Salary Slip Format Sri Lanka

Ready-To-Use Salary Slip Format Sri Lanka

Salary Slip Format Sri Lanka in Excel, Google Sheets, and OpenOffice Calc that helps to make salary slips as per the Sri Lankan pay structure.

We have created this template on the basis of the salary structure in Sri Lanka. It is simple and easy to use. Insert the Basic, applicable allowances and deductions. That’s it, your salary slip is ready to print.

Download Free Salary Slip Format Sri Lanka (Excel, OpenOffice Calc, and Google Sheet)

Salary Slip Format Sri Lanka

Microsoft Excel OpenOffice Calc Google Sheet

Additionally, you can also download other HR templates such as Salary Slip Excel Template India, Salary Slip Format UAESimple Salary Sheet, and Employee Salary Sheet depending on the company requirement.

Payroll Template With Attendance

You can also download a fully automated Payroll Template With Attendance to easily perform all your payroll tasks.

In case, you want to customize any of the above templates feel free to contact us. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

How To Use This Salary Slip Format Sri Lanka?

This Salary Slip Template Sri Lanka is a detailed employee payslip generally used by bigger companies and corporates in Sri Lanka.

It consists of a detailed bifurcation of allowances and deductions. It includes allowances like the cost of living allowance, conveyance, medical, etc. Moreover, it includes deductions such as EPF, EFT, APIT, salary advances, etc.

This sheet consists of predefined formulas for subtotals columns of allowances, deductions, gross salary, and net salary. Hence, all you need to do is to enter the company details, employee details, and salary details.

Components of Salary Slip Format Sri Lanka

Salary Slip Format Sri Lanka consists of 6 sections: Company Details, Employee Information, Attendance, Bank Details, Salary Calculation Section, and Approval Section.

Company Credentials

Salary Slip Company Details

Enter your Company name and Company Address at the top. If you are printing the salary slip on a company letterhead then set the print area accordingly.

Enter the month in MMM-YY format for which you want to prepare the salary slip. Just enter the first date of the month and it will display in MMM-YY format like this “Jan-21”.

Salary Slip UAE

Sometimes, due to excel settings, the file might not display this particular format. To convert the date format into the following format follow the below-given instructions:

  1. Go to cell and right-click and select “Format cells”.
  2. Click on the “Number” tabs and select Custom format. Select “mmm-yy”  or manually type mmm-yy.

Employee Information

Salary Slip Employee Info

The employee information section consists of the following: Employee ID, Employee Name, Designation, EPF No.

Employee Id is a unique number given by HR to identify the employee. You can configure it according to your choice.

Here the first two letters denote the company’s initials, the middle two digits denote the year and the last two digits denote the employee number.

It is mandatory by law to display the EPF number of the employee on the salary slip document. EPF number is Alpha Numeric. When the employer registers himself in the EPF, he receives a number with an English letter following the number 85451/D.

Then the employer allocates a number to the employee like 85451/D/01. The employer needs to allocate these numbers in sequence like 1, 2, and 3 in the order of their joining the establishment.

Moreover, you can automate this process by using the Data validation function for employee name, employee id, designation, and EPF No by creating a dropdown list.

Attendance Details

Employee Attendance Sri Lanka

This section consists of the following heads: Working Days, Leaves Allowed, Leaves Taken, and No Pay Days.

The template auto-calculates the No Payable Days. If the employee has not taken any leave then full payment will be made.

If an employee takes a leave more than the allowed limit then those days will be deducted as No Pay Days. It is calculated on gross salary includes allowances.

The cell displays No pay Days after deducting them from the allowed leaves. If the No-Pay Days are less than or equal to allowed leaves then the cell will “0”.

If leaves taken are greater than the allowed leaves then it deducts leaves allowed from leaves taken and displays the No-Pay days. The formula applied here is =IF(C14<=C13,0,(C14-C13)).

Usually, companies deduct salary on the basis of 22 days pay cycle. Thus, the gross pay is divided by 22 days and then multiplied by the number of No Pay Days.

