---
title: "Sri Lanka Hiring Guide 2026 | EPF, ETF & Contract"
description: "Hire in Sri Lanka 2026: written contract, work-visa check, EPF at 12% employer plus 3% ETF, monthly remittance. Teamed runs all five steps."
canonical: https://www.teamed.global/country-hiring-guides/sri-lanka/hiring-guide
---

Sri Lanka · Hiring guide child

Served by Teamed vetted partner-entity network in Sri Lanka

# How do you *hire a Sri Lanka employee* in 2026?

Three retirement funds attach to every Sri Lanka hire from day one. You add 12% to the Provident Fund and 3% to the Trust Fund, and the worker gives up 8%. Register before the first payslip, or the deadline catches you.

Last reviewed 13 June 2026 · Sri Lanka guide

![The Colombo waterfront at golden hour, with the Lotus Tower and modern office buildings rising behind palm trees along the Indian Ocean.](/images/country-guides/sri-lanka-hiring-guide.webp)

Illustration · Colombo, Sri Lanka

Answer.cite this

The Sri Lanka hire process has five steps. Offer letter, work-visa check, written employment contract, EPF and ETF registration, first payday.

Every employee needs a signed written contract. Three funds attach from day one. The employer adds 12% to the Provident Fund and 3% to the Trust Fund. The employee gives up 8% to the Provident Fund.

Foreign nationals need a residence visa with employment approval before they start. Sri Lankan citizens start on a national ID. There is no mandatory 13th-month salary by law (Inland Revenue and labour statutes).

## What does the end-to-end Sri Lanka hire process look like?

Five steps take you from accepted offer to first payslip. Offer letter, work-visa check, written contract, fund registration, first payday.

Foreign nationals must clear the work-visa check before their start date. Local hires can start sooner.

| Step | What happens | Owner | Timing |
| --- | --- | --- | --- |
| 1. Offer letter | Written offer with role, salary, start date, working hours, and any conditions such as visa status | Client / Teamed drafts | Same day after verbal accept |
| 2. Work-visa check | Confirm Sri Lankan citizenship, or verify a residence visa with employment approval for foreign nationals before the start date | Teamed | Before the employee starts |
| 3. Written employment contract | Signed written terms covering pay, hours, leave, and notice under Sri Lankan labour law | Teamed (legal employer) | On or before day one |
| 4. Fund registration | Register the employee for the Employees' Provident Fund and the Employees' Trust Fund; collect tax and bank details | Teamed | Days 1 to 7 |
| 5. First payday | First payslip issued; EPF and ETF contributions remitted to the funds by the last working day of the following month | Teamed | End of first payroll month |

1. Issue the offer letter Send a written offer the same day as verbal acceptance. State the role, gross salary, start date, working pattern, and any condition such as visa approval for a foreign hire.
2. Complete the work-visa check Confirm Sri Lankan citizenship by collecting a National Identity Card copy, or verify the residence visa with employment approval for foreign nationals before the start date. Keep copies of every document.
3. Issue the written employment contract The signed written contract must be in place on or before day one. Teamed's standard Sri Lanka contract meets the labour statutes. Clients choose the commercial terms; Teamed signs as the legal employer.
4. Register the Provident and Trust Funds Register the employee for the Employees' Provident Fund and the Employees' Trust Fund. Collect tax details and bank details. This runs across the first week.
5. Issue the first payslip and remit contributions Run the first payroll at the end of the first calendar month. Remit the Provident Fund and Trust Fund contributions to the funds by the last working day of the following month. The employee receives their payslip and joins the payroll record.

## What must a Sri Lanka offer letter include?

The offer letter is not the binding contract. It is the document the candidate decides against.

Include role title, reporting line, start date, gross monthly salary, working location, working pattern, and any conditions such as visa status or reference checks.

Three traps to avoid in Sri Lanka offer letters:

- **Leaving the fund contributions unstated.** The Provident Fund and Trust Fund attach to the gross wage from day one. Quote the gross figure clearly so the candidate sees what the contract will carry.
- **Promising a bonus as if it were guaranteed.** There is no statutory 13th-month salary in Sri Lanka. Calling a festival bonus normal or expected can turn it into a contractual term. Mark variable pay as at-discretion.
- **Skipping the visa condition for foreign hires.** A foreign national cannot start without a residence visa carrying employment approval. Make the offer conditional on that approval where it applies.

