"Revision of Salaries of the Public Service as per Budget Proposals 2025" — applies to the entire public service.

• New salary scales: Every public-service post was given a revised salary scale (Schedule II / III). The calculator contains the full reference database (44 scales, 8,500+ steps).
• Phased payment: The increase is paid in three phases — 30% from 01.04.2025, 65% from 01.01.2026, 100% from 01.01.2027. The percentage applies to the portion of the increase above the immediate-pay floor.
• First Rs 12,500 paid immediately: Rs 7,500 embedded allowance + Rs 5,000 minimum increase are paid in full from April 2025. Only the balance above Rs 12,500 is phased.
• Deferred amounts are not lost: The unpaid portion accumulates and is paid from January 2027. Your payslip will show 'deferred salary' separately.
• University scales (UGC codes): For university staff, phasing applies to basic salary + MCA + additional allowance together. The 2024 basic is not published centrally — enter your pre-revision total emoluments.
• COLA unchanged: The cost of living allowance of Rs 17,800 (PA Circular 03/2024) continues to be paid separately on top of the new basic salary.

Advance Personal Income Tax — withheld monthly by the employer.

Effective from 01.04.2025 (Inland Revenue (Amendment) Act No. 2 of 2025), every taxpayer receives a personal relief of Rs 1,800,000 per year (Rs 150,000 per month). Tax applies progressively to the annual income above the relief, using these slabs on taxable income:

• How it is applied: The employer applies APIT Table 01 to your monthly emoluments: relief of Rs 150,000/month first, then the progressive rates above.
• EPF is NOT deductible: Unlike some countries, Sri Lanka's APIT does not reduce taxable income for EPF/ETF contributions. Tax is charged on gross monthly emoluments minus the relief.
• Bonus & 13th month: Lump-sum payments (bonus, 13th-month salary) are taxed at a flat 12% in the month they are paid — not at your marginal rate.
• Terminal benefits: EPF lump sums at retirement: 0% up to Rs 10,000,000, 6% for Rs 10–20M, 12% above Rs 20M (Y/A 2025/26).
• Annual reconciliation: APIT withheld is credited against your final annual tax liability (final returns for Y/A 2025/26 & 2026/27 use the same relief and slabs).

Employees' Provident Fund Act No. 15 of 1958 · Employees' Trust Fund Act No. 46 of 1980.

• What counts in the base: Basic salary plus regular allowances — including COLA, food and other fixed allowances. Overtime, bonuses and reimbursements are excluded. There is no salary cap.
• Government officers: Pensionable public officers are generally outside EPF/ETF (their savings vehicle is the pension scheme). EPF applies to state corporations, contract and some casual posts — the calculator has a toggle for this.
• Exclusions & exemptions: Certain categories (e.g. minor employees, some ex-gratia workers, members of approved schemes) may be exempt — check EPF circulars with your employer.
• Due date: Employers must remit EPF/ETF within 30 days of the month end (EPF circulars prescribe penalties for delay).

Pension rules depend on your appointment date.

• Contributory scheme (on/after 01.07.2020): The officer contributes 8% of basic salary and the Government contributes 16%. This is a defined-contribution style arrangement under the 2020 pension reforms.
• Non-contributory scheme (before 01.07.2020): No deduction from salary; the pension is budget-funded under the old defined-benefit rules.
• Pension formula: Est. monthly pension = (pensionable basic × months of service) ÷ 480, capped at 90% of the basic — i.e. about 36 years of service gives the maximum.
• Widows' & Orphans' Pension (W&OP) Fund: Some categories of officers contribute to the W&OP fund (a % of basic). It funds pensions for surviving spouses and children. The calculator allows a % if it applies to you.
• Pensionable salary: Pension is calculated on the basic salary (phased basic during the transition) — allowances, COLA and overtime are not pensionable.

Deductions when leave exceeds paid entitlement.

• 30-day method: One day's pay = monthly salary ÷ 30. This is the common method for monthly-paid public officers.
• Working-days method: One day's pay = monthly salary ÷ working days in the month. Use this when leave rules reference working days.
• What it is deducted from: In the public service, no-pay leave is recovered from basic + COLA + allowances (overtime and bonus are paid only for hours actually worked).
• Approval & records: No-pay leave requires prior approval (Establishment Code / relevant circular); deductions appear on the payslip with the month of recovery.

• Public sector: There is no statutory 13th-month payment in the public service; occasional reliefs/bonuses are granted by Cabinet decision (e.g. festive advance/bonus circulars) and are taxed as income.
• Private sector: Wages Boards Orders and collective agreements may provide for bonuses. Where paid, a bonus is taxable — the calculator applies the flat 12% APIT rate for lump sums.
• EPF treatment: Bonuses do not attract EPF/ETF (they are not regular earnings).

• Public service payday: Salaries are paid monthly, normally on the last working day of the month (per Finance & Treasury instructions; early payment is possible for months with holidays).
• Payslip contents: A proper payslip shows basic, allowances, overtime, bonus, APIT, EPF/pension, W&OP, loan/other deductions and net pay — exactly what the calculator's printable payslip produces.
• Private sector obligations: Payment of Wages Act requires prompt payment of wages; the payslip/records obligations follow the Shop & Office Employees and Wages Boards legislation as applicable.

This page summarises the rules as implemented in the calculator. Always confirm against the primary sources for your specific case:

• Primary references: Public Administration Circular 10/2025 (salary revision), PA Circular 03/2024 (COLA), IRD APIT tables & Inland Revenue (Amendment) Act No. 2 of 2025, EPF Act No. 15 of 1958, ETF Act No. 46 of 1980, Establishment Code, and your department's accounts branch.
• Individual circumstances: Appointment date, leave balance, fund membership and special approvals change the numbers — the payroll officer's calculation is authoritative.