additionally, the political and economic instability, including frequent currency fluctuations, can pose risks to long-term business planning.
Employers should consider hiring remotely in Sri Lanka due to the country’s robust digital infrastructure and a growing pool of skilled professionals in fields like IT, software development, and customer support. The cost of living in Sri Lanka is lower compared to many Western countries, allowing businesses to access high-quality talent at a fraction of the cost. Additionally, the widespread use of English as a working language facilitates smooth communication and collaboration in international teams. Remote hiring in Sri Lanka enables companies to tap into a motivated and capable workforce while benefiting from cost efficiencies and maintaining operational flexibility.
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| EPF Employer contribution: | 12% |
| Employees Trust Fund: | 3% |
Healthcare.
Social Security Contributions.
Life Insurance.
Ranging between 3 and 6 months dependent on the employee’s role.
Emerald Technology can onboard employees in Sri Lanka within 48 hours.
The public healthcare system in Sri Lanka is government funded and it offers free or low-cost medical services to citizens covering many healthcare services such as emergency services and preventive care. However, private health insurance is becoming more popular due to the easier access to medical care, and the higher-quality facilities.
Social security contributions in Sri Lanka are managed by the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) to provide financial security for employees through benefits. EPF is mandatory and it provides savings for employees to aid finances upon retirement and employees contribute 8% of their monthly salary while employers contribute 12% of the employee’s monthly salary, but if the employee earns less than LKR 10,000, the employer only contributes 3%. The ETF provides additional retirement benefits and social security protection. Employers contribute 3% of the employee’s monthly salary and there is no mandatory contribution for employees.
Employees are entitled to 84 days of maternity leave, 14 days of which should be taken before the birth. This period should be paid in full by the employer.
There is no law suggesting that employers must grant paternity leave, although employers will probably offer around 7 days.
There is no law in Sri Lanka mandating parental leave.
Sick leave entitlement is not specified by law. However, employees may use their 7 business days of casual leave when ill. Any additional leave may be granted and paid by the employer if mutually agreed upon by both parties.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Not outlined by law and will often be specified in the employment contract. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | Employees who worked for between 1 to 5 years served – 2.5 months per year, |
14 days per year beginning on the following calendar year from the employment.
January 1: New Year’s Day,
January 14: Tamil Thai Pongal Day,
February 4: Independence Day,
February (Variable): Navam Full Moon Poya Day,
March (Variable): Maha Shivaratri,
April 13-14: Sinhala and Tamil New Year,
May 1: Labour Day,
May (Variable): Vesak Full Moon Poya Day,
June (Variable): Poson Full Moon Poya Day,
July (Variable): Esala Full Moon Poya Day,
August (Variable): Nikini Full Moon Poya Day,
October (Variable): Vap Full Moon Poya Day,
November (Variable): Deepavali,
December 25: Christmas Day,
17,500 LKR per month.
40 hours per week (five days – eight hours), Employees can work a maximum of 12 hours of overtime per week and get paid 150% of the hourly rate.
Monthly.
Not required by law.
Up to 3,000,000 LKR: 6%,
3,000,001 – 6,000,000 LKR: 12%,
6,000,001 – 9,000,000 LKR: 18%,
9,000,001 – 12,000,000 LKR: 24%,
Over 12,000,000 LKR: 30%,
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