What Are EPF and ETF?
In Sri Lanka, EPF (Employees’ Provident Fund) and ETF (Employees’ Trust Fund) are the two main statutory funds for private and semi-government sector employees. Both are paid for each month you work.
Every employer covered by the EPF Act must register and pay both funds each month.
What Is EPF?
The Employees’ Provident Fund (EPF) was set up under the Employees’ Provident Fund Act No. 15 of 1958.
- Main purpose: To give you a lump sum when you retire or can no longer work, or to your legal heirs if you die.
- Who runs it: The Department of Labour handles registration, compliance and enforcement. The Central Bank of Sri Lanka’s EPF Department manages the fund, member accounts and interest.
- Who pays: You and your employer.
- Interest: Interest is added to your EPF account each year at the rate declared for that year. See EPF and ETF interest rates below. The monthly figures above are contributions only; the balance at retirement estimate adds interest.
What Is ETF?
The Employees’ Trust Fund (ETF) was set up under the Employees’ Trust Fund Act No. 46 of 1980.
- Main purpose: To pay you a lump sum when you leave employment, and to offer welfare benefits while you work.
- Who runs it: The Employees’ Trust Fund Board (ETFB), under the Ministry of Labour.
- Who pays: Your employer only.
EPF vs ETF: Key Differences
| Feature | Employees’ Provident Fund (EPF) | Employees’ Trust Fund (ETF) |
|---|---|---|
| Governing Act | EPF Act No. 15 of 1958 | ETF Act No. 46 of 1980 |
| Employee contribution | Minimum 8% (deducted from salary) | 0% |
| Employer contribution | Minimum 12% | 3% |
| Total rate | 20% of monthly earnings | 3% of monthly earnings |
| Managed by | Central Bank of Sri Lanka & Department of Labour | Employees’ Trust Fund Board (ETFB) |
| Main purpose | Retirement lump sum | Lump sum on leaving work, plus welfare while working |
| Welfare benefits while working | Housing loan security guarantee | Heart surgery, disability, health, scholarships |
| When you can withdraw | Men at 55 / women at 50 on leaving work; permanent migration; marriage for women | On leaving a job (once every 5 years); retirement; permanent disability |
Ready to claim? The EPF & ETF withdrawal guide covers the forms, documents and offices for each type of claim, the 30% early withdrawal and gratuity.
EPF and ETF interest rates
Both funds add interest to your balance once a year, at a rate declared for that year. The rate changes from year to year with what the fund earns on its investments.
| Year | EPF interest on member balances | ETF (dividend + interest) |
|---|---|---|
| 2025 | 10.75% | 9.5% |
| 2024 | 11.00% | not published on etfb.lk |
| 2023 | 13.00% | not published on etfb.lk |
| 2022 | 9.00% | not published on etfb.lk |
| 2021 | 9.00% | not published on etfb.lk |
Source: EPF Department, Central Bank of Sri Lanka, Fund Management (five-year summary, "Interest Rate on Member Balances"); Employees' Trust Fund Board, About ETF Board ("the Board declared 9.5% for year 2025"). Checked 29 Sep 2026. The 2026 rates will be declared in 2027.
Who Pays EPF and ETF?
The Employees’ Provident Fund Act and the ETF Act set these minimum rates. You contribute a minimum of 8% to EPF, deducted straight from your salary. Your employer contributes separately (a minimum of 12% to EPF and 3% to ETF) for a combined employer payment of 15%. Employers and employees may agree to higher contribution percentages under Section 11 of the EPF Act.
What Is Deducted from Your Salary
Only your 8% Employee EPF is deducted from your monthly gross remuneration.
No other statutory retirement or trust fund contribution can be deducted from your pay.
What Is Paid by Your Employer
- Your employer pays 12% EPF and 3% ETF from company funds. This 15% is paid on top of your gross salary, not taken out of it.
Common Misunderstandings
Myth: “My employer pays only 12%.” Fact: Your employer pays 12% into EPF and another 3% into ETF. That is 15% in total.
Myth: “EPF and ETF are worked out on basic salary only.” Fact: Fixed allowances such as COLA and food allowances are part of total monthly earnings. They must be included. See what counts as total monthly earnings.
Myth: “Probationary and temporary staff don’t get EPF or ETF.” Fact: Permanent, temporary, probationary, contract and casual employees are all covered from their first day.
What Counts as Total Monthly Earnings?
EPF and ETF calculations are not based solely on basic salary. Sri Lankan labour law requires contributions to be calculated on total monthly earnings (gross remuneration).
Included in Total Monthly Earnings
The EPF Department lists these items as part of total monthly earnings:
- Basic salary or wages: Fixed base salary or contracted monthly pay.
- Cost of Living Allowance (COLA): Mandatory and voluntary cost-of-living adjustments.
- Special living or interim allowances: Budgetary relief allowances and special allowances.
- Food allowances: Cash allowances for food and meals, or the assessed cash value of cooked/uncooked food supplied by the employer.