Furthermore, some companies in Sri Lanka also calculate this on the basis of 30 days.  Thus, the gross pay is divided by 30 days and then multiplied by the number of No Pay Days.

Bank Details

Salary Transfer Details

The Bank Details section consists of details pertaining to the employee’s bank account. It is the account to which the employer credits the salary. These heads include Bank Name, Account Number, and Branch Name.

Salary Calculations

In the Salary Calculation section, you need to insert salary details. Most of the cells consist of predefined formulas. This section consists of the following heads:

Basic Salary
Cost of Living Allowance
Food Allowance
Conveyance Allowance
Medical Allowance
Gross Salary
Overtime Pay
Reimbursements
Bonuses
Salary Before Deduction
No Pay Days Deductions
Salary Advance
EPF Employee Contribution
APIT
Other Deductions
Total Deductions
Salary Payable
Amount in Words

Salary Calculations Sri Lanka

Basic Salary

Basic salary is the fixed amount that an employer pays to his employee to render his/her services. EPF and ETF are both calculated on the basic salary. Basic salary differs depending on industry, designation, and location. Insert the respective basic salary of the employee in this cell.

Cost of Living Allowance

Cost of Living Allowance depends on company policy. Most corporates give their employees CLA. Leave it blank if the employment contract doesn’t consist of this clause.

Conveyance Allowance

Conveyance Allowance is the allowance that an employer pays for compensating the employees from travel to work and back. The employer provides this allowance only if there is no transportation service for work. If the employer provides company transportation, then insert 0.

Medical Allowance

An employer pays Medical allowance to employees to fulfill their expenses medications as well as illness. Usually, it is a fixed amount and is paid every month. This amount depends on company policy. It is also paid on a reimbursement basis where the employee has to furnish actual bills.

Gross Salary

Gross salary is the salary inclusive of allowances. No-Pay Day deduction is carried on the basis of gross salary.  The main reason behind this is that as the basic salary decreases according to attendance, the allowances will decrease on the basis of attendance.

Gross Salary = Basic Salary + Total Allowance

Salary Calculations Sri Lanka

Overtime Pay

The law entitles an employee to overtime pay for the additional hours he/she works above the normal working hours. It is calculated upon the gross salary (basic salary + the agreed allowances). The employee gets 1.5 times overtime pay as per the Labor Laws.

Overtime pay = (Gross Salary / Total Regular Hours X 150%) * Overtime hours

Reimbursements

The reimbursement section is for expenses that the employer reimburses. The reimbursement includes business travel by employee, purchase of stationery on behalf of the employer, medical expenses bigger in nature, etc. All these payments/reimbursements depend on company policy or employee contracts.

Bonus Pay

Bonus pay is an additional benefit that an employer pays occasionally. It is just an extra pay based on employee performance or a festive perk.

All the above three aren’t included in gross salary as the nature of these salary heads is individual. Reimbursement is based on the actual amount spent, the bonus depends on performance or company policy, and the overtime pay amount is above the regular salary amount.

Salary Before Deductions

Total Salary Before Deductions is the amount of salary including basic, allowances, and additional perks.

Salary Deductions Sri Lanka

No Pay Day Deductions

You can calculate the No-Pay Day Deductions in two different ways. Usually, companies deduct salary on the basis of 22 days pay cycle. Thus, divide the gross pay by 22 days and then multiply by the number of No Pay Days.

Secondly, some companies in Sri Lanka also calculate this on the basis of 30 days.  Similarly, divide the gross pay by 30 days and then multiply by the number of No Pay Days.

Salary Advance

In the deduction sections, insert the amount of salary advance the employee has received. If not then enter 0.

EPF Employee Contribution

Every employee in Sri Lanka has to deduct 8% of the basic salary from his/her salary to contribute to Employee Provident Fund as per the law.

For more information on this topic kindly click here: EPF Sri Lanka

APIT

APIT stands for Advanced Personal Income Tax. The employer can deduct this tax from both; Sri Lankan Citizens as well as foreigners residing in Sri Lanka. An employer can deduct this tax only if the employee gives his/her consent to deduct it.

