Sri Lanka (LK)
Sri Lanka is South Asia's most beloved island destination — a tropical tear-drop off India's southern tip offering ancient Buddhist temples, colonial hill stations, spice gardens, surf beaches, and world-renowned tea.
Social Security in Sri Lanka
Benefits, contributions, and how the system works for expats.
Sri Lanka's social security system is centred on the Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF) — two mandatory workplace savings schemes that provide retirement and separation benefits. These are not insurance schemes like Germany's GRV but forced savings vehicles. There is no universal state pension for all citizens, no unemployment insurance, and limited social assistance programmes compared to OECD countries. Foreign nationals working in Sri Lanka are fully enrolled in EPF and ETF and are entitled to full withdrawal when leaving the country permanently.
EPF Member Number
EPF Member Account Number
Your employer registers you with the Employees' Provident Fund (EPF) Department of the Central Bank of Sri Lanka within 14 days of your first day of employment. You receive an EPF Member Account Number — this appears on your payslip alongside your monthly EPF contributions. For ETF: your employer registers you simultaneously with the Employees' Trust Fund Board (etfb.lk). Keep a record of your EPF number — you will need it for balance checks and withdrawal on departure.
- Payslip deductions (EPF employee 8% each month)
- Retirement withdrawal (at EPF retirement age or permanent departure)
- EPF balance checking via CBSL EPF portal
- EPF nomination for beneficiaries (in case of death of member)
- Housing loan applications (EPF can be used as collateral for housing loans)
Benefits & Support Payments
Employees' Provident Fund (EPF)
EPF — Karmika Nidhanaya
Mandatory forced-savings retirement fund. Employee contributes 8% of monthly gross salary; employer contributes 12%. Total 20% of gross salary saved monthly. Interest declared annually by the CBSL EPF Board (approximately 9–11% per annum in 2025–2026). Accessible on: retirement at age 55, permanent departure from Sri Lanka, death (nominee receives funds), or total permanent disability.
Mandatory for all employees in the formal sector in Sri Lanka, including foreign nationals working on valid work visas. Self-employed individuals cannot contribute voluntarily to EPF. EPF applies to employers with 3 or more employees.
Automatic enrollment by employer on first day of employment. Monitor your EPF balance through the CBSL EPF member portal (epf.cbsl.gov.lk). To withdraw on departure: apply through your employer's HR department who submits on your behalf, or directly to EPF Division, CBSL, 30 Janadhipathi Mawatha, Colombo 1.
Employees' Trust Fund (ETF)
ETF — Karmika Nidhana Maruthuvaya
Employer-funded welfare scheme. Employer contributes 3% of monthly gross salary to the ETF. Employee does NOT contribute. ETF provides: retirement gratuity supplement, death benefits, and loans for education and housing. Accessible on: retirement, death, permanent departure from Sri Lanka, and partial withdrawal for specific purposes.
Mandatory for all formal sector employees in Sri Lanka. Employer contribution only — no deduction from employee salary. Applies from first day of employment.
Automatic enrollment by employer. To withdraw: apply through the Employees' Trust Fund Board (etfb.lk), ETF House, No. 50, Hulftsdorp Street, Colombo 12. Phone: 011 232 3224. Foreign nationals can claim full ETF withdrawal on permanent departure with passport and employment termination confirmation.
Employees' Termination Gratuity
Gratuity
Statutory gratuity payment owed to employees who have completed 5 years of continuous service with the same employer. Governed by the Payment of Gratuity Act No. 12 of 1983.
Minimum 5 continuous years of service with the same employer. Applies to employees dismissed, made redundant, or who resign after 5 years. Foreign nationals are fully entitled.
Claim from your employer directly — it is their statutory obligation. If not paid on termination, file a complaint with the Commissioner General of Labour or the Labour Tribunal.
Maternity Benefit
Maternity Benefit (Maternity Benefits Ordinance)
Full salary continuation during statutory maternity leave (84 days for first and second confinements) plus job protection. The employer bears the full cost — there is no state maternity insurance fund.
All female employees in the formal sector, including foreign nationals on work visas.
Notify employer in writing with medical certificate of expected confinement date.
Workmen's Compensation
Workmen's Compensation Ordinance
Compensation payable by the employer for work-related injuries or death. Employers must maintain workers' compensation insurance or have sufficient financial capacity to pay. Covers: medical costs, temporary disability benefit (50% of wages), and lump sum for permanent disability or death.
All employees covered by the Workmen's Compensation Ordinance, including foreign nationals.
Report workplace injury to employer immediately. Employer must report to the Commissioner of Workmen's Compensation. Dispute resolution through the Commissioner's office.
Contribution Overview
Social security contributions on a Sri Lankan payslip: EPF Employee: 8% of gross salary (deducted from employee). EPF Employer: 12% of gross salary (paid by employer, not deducted from employee). ETF Employer: 3% of gross salary (paid by employer, not deducted from employee). PAYE Income Tax: progressive, 0% on first LKR 100,000/month. Example for LKR 200,000/month gross salary: EPF employee deduction = LKR 16,000; PAYE tax ~LKR 34,000; Net pay ~LKR 150,000. Employer additionally pays EPF 12% (LKR 24,000) and ETF 3% (LKR 6,000) on top of gross salary.
International Social Security Agreements
Sri Lanka has limited bilateral social security totalization agreements. As of 2026, Sri Lanka has social security agreements with: the Republic of Korea (South Korea) and a few Middle Eastern labour-sending countries. There is NO comprehensive social security agreement with the UK, EU countries, USA, Canada, or Australia. Foreign nationals from these countries who contribute to EPF and ETF in Sri Lanka cannot count their Sri Lankan contribution years toward home country pension entitlements (and vice versa). Full EPF + ETF withdrawal on departure is the practical path for most foreign nationals.
The absence of unemployment insurance in Sri Lanka means there is no safety net for job loss beyond EPF/ETF savings. Foreign nationals are strongly advised to maintain personal emergency savings equivalent to 3–6 months of expenses. The 2022 economic crisis (Sri Lanka's worst since independence) caused significant disruption to banking and employment — maintaining some savings in USD or international accounts in addition to LKR accounts is prudent for long-term expats.
Social Security
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