Salary / APIT Tax Calculator — Sri Lanka
Calculate your net take-home pay after statutory EPF and APIT tax under the Inland Revenue (Amendment) Act No. 02 of 2025.
Salary Details
Rates: Inland Revenue (Amendment) Act No. 02 of 2025 (Effective 1 April 2025)
Statutory Relief: Tax-free allowance is LKR 1,800,000/year (LKR 150,000/month). APIT tax is 0% if monthly gross earnings are LKR 150,000 or below.
Inland Revenue (Amendment) Act No. 02 of 2025 Tax Slabs
Certified in March 2025 and effective for the Year of Assessment 2025/2026 (starting 1 April 2025), the Parliament of Sri Lanka enacted substantial relief for salary earners by raising the personal tax threshold and restructuring tax brackets.
Official Tax Slabs (Effective 1 April 2025)
| Annual Taxable Income Slab | Monthly Equivalent | Tax Rate |
|---|---|---|
| First LKR 1,800,000 | Up to LKR 150,000 / mo | 0% (Tax-Free Relief) |
| Next LKR 1,000,000 | Next LKR 83,333 / mo | 6% |
| Next LKR 500,000 | Next LKR 41,667 / mo | 18% |
| Next LKR 500,000 | Next LKR 41,667 / mo | 24% |
| Next LKR 500,000 | Next LKR 41,667 / mo | 30% |
| Balance / Remainder | Above LKR 358,333 / mo | 36% |
How Net Take-Home Salary is Calculated
- Gross Monthly Salary: Basic salary plus fixed allowances and overtime payments.
- APIT Calculation: Under IRD employer withholding guidelines, APIT is computed on gross remuneration exceeding the LKR 150,000 monthly threshold across the statutory 6%, 18%, 24%, 30%, and 36% progressive bands.
- Employee EPF Deduction: 8% of your basic salary + fixed allowances is contributed to your Employees' Provident Fund account.
- Net Take-Home Salary: Gross Monthly Remuneration − (Employee 8% EPF + Monthly APIT Tax).
Frequently Asked Questions
What is the personal tax relief under Act No. 02 of 2025?
Personal relief was officially increased from LKR 1,200,000 to LKR 1,800,000 per annum (LKR 150,000 per month) effective 1 April 2025. If you earn LKR 150,000 or less per month, you pay zero APIT income tax.
What happened to the 12% tax slab?
Under Inland Revenue (Amendment) Act No. 02 of 2025, the initial 6% slab was widened to cover the first LKR 1,000,000 of taxable income, and the subsequent progressive tax bands step up to 18%, 24%, 30%, and 36%.
Is 8% employee EPF deducted before APIT tax is calculated?
Under Inland Revenue Department (IRD) employer withholding guidelines and Act No. 02 of 2025, Advance Personal Income Tax (APIT) is calculated directly on gross employment remuneration exceeding the LKR 150,000 monthly personal relief. The employee 8% EPF contribution is a statutory retirement deduction that reduces your final take-home salary, but it is not subtracted from gross remuneration prior to applying the APIT withholding tax slabs.
Is this calculator official?
This calculator models the statutory withholding tables issued by the Inland Revenue Department (IRD) under Act No. 02 of 2025. It is provided for personal estimation; consult your company's payroll department for individual pay slip verification.