Country fileLKLKRVerified 2026-09-21
LK
Employer of Record in Sri Lanka: what one employee really costs
Sri Lanka, Asia. One software engineer at $15,000 gross per year, priced through 12 providers with a published fee, on the European Commission's September 2026 exchange rate. Change the salary and headcount below.
- Employer on-cost
- +15.0%
- statutory charges on top of gross
- All-in per month
- $1,637 – $2,137
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in Sri Lanka at $15,000 gross a year costs about $188 a month in statutory employer charges (+15.0%), plus an EOR fee of $199 to $699 per month depending on the provider: $1,637 to $2,137 all-in, before deposits, FX margins and add-ons. Prices checked 2–24 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Sri Lanka
Price your own hire, line by line.
employee inatgross / year
≈ LKR 4,932,266 gross / year · LKR at the European Commission monthly rate for September 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $1,250 | |
| Employees' Provident Fund (EPF), employer share | 12% | $150 |
| Employees' Trust Fund (ETF), employer only | 3% | $38 |
| Employer on-cost | +15.0% | $188 |
| Cost of employment, before EOR fee | $1,438 |
RemoFirstLowest total
$1,637/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $19,638
- Fee share
- 12.2%
Checked 2 Sept 2026
Get a RemoFirst quotePapaya Global
$1,937/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $23,238
- Fee share
- 25.8%
Checked 2 Sept 2026
Get a Papaya quoteDeel
$2,037/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $24,438
- Fee share
- 29.4%
Checked 2 Sept 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $1,637 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $1,637/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $1,757 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $1,757/mo |
| Pebl Velocity Global, renamed Pebl in 2026. Prints $399 per employee per month. | from $399 | $1,837 | Not stated on the pricing page | 185+ | 22 Sept 2026 | Get a quote from Pebl· $1,837/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $1,837 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $1,837/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499 $459 billed annually | $1,937 | Refundable security deposit required per employee by the EOR terms (effective 1 June 2026), sized by Multiplier; not on the pricing page. | 150+ | 24 Sept 2026 | Get a quote from Multiplier· $1,937/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $1,937 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $1,937/mo |
| Borderless AI EOR at $579 per employee per month, no deposit or pre-funding, 170+ countries. | $579 | $2,017 | No deposit: 'No upfront deposits or pre-funding required' (pricing page). | 170+ | 24 Sept 2026 | Get a quote from Borderless AI· $2,017/mo |
| Atlas HXM EOR from $599 through its own entities, plus an Agent of Record at $199. | from $599 | $2,037 | Not stated on the pricing page | 160+ | 21 Sept 2026 | Get a quote from Atlas HXM· $2,037/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $2,037 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $2,037/mo |
| G-P EOR in 180+ countries from $599, with no minimum contract length. | from $599 | $2,037 | Not stated on the pricing page | 180+ | 24 Sept 2026 | Get a quote from G-P· $2,037/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $2,137 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 24 Sept 2026 | Get a quote from Oyster· $2,137/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $2,137 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $2,137/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 24 Sept 2026 | Get a quote from Rippling |
| Safeguard Global EOR sold alongside entity setup and payroll; no price published. | Quote only | — | Not stated | 187+ | 21 Sept 2026 | Get a quote from Safeguard Global |
Same salary and statutory charges in every row; only the fee segment changes.
