Cost to Company Calculator Sri Lanka

Enter a basic salary and allowances to estimate employer EPF and ETF costs and compare them with employee pay. Other benefits and expenses are outside this estimate.

Offer Details

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Enter a basic salary to compare pay after EPF with statutory employer EPF and ETF costs. APIT and other benefits are separate.

Why gross salary is not what an employee costs

The figure on an offer letter is gross salary. The employer additionally pays 12% EPF and 3% ETF on the contribution base, so the real cost is meaningfully higher than the number both sides discussed.

The employee separately has 8% EPF deducted from their gross pay, so take-home is lower than the offer letter too. Between the two, a salary negotiation conducted purely in gross terms misleads both parties in opposite directions.

Rs. 100,000 basic with no allowances
LineRateAmount
Gross salary-Rs. 100,000
Employee EPF (deducted)8%Rs. 8,000
Take-home before tax-Rs. 92,000
Employer EPF (added)12%Rs. 12,000
Employer ETF (added)3%Rs. 3,000
Total cost to company-Rs. 115,000

Which allowances count toward the contribution base

The three contribution rates apply to the EPF-eligible base, not to total gross. That base is basic salary plus whichever allowances form part of earnings for EPF purposes, which is why the calculator separates EPF-eligible allowances from those that are not.

Getting the split wrong changes the answer substantially. Moving Rs. 20,000 of pay from an EPF-eligible allowance to a non-eligible one reduces employer cost by Rs. 3,000 a month and reduces the employee's retirement savings by Rs. 4,000 a month.

  • Confirm the eligibility of each allowance with your employer or the Department of Labour rather than assuming.
  • Structuring pay to avoid EPF eligibility is a common practice with real consequences for the employee.
  • Total cost also excludes gratuity accrual, which becomes payable after five years of service.

What this calculator leaves out

Total cost to company in the broader sense includes several things this calculator does not model, because they vary too much between employers to estimate meaningfully.

  • APIT withheld from the employee, which is deducted from pay rather than added to cost.
  • Gratuity accrual at half a month per year of service, payable after five years.
  • Medical insurance, transport, meals, equipment, and workspace.
  • Bonuses and any employer contribution above the statutory minimum.

Reading a CTC offer as a candidate

An offer quoted as cost to company is not the money you will receive, and the gap is wider than most candidates expect. Employer EPF at 12% and ETF at 3% form part of CTC but never arrive as salary: the EPF share goes to your retirement balance and the ETF share to a separate fund administered by the ETF Board.

From the gross figure, employee EPF at 8% is deducted, and APIT is deducted where your income reaches the threshold. So a Rs. 115,000 cost to company built on a Rs. 100,000 contribution base produces a gross of Rs. 100,000 and a take-home nearer Rs. 92,000 before any tax, roughly a fifth below the headline.

When comparing two offers, convert both to take-home rather than trusting the quoted figures, and ask which components are EPF-eligible. An offer loading a large share into allowances outside the contribution base can show a higher gross while building a smaller retirement balance.

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Frequently asked questions

It depends on the nature of the payment and applicable employment rules. Confirm each allowance with payroll or the Department of Labour before placing it in the eligible or non-eligible input.

Gross salary is pay before employee deductions. This tool adds employer EPF at 12% and ETF at 3% of the EPF-eligible contribution base to estimate statutory payroll cost.

Gross salary plus everything the employer pays on top of it. At statutory minimum that means employer EPF at 12% and ETF at 3% of the contribution base, so an employee on a Rs. 100,000 EPF-eligible salary costs the employer Rs. 115,000 before gratuity provision, insurance, bonuses, or overheads.

Gross salary plus employer EPF at 12% and ETF at 3% of the eligible contribution base. Gratuity, insurance, bonuses and other employer costs may add more. The percentage uplift on gross depends on which allowances are eligible.

Employee EPF is 8% of the contribution base and comes out of the employee's pay. Employer EPF is 12% and employer ETF is 3%, both paid by the employer on top of pay. So 20% goes to EPF in total and 3% to ETF, of which the employee funds 8%.

No. ETF is funded entirely by the employer at 3% of the contribution base. Only the 8% EPF share is deducted from the employee. A payslip showing an ETF deduction is worth querying with your employer.

Some do and some do not, and it turns on the nature of the payment rather than what it is called. Whether a given allowance forms part of the contribution base is a question of fact about your pay structure, so check with your employer or the Department of Labour rather than assuming.

Employee EPF at 8% reduces pay, and APIT may also be deducted. This worksheet shows pay after EPF but does not calculate APIT, so use the income tax calculator for a fuller take-home estimate.