Teamed's standard Sri Lanka offer letter template covers the required ground. Clients choose the commercial elements. Teamed holds the legal-employer position and issues the final written contract.

## Sri Lanka work-authorisation checks for foreign national employees

Sri Lankan citizens and permanent residents can start work on a national identity card. Foreign nationals need a residence visa with employment approval before their first day.

There is no UK-style right-to-work share code in Sri Lanka. The check is a visa and immigration check, run before the start date.

### Sri Lankan citizens

There is no separate work-authorisation step for Sri Lankan citizens. The employer keeps a copy of the National Identity Card as a standard identity record. That is the full check for a local hire.

### Foreign nationals

A foreign national who will work in Sri Lanka needs a residence visa with employment approval, applied for through the Department of Immigration and Emigration and, where the role requires it, the Board of Investment or the relevant line ministry. The employer normally has to show the role supports the business case for the visa. Processing varies by visa category, so allow several weeks for a fresh application.

Visa categories carry their own documentary requirements and validity periods. The approval is time-limited, so the employer must track the expiry and start the renewal early. Teamed monitors each visa expiry and flags the renewal to the employee and client ahead of the deadline so no lapse occurs.

Department of Labour, Sri Lanka · Labour legislations

Sri Lankan employment runs on several statutes rather than one code. The Shop and Office Employees Act covers hours, leave, and pay for office staff. The Provident Fund and Trust Fund Acts set the retirement contributions. The Department of Labour administers and enforces these together.

Source: [Department of Labour, Sri Lanka: Labour Legislations](https://www.labourdept.gov.lk/index.php?option=com_content&view=article&id=85&Itemid=126&lang=en)

### Keeping the visa current

Lapsed work authorisation puts both the employee and the employer at risk. Teamed holds the renewal calendar so a foreign hire stays compliant for the full assignment.

## The Sri Lanka written employment contract: what must it contain?

Sri Lanka has no single statement document like the UK Section 1 statement. The rule is that clear written terms exist and match the labour statutes.

Sign the written contract on or before the first day of work. It is the binding document. The offer letter is not.

What a Sri Lanka written employment contract should cover under the labour statutes:

- Names and addresses of both the employer and the employee
- Start date of employment
- Job title or a description of the work
- Place of work
- Gross salary, the pay components, and the pay interval (monthly is the usual practice for office staff)
- Working hours and the weekly pattern
- Annual holiday entitlement (the law gives 14 days of paid annual holiday after a full year of service for shop and office employees)
- Casual leave, which also covers short sickness (7 days a year for shop and office employees)
- The weekly rest entitlement of one whole day and one half-day
- Provident Fund and Trust Fund contributions, with the employer adding 12% to the Provident Fund, 3% to the Trust Fund, and the employee giving up 8% to the Provident Fund
- Notice to end the contract, and any probation terms
- Disciplinary and grievance routes

Teamed's standard Sri Lanka contract satisfies the labour statutes. Clients choose the commercial terms; Teamed signs as the legal employer.

Key source: [Shop and Office Employees (Regulation of Employment and Remuneration) Act No. 19 of 1954](https://www.niosh.gov.lk/images/pdfs/downloads/acts_and_cerculars/shop_and_office_employees_2.pdf).

## Onboarding admin in the first week

Days 1 to 7 cover contract signing, Provident Fund and Trust Fund registration, tax details, and bank details.

Teamed runs the fund registrations. The client handles the operational side.

| Onboarding task | Who does it | Day |
| --- | --- | --- |
| Written employment contract signed | Employee and Teamed | Day 0 or 1 |
| Work-visa check completed | Teamed | Day 0 (before start for foreign nationals) |
| National Identity Card copy or visa record collected | Employee submits to Teamed | Day 1 |
| Employees' Provident Fund registration | Teamed | Days 1 to 7 |
| Employees' Trust Fund registration | Teamed | Days 1 to 7 |
| Tax file and PAYE details set up | Teamed | Days 1 to 7 |
| Bank account details collected for payroll | Teamed | Days 1 to 7 |
| Equipment and system access | Client | Days 0 to 1 |
| Manager introduction and first-week plan | Client | Days 0 to 7 |
| 30-60-90 day plan documented | Client (manager) | Days 1 to 14 |

## How does Teamed handle Sri Lanka employment for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Sri Lanka for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

The Provident Fund, the Trust Fund, and monthly payroll all run on **one platform**.

