Whether you are resigning, retiring or being let go, leaving a job in Sri Lanka comes with money you are entitled to. Knowing what to expect helps you check that your final settlement is correct.
1. Gratuity — for 5+ years of service
Gratuity is a lump sum your employer pays for long service, under the Payment of Gratuity Act No. 12 of 1983.
- It applies to employers with 15 or more employees.
- You qualify after 5 years of continuous service.
- The standard formula is half a month's salary for each completed year of service (technically 15/30 of your last drawn salary per year).
For example, on a last salary of Rs 120,000 after 8 years: ½ × 120,000 × 8 = Rs 480,000. Our Gratuity Calculator works out your figure instantly. Gratuity must be paid within 30 days of leaving.
2. Your EPF and ETF balances
Throughout your employment, 20% of your earnings went into EPF (8% from you, 12% from your employer) and 3% into ETF (employer-only). This is your money.
- On leaving, you can claim your EPF balance when you meet the withdrawal conditions (such as leaving employment and reaching the qualifying age, or other grounds set by the fund).
- Make sure your employer has remitted every month's contribution — check your EPF statement. Our EPF/ETF Calculator shows what should have been going in.
3. Your final settlement
Beyond gratuity, your last payment should include:
- Salary up to your last working day.
- Payment for unused annual leave, where applicable.
- Any pending allowances, commissions or reimbursements.
- Correct APIT treatment on the final amounts.
Before you leave — a checklist
- Get your service letter and a statement of EPF contributions.
- Confirm the gratuity calculation in writing.
- Check that notice period obligations (yours and theirs) are settled.
- Keep copies of your payslips and contract.
Leaving on good terms is easier when the numbers are clear. Run your gratuity and EPF figures before your last day so any discrepancy can be raised while you are still in touch with HR.
General guidance only, not legal advice. For disputes, the Department of Labour can advise.
