Hire and pay employees in Sri Lanka, hassle-free
With Deel, your business can easily hire employees in Sri Lanka. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Sri Lanka is 3 days with Deel.
Onboard, pay and manage employees in Sri Lanka with Deel
Usually, to hire in Sri Lanka, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Sri Lanka quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Sri Lankan Rupee - LKR
Capital Sri Jayawardenepura Kotte and Colombo
Official language Sinhala, Tamil & English
Payroll cycle Monthly
All the necessary benefits for Sri Lanka built right in
Deel allows you to provide localized benefits for employees in Sri Lanka within minutes. All in one manageable online dashboard in a single HR platform.
- Gratuity Payment
- Social Security
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Sri Lanka
Navigate the tabs below to learn everything you need to know about hiring an employee in Sri Lanka
Minimum Wage Requirements
Sri Lanka's minimum wage rate is LKR 12,500 per month.
Individual Income Tax
The individual income tax ranges from 6% to 36%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| LKR 0-1,200,000 | 0% |
| LKR 1,200,000-1,700,000 | 6% |
| LKR 1,700,000-2,200,000 | 12% |
| LKR 2,200,000-2,700,000 | 18% |
| LKR 2,700,000-3,200,000 | 24% |
| LKR 3,200,000-3,700,000 | 30% |
| Over LKR 3,700,000 | 36% |
Payroll Cost
The employer cost is generally estimated at 15% of the employee salary.
- EPF Employer contribution - 12%
- Employees Trust Fund contribution - 3%
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day and 40 hours per week. The standard workweek is from Monday to Friday. However, extending the workweek to 45 hours working for 4 hours on Saturdays is possible.
Overtime payment is mandatory and is not included in the salary. Hours outside of standard work hours are considered overtime and before working them, the employee needs to get approval from the employer. Employees can work a maximum of 12 hours of overtime per week and get paid 150% of the hourly rate.
Download the complete guide to hiring in Sri Lanka
Hiring in Sri Lanka, hassle-free
With Deel, your business can easily hire employees in Sri Lanka with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Sri Lanka and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
15%
of employee salary