Sri Lanka Gratuity Calculator

Work out the gratuity your employer owes you under the Payment of Gratuity Act No. 12 of 1983: half a month's salary for each completed year of service, once you have 5 or more years of continuous service with an employer who had 15 or more workers. Enter your last drawn wage and your service to see the exact amount. Everything runs in your browser; nothing is uploaded.

The Act uses the wage at termination — basic salary plus the living and special living allowances (Budgetary Relief Allowance). Use the figure on your last payslip.

The Act pays only on completed years. Many employers pro-rate the part year (months ÷ 12) by policy — tick the box below to include it, or leave it off for the strict statutory figure.

Your Gratuity
—
Per Year of Service
—
Eligibility
—

How to Use

  1. Choose how you are paid — monthly salary or daily wage. The formula is different for each.
  2. Enter your last drawn wage — your monthly salary, or your daily wage, at termination.
  3. Enter your completed years of service — whole years only. Add extra months if your employer pro-rates part years.
  4. Press Calculate — you get the gratuity, the per-year figure and whether you qualify.

How Gratuity Is Calculated in Sri Lanka

Monthly-paid workers: last month's wage ÷ 2 × completed years of service. Daily-paid workers: 14 × daily wage × completed years of service. You qualify after 5 years of continuous service with an employer who employed 15 or more workers on any day in the 12 months before you left. The gratuity must be paid within 30 days of termination. Workers who die or retire on ill-health grounds may qualify even before 5 years. Gratuity may be taxed as a terminal benefit under the IRD's terminal-benefits table — check the current rules with your employer or a tax adviser.

Frequently Asked Questions

Do I get gratuity if I worked less than 5 years?

No — under the Act, nothing is payable before 5 completed years of continuous service, except where the worker dies or retires due to ill health. If you resign at 4 years, there is no statutory gratuity.

Does my employer have to have 15 or more staff?

Yes. The Act applies only to employers who employed 15 or more workers on any day during the 12 months before termination. Smaller employers are outside the Act, though they may pay gratuity by contract or policy.

Is the part year counted?

The Act itself pays only on completed years. In practice the Department of Labour and many approved model contracts use a linear pro-ration (years + months ÷ 12). This calculator shows the strict figure by default and lets you add the pro-rata part if your employer follows that practice.

Related Tools

Disclaimer: This is an estimate based on the Payment of Gratuity Act No. 12 of 1983 (sections 2, 5 and 6) as commonly applied. Eligibility, the wage used, and the tax treatment of terminal benefits depend on your contract, your employer's size and the current IRD rules — always confirm the final amount with your employer, the Department of Labour or a qualified adviser. This tool is not affiliated with the Government of Sri Lanka and is not legal advice.