Hire in Sri Lanka

Employer of Record(EOR) in Sri Lanka

Sri Lanka Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

Capital City
ChaadHR entity
Sinhala, Tamil, English


Hire employees
$299.00 / month
Hire contractors
$49.00 / month


Sri Lanka is known for its cinnamon and tea exportation around the globe. The country has been progressing its economic growth over the past years and has a GDP of 83.32 billion USD.

Major Economic Hubs:

Colombo, Sri Jayawardenepura Kotte

Skills in Demand :

Computer Technology, Machine Operation; English Language Skills

Public and Provincial Holidays

Employee Leaves


Social Security

The social security benefits in Sri Lanka consist of:

  • Pension Rights
  • Dependents’/Survivors’ Benefit
  • Invalidity Benefit

The contributions from both employee and employer in each of the funds are given below:

Employers and employee also contribute to the following taxes:

Statutory Benefits

The statutory benefits of Sri Lanka are as follows:

Pension Fund

In order to take advantage of this opportunity, employees must be at least 55 years old. A one-time payment will be made into an investment account on your behalf with the interest that funds generate as protection for you during retirement.

Employees Trust Fund (ETF)

The company provides a retirement benefit to its employees in the form of 3% monthly salary deductions for their contributions. This not only stimulates economic democracy but also promotes employee ownership and welfare through participation within financing opportunities as well.

Employees Provident Fund (EPF)

To ensure that employees can live in retirement without depending on state or society, this fund offers them a guaranteed 12% contribution from their employers and 8%. The employee must also contribute at least 4 monthly gross earnings for 40 years before receiving any payment back.

Maternity Leave

The duration of 84 days (12 weeks) is the amount of time that mothers are entitled to take off from work before their due date. This includes both pre- confinement and post natal leave, but does not include weekends or holidays which can be used as sick days instead if needed.

Fringe Benefits

Fringe benefits are the additional benefits provided to an employee, though it depends on the employers based on mutual agreements. Fringe Benefits in Sri Lanka are mentioned below:

  • Medical Care
  • Employment Injury
  • Allowances
 (Travel and Internet)
  • Meal Vouchers

Exempt Benefits

The exempt benefits in Sri Lanka include:

  • Internet allowances
  • Travel allowances
  • Telecom allowances
  • Insurance, and social security contributions

Termination/Severance in Sri Lanka

Termination Process

Either a prior written consent of the employee or the prior written approval of the Commissioner of Labor is required to terminate the services of an employee.

In the case of closure of establishment or removal of employees due to winding up of sections or retrenchment, employers should apply for the approval of the Labor Commissioner.

Notice Period

Employees under the probationary period will be given up to 2 weeks of notice period. On the other hand, employees outside the probationary period will have a notice period based on their contract.

Severance Pay

The severance pay depends on the years of service provided by the individual:

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“Hiring compliance is always a complicated issue during global hiring. ChaadHR optimized this problem transparently and thoroughly. We no need to worry furthermore, and our employees and contractors also feel comfortable and give us positive feedback about ChaadHR."

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Hiring Manager, Wimton Logistics

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