For more information on this topic click here: Advanced Personal Income Tax (APIT) Sri Lanka

Total Deductions

This cell displays the total of all the deduction amounts.

Followed by these deductions, there are EPF and ETF employer contribution amounts. These amounts are not included in any calculations. But it is necessary to show in the salary slip the amount contributed by an employer EPF (Employee Provident Fund) and ETF (Employee Trust Fund).

Salary Calculations Sri Lanka

As per the Law, it is mandatory to contribute a total of 20% of the basic salary to the employee’s EPF account. Out of this, the employee contributes 8% and the employer contributes 12%. Whereas for ETF there is no employee contribution. In the ETF employer contribution, the employer has to make 3% of the basic salary.

Salary Payable

Net Salary or salary payable auto-calculates as it contains a predefined formula.

Net Salary = (Basic + Allowances +Additional Perks) – Deductions

Amount in Words

SpellNumber Sri Lankan Rupees

Amount in words displays the salary amount in text format. It uses SpellNumber Function which is manually inserted into the excel file. In OpenOffice Calc uses NUMBERTEXT Function add-in. Whereas the Google Sheet also uses NUMBERTEXT Function Add-in.

I have used the SpellNumber without currency function in Excel along with CONCATENATE Function to display the amount as shown below. The formula used here is: =”LKR” & ” ” & SpellNumber1(H29). We will publish this function on our website soon.

In OpenOffice Calc and Google Sheet, the template uses NUMBERTEXT Add-in along with Proper Function and Concatenate Function. We will soon publish how to use install and use NUMBERTEXT Add-in Google Sheets.

Approval Section

Your Salary Slip is ready. Now click on the “Print” button on the top right and print the salary slip.

Salary Slip Sri Lanka

Before paying the salaries, the staff needs to get approval from the authorities.

Frequently Asked Questions

What is APIT in Sri Lanka?

Advanced Personal Income Tax (APIT), as the name states, is the advance Income tax similar to Indian TDS. An employer can deduct it from the salary payable of the employee. Moreover, under APIT regulations, an employer can only deduct APIT when an employee provides his consent to deduct it. No matter either the employee is residing in Sri Lanka or a Sri Lankan citizen. However, if a Sri Lankan citizen residing outside of Sri Lanka, employers don't require consent before making this tax deduction.

What is EPF deduction in Sri Lanka?

EPF Srilanka is a retirement benefit act established in 1958. It is mandatory by law to contribute to this Provident Fund for both the Employee and employer. Employee Contribution is 8% of his basic pay whereas 12% of the basic pay is the employer contribution. Thus the total contribution towards EPF is 20%.

What is ETF Sri Lanka?

Unde ETF scheme, it is mandatory for an employer to contribute 3% of the gross earnings of the employee to an ETF account. All employees are entitled to ETF from the first day of his/her employment. Even though he/she is permanent, temporary, apprentice, casual, or a shift worker. Moreover, employees working on piece rate, contract basis, or work performed basis are also eligible.

What is No Pay Leave Deductions?

Deduction of money above the allowed number of leaves to the employee is called No Pay Leave Deduction. You can calculate the No Pay Leave Deduction amount by using 2 methods: Working Days or Calendar Days depending on the company policy. If the employer chooses to deduct on a working day basis then divide the Gross Salary by 22 days and then multiply it with the number of No Pay Leaves. Whereas, if the employer decides to make the No Pay Leave Deductions then divide the gross salary by calendar days of that respective month and multiply with the number of No Pay Leaves.

How To Calculate Overtime Pay according to Sri Lankan Laws?

If an employee works beyond the normal or stipulated working hours mentioned in his/her contract, The law entitles them to overtime pay. Overtime pay is 1.5 times the regular pay. Moreover, an employer cannot make his/her employee work for more than exceed 12 hours a week. To calculate Overtime Pay, divide the gross salary by 180 (total working hours allowed for a month) and then multiply it with the total number of overtime hours worked by the employee.

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