What Sri Lanka adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Employees' Provident Fund (EPF), employer shareEvery employee of a covered employer; charged on total monthly earnings with no ceiling | 12% | Gross salary Twelve per cent of total monthly earnings, and the Central Bank writes it as a floor — "a minimum amount equivalent to 12%" — paid entirely by the employer on top of the employee's own 8%, for a fund of at least 20% of earnings. There is no ceiling and no grade table, so the rupee amount rises with every rupee of salary: at four times the example salary the employer pays four times as much, which is not true of a country whose contributions stop at a grade. "Total earnings" is defined by the fund and is not the same as gross pay: it includes salary, cost-of-living and similar allowances, holiday pay, food allowances and the cash value of food provided, and it excludes overtime, reimbursed travel and incentive or bonus payments — so a bonus-heavy package carries less EPF than a salary-heavy one of the same value. | Central Bank of Sri Lanka, Employees' Provident Fund2026-09-21 |
| Employees' Trust Fund (ETF), employer onlyEvery private-sector employee; charged on total monthly earnings with no ceiling, and nothing may be deducted from the employee | 3% | Gross salary Three per cent of total monthly earnings, paid by the employer alone under the Employees' Trust Fund Act No. 46 of 1980. The Board is explicit that it may not be recovered from the employee's pay, which makes it a pure employer cost rather than a shared one — the Board itself calls it non-contributory for the member. It uses the same definition of total earnings as the EPF and, like the EPF, has no ceiling. Employers remit it separately from the EPF, to the ETF Board rather than to the Central Bank, so it is two filings a month, not one. | Employees' Trust Fund Board2026-09-21 |
| Statutory gratuity on termination (half a month per year, after five years) not in total | — | Carried at zero because it is contingent on both a headcount test and a service test, not because it is small. The Payment of Gratuity Act No. 12 of 1983 applies to an employer who has employed fifteen or more workmen on any day in the twelve months before a termination, and it is owed to a worker with at least five completed years of service — however the job ends, including resignation, retirement and death. The rate for a monthly-rated worker is half a month's last-drawn salary for each completed year, payable within thirty days. An EOR hire that lasts under five years never triggers it; one that lasts ten years carries five months of salary at the exit. Ask the provider whether it accrues this monthly or bills it at the end. | Payment of Gratuity Act No. 12 of 1983, sections 5(1) and 5(2)(a), as reproduced in the Department of Labour's labour code: fifteen or more workmen, five completed years of service, half a month's wage or salary for each year of completed service for a monthly rated workman2026-09-21 |
| Termination compensation under the Commissioner's formula not in total | — | Carried at zero because it only arises when the employer ends the contract, but it is the number to know before hiring here. Under the Termination of Employment of Workmen (Special Provisions) Act an employer may not end a covered worker's employment without either the worker's prior written consent or the Commissioner's prior written approval, which the Commissioner may grant or refuse at absolute discretion and must answer within three months. The Commissioner's published formula prices the consent: 2.5 months of salary for each year of service in the first five years, then 2.0 months a year to year 14, tapering to 0.5, with a cumulative cap of 48 months and an overall ceiling of LKR 1,250,000 set by that order. The Act does not apply to employers averaging fewer than fifteen workmen, or to a worker with fewer than 180 days of service. | Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971, sections 2(1) and 3(1), with the Commissioner of Labour's Order under section 6D of 15 March 2005 (compensation formula: 2.5 months per year for years 1-5, 2.0 for years 6-14, 1.5, 1.0 then 0.5, cumulative maximum 48 months, no payment above LKR 1,250,000), as reproduced in the Department of Labour's labour code2026-09-21 |
| Statutory annual leave (14 days after a completed year) not in total | — | Paid time inside the salary rather than an extra contribution. Shop and office employees are entitled to fourteen days of holiday with full remuneration for each year of continuous employment, of which at least seven must be consecutive; in the first year the entitlement is earned at one day per completed two months of service. Seven days of casual leave for private business, ill health or other reasonable cause sit on top of that. | Shop and Office Employees (Regulation of Employment and Remuneration) Act, annual holiday and casual leave provisions as published by the Department of Labour: fourteen days with full remuneration, not less than seven consecutive, plus casual leave not exceeding seven days2026-09-21 |
| Employer on-cost at $15,000 | +15.0% | $2,250 a year, $188 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