**Real HR and legal experts** handle your Sri Lanka hires, from the first offer letter through every monthly EPF and ETF remittance. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Sri Lanka contractor who converts to direct employment keeps their record. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see when your Sri Lanka hires justify your own entity. Start from [the Sri Lanka hiring overview](/country-hiring-guides/sri-lanka); each guide here takes one layer of Sri Lankan employment law.

Key sources: [Employees' Provident Fund (Central Bank of Sri Lanka)](https://www.cbsl.gov.lk/en/financial-system/financial-institutions/employees-provident-fund), [Employees' Trust Fund Board](https://www.etfb.lk/), and the [Department of Labour](https://www.labourdept.gov.lk/).

## Frequently asked questions

How long does it take to hire someone in Sri Lanka through Teamed?

Teamed can onboard a Sri Lankan citizen within a few business days once the offer is accepted. The written contract must be signed on or before day one. Provident Fund and Trust Fund registration happens in the first week. A foreign national who needs a residence visa with employment approval must hold it before the start date, which adds lead time depending on the visa category and the queue at the Department of Immigration and Emigration.

What retirement-fund contributions apply to a Sri Lanka hire?

Two funds attach to every eligible employee. The Employees' Provident Fund takes 12% from the employer and 8% from the employee on monthly earnings. The Employees' Trust Fund takes a further 3% from the employer only, and it cannot be deducted from the worker's wage. Contributions for a month must reach the funds by the last working day of the following month.

Does Sri Lanka require a written employment contract?

There is no single statement document like the UK Section 1 statement, but written terms should be in place on or before day one and must match the labour statutes. The contract should cover pay, hours, the annual holiday of 14 days after a full year of service, casual leave of 7 days a year, the weekly rest entitlement, fund contributions, and notice. Teamed signs as the legal employer.

Is there a mandatory 13th-month salary in Sri Lanka?

No. Sri Lankan law sets no statutory 13th-month or festival bonus for private-sector employees. Any bonus is contractual or set by a collective agreement, so it only binds the employer if the contract or agreement says so. Quote variable pay as discretionary in the offer letter to avoid creating an expectation.

How many paid public holidays does a Sri Lanka employee get?

Sri Lanka gazettes 13 days Full Moon Poya days as paid public holidays in 2026, including an extra Adhi Poson Poya because 2026 is an intercalary year. On top of the Poya days, the official calendar marks a set of mercantile holidays for private-sector staff, such as Independence Day, the Sinhala and Tamil New Year, May Day, Vesak, and Christmas. Shop and office employees also get one whole rest day and one half-day each week.

Teamed Legal Operations

The funds are where Sri Lanka catches new employers. Three contributions attach to the first wage, the Provident Fund from both sides and the Trust Fund from the employer alone, and they have to reach the funds by the last working day of the following month. Register on day one and the deadline never bites.

A note from Tom Price-Daniel

In Sri Lanka, three retirement funds attach to the very first payslip.  
The employer adds 12 percent to the Provident Fund and 3 percent to the Trust Fund. The employee gives up 8 percent. All of it remits by month end.  
Sign the contract on day one. Register the funds inside the first week.

Tom Price-Daniel · Co-founder, Teamed

## Related Sri Lanka guides

- [Hiring in Sri Lanka, overview](/country-hiring-guides/sri-lanka)parent
- [Sri Lanka termination and severance](/country-hiring-guides/sri-lanka/termination-and-severance)sibling
- [Sri Lanka tax and payroll](/country-hiring-guides/sri-lanka/tax-and-payroll)sibling
- [Sri Lanka employer cost breakdown](/country-hiring-guides/sri-lanka/cost-breakdown)sibling
- [Kenya hiring guide](/country-hiring-guides/kenya/hiring-guide)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Department of Labour, Sri Lanka and the Inland Revenue Department, or speak to a qualified professional, before relying on any specific framework.