- Commissions & piece-rate payments: Sales commissions, production incentives, or piece-rate wages.
- Holiday pay: Wages or compensation paid in respect of public, mercantile, or annual holidays.
Excluded from Total Monthly Earnings
- Overtime (OT) pay: Payments made for hours worked outside standard working hours.
- Traveling & fuel reimbursements: Bona fide expense reimbursements for official business travel.
- Discretionary ex-gratia bonuses: Occasional, non-contractual performance or annual bonuses not linked to regular earnings.
How to Calculate EPF and ETF in Sri Lanka
To calculate EPF and ETF, first add up your total monthly earnings. That is your basic salary plus fixed allowances such as COLA, but not overtime. Multiply the total by 8% for your EPF deduction. Multiply it by 12% for your employer’s EPF and by 3% for ETF. Your employer pays both the 12% and the 3%.
- Add up your total monthly earnings. Include basic salary, COLA and other fixed allowances. Leave out overtime. See what counts as total monthly earnings.
- Employee EPF (8%): total earnings × 0.08. This comes off your pay.
- Employer EPF (12%): total earnings × 0.12. Your employer pays this on top of your salary.
- ETF (3%): total earnings × 0.03. Your employer pays all of it.
Add steps 2 and 3 to get total EPF (20%). Add all three to get the combined 23%. The calculator at the top of this page does these steps for you.
Worked example
Take an employee with these monthly pay items:
- Basic salary: Rs. 70,000
- Cost of Living Allowance (COLA): Rs. 20,000
- Food allowance: Rs. 10,000
- Overtime (OT): Rs. 15,000 (not counted)
Worked Calculation Breakdown
- Total Qualifying Earnings: Rs. 70,000 + Rs. 20,000 + Rs. 10,000 = Rs. 100,000 (overtime is excluded).
- Employee EPF Deduction (8%): Rs. 100,000 × 0.08 = Rs. 8,000 deducted from monthly pay. Estimated Earnings After Employee EPF Deduction: Rs. 92,000 (this figure only subtracts the employee EPF contribution; it doesn’t account for personal taxes (APIT) or other payroll deductions).
- Employer Remittances (15% Total):
- Employer EPF (12%): Rs. 100,000 × 0.12 = Rs. 12,000
- Employer ETF (3%): Rs. 100,000 × 0.03 = Rs. 3,000
- Total employer contribution paid out of company funds = Rs. 15,000.
- Total Combined Monthly Fund Inflow (23%): Rs. 20,000 total EPF (8% employee + 12% employer) + Rs. 3,000 ETF = Rs. 23,000 deposited across the statutory funds.
Employer Requirements & Official Information
Each month, employers pay both funds and send a return listing each employee’s earnings and contributions. The EPF return is the C-form (on paper, or as an electronic e-Return). The ETF remittance form is the R4 form for employers with fewer than 15 employees and the R1 form for employers with 15 or more, who must now pay and file electronically.
Monthly Remittance Deadlines
Both EPF and ETF payments for a month must reach the funds on or before the last working day of the following month. Late payments attract surcharges under the EPF and ETF Acts.
Mandatory ETF Electronic Remittance (Effective July 2026)
The Employees’ Trust Fund Board (ETFB) requires employers with 15 or more employees to remit monthly ETF contributions and submit member returns electronically (via approved commercial banking e-return portals or direct debit) starting from July 2026 contributions onward. Physical cheques and paper returns are discontinued for these employers.
Official Authorities & Primary Sources
- EPF Department (Central Bank of Sri Lanka): Official portal for member account statements, employer registrations, and contribution guidelines. epf.lk
- Employees’ Trust Fund Board (ETFB): Official portal for member claims, scholarship applications, and employer e-banking remittances. etfb.lk
- Department of Labour: Statutory enforcement authority for employee rights and labour standard compliance. labourdept.gov.lk
How do I check my EPF or ETF balance?
The Central Bank’s EPF Department keeps your EPF account, so check your EPF balance through epf.lk. The Employees’ Trust Fund Board keeps your ETF account, so check your ETF balance through etfb.lk. This calculator estimates monthly contributions. It can’t show what is in your account.
- EPF online or by SMS: Register with the EPF Department first. The member registration and SMS registration forms are on epf.lk.
- EPF in person: Visit the EPF Department of the Central Bank in Colombo 01, or a Central Bank regional office, with your NIC and your B card. A printed statement is free of charge.
- EPF by email: Send a request with scanned copies of your NIC and B card to epfhelpdesk@cbsl.lk.
- ETF online: Log in at eservices.etfb.lk. Your employer can create your log-in account, or you can apply to the ETF Board with its member application form.
- ETF by SMS: Once you have a log-in account, send ETFBLC followed by your log-in user name to 1919.
The Department of Labour’s Digital EPF page links to the same Central Bank member log-in for your balance, and has a check for the status of an EPF claim.
To take the money out, see how to withdraw EPF and ETF.