An entity in Sri Lanka means company registration with the Registrar of Companies, a tax file, and then two separate monthly filings for the first hire: EPF contributions to the Central Bank's EPF department and ETF contributions to the Employees' Trust Fund Board, each with its own return and its own late-payment surcharge. The statutory charges themselves are simple — 12% and 3% of total earnings, no ceilings, no grade tables, no health or unemployment insurance on top. What an entity inherits instead is the exit: at fifteen workmen the Termination of Employment of Workmen Act switches on, and from then on ending a contract needs the worker's written consent or the Commissioner's approval. The holiday pattern is also unusual enough to plan around: up to nine declared public holidays plus a paid holiday on each Full Moon Poya day, with no substitute day when a Poya falls on a weekly holiday.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $2,250 |
| 3 | $7,164 | $20,844 | $6,750 |
| 5 | $11,940 | $34,740 | $11,250 |
| 10 | $23,880 | $69,480 | $22,500 |
| 20 | $47,760 | $138,960 | $45,000 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 14 days
- Public holidays
- 21
- 13th month
- Not mandatory
- Probation
- no statutory maximum
- Notice
- There is no statutory notice period that buys an employer out of a dismissal. Under the Termination of Employment of Workmen (Special Provisions) Act, an employer with fifteen or more workmen on average may not end the employment of a worker with 180 days or more of service without the worker's prior written consent or the Commissioner of Labour's prior written approval; the Commissioner decides at absolute discretion, within three months; section 2 of the 1971 Act calls the decision final, but section 10B, inserted by Act No. 23 of 2022, now lets an employer apply to the Court of Appeal for a writ against an order under section 6 or 6A, on depositing cash security. In practice the exit is negotiated against the Commissioner's compensation formula, which starts at 2.5 months of salary per year of service. Probation has no statutory maximum and is set in the contract.
- Reviewed
- 2026-09-21
Get a quote for Sri Lanka.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $15,000. Ask each provider about deposits, FX margins and mandatory add-ons for Sri Lanka: those are the lines that move.
Get a RemoFirst quote· $1,637/mo Get a Papaya quote· $1,937/mo Get a Deel quote· $2,037/mo
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do employer contributions add to a salary in Sri Lanka?
- At least 15% at any salary level: 12% to the Employees' Provident Fund and 3% to the Employees' Trust Fund, both on total monthly earnings and neither capped. At this page's example of US$15,000 that is at least US$188 a month, or US$2,250 a year, on top of US$1,250 of salary. Both figures are statutory minimums — the EPF rate is published as "a minimum amount equivalent to 12%" — so a contract may raise them but not lower them.
- Do the EPF and ETF have a salary ceiling?
- No. Neither fund has a contribution ceiling or a grade table, so the employer's charge keeps rising in step with pay: 15% of a US$15,000 salary and 15% of a US$60,000 one. What does move the base is the definition of total earnings. It includes salary, cost-of-living and similar allowances, holiday pay, food allowances and the cash value of food provided; it excludes overtime, reimbursed travel and incentive or bonus payments. A package weighted towards bonus therefore carries less EPF and ETF than the same money paid as salary.
- What does it cost to end a contract in Sri Lanka?
- More than the monthly contributions, and it is the reason to read the terms before signing. An employer with fifteen or more workmen cannot dismiss a worker with 180 days of service without that worker's written consent or the Commissioner of Labour's approval. The Commissioner's published formula prices consent at 2.5 months of salary for each of the first five years of service, 2.0 months a year from year six to fourteen, then less, with a cumulative cap of 48 months and an overall ceiling of LKR 1,250,000 in the order that set it. Separately, gratuity of half a month per completed year is owed to anyone leaving with five or more years of service.
- Is there a 13th-month salary or mandatory health insurance in Sri Lanka?
- Neither is a statutory employer charge. There is no legislated thirteenth month; a festival advance or bonus is contractual. There is no employer health insurance contribution and no unemployment insurance either: the two provident funds are the whole of the statutory employer bill. Private medical cover is a benefit providers will quote as an add-on, so read whether the fee you are comparing already includes one.
- What does an employer of record in Sri Lanka charge on top?
- Its own fee, and here the fee is larger than the statutory charges. At US$15,000 the contributions are at least US$188 a month while published EOR fees start around US$599 a month, so the all-in monthly cost is roughly US$1,250 of salary plus at least US$188 of contributions plus the fee. Compare the totals in the table above, which already include both, and ask specifically how the provider handles gratuity accrual and the Commissioner's compensation formula at exit.