Gratuity Calculator for Sri Lanka - Payment of Gratuity Act
Enter your last drawn pay and your years of service to see the gratuity the Payment of Gratuity Act, No. 12 of 1983, gives you.
Maintained by Hirantha Sandaruwan Lakshan. Rules checked 13 October 2026 against Payment of Gratuity Act, No. 12 of 1983 and one more source.
About this tool
It uses the Act's own rules: half a month's pay for each completed year if you are paid monthly, fourteen days' wage if you are not, and nothing under five completed years. Your figures stay in your browser.
How it works
The Act says an employer who employs, or has employed, fifteen or more workmen on any day in the twelve months before the end of service must pay a gratuity to a workman with at least five completed years of service. The gratuity is due within thirty days of the end of service.
For a monthly-rated workman the gratuity is half a month's wage or salary for each year of completed service, worked out on the pay last drawn. For any other workman it is fourteen days' wage or salary for each completed year.
The Act counts as wage or salary the basic or consolidated pay, cost-of-living allowance, special living allowance or similar allowances, and piece rates. A year means a completed period of twelve months, so a part year does not count; the calculator counts the last day you worked as served.
A late payment carries a surcharge of 10 to 30 per cent depending on how late it is. Estates vested in the Land Reform Commission have a separate rule that this calculator does not cover.
Worked examples
A monthly salary of Rs. 100,000 and 8 years of service
Half a month's pay is Rs. 50,000 for each year, so 8 years gives Rs. 400,000.
A daily wage of Rs. 3,000 and 6 years
Fourteen days' wage is Rs. 42,000 for each year, so 6 years gives Rs. 252,000.
Four years and eleven months of service
Only completed years count and the Act needs five, so no gratuity is due under the Act, though your contract may give one.
The rules in the Payment of Gratuity Act, No. 12 of 1983
| Question | Answer in the Act |
|---|---|
| Who must pay? | An employer who employs or has employed 15 or more workmen on any day in the 12 months before the end of service |
| Who is entitled? | A workman with at least 5 completed years of service |
| How much, if paid monthly? | Half a month's wage or salary for each completed year, at the pay last drawn |
| How much, if paid otherwise? | Fourteen days' wage or salary for each completed year |
| When is it due? | Within 30 days of the end of service |
| What counts as pay? | Basic or consolidated pay, cost-of-living and similar allowances, piece rates |
Frequently asked questions
Do I get gratuity if I resign?
The Act gives the gratuity when the service ends, and the Supreme Court has read section 5 as making the reason for the end of service (resignation, dismissal, retirement or death) irrelevant to the entitlement. Check your own case with the Department of Labour.
What if I worked less than five years?
The Act gives no gratuity under five completed years of service. Some contracts and company schemes do.
My employer has fewer than 15 workers. Do I still get it?
The Act applies to employers who employ or have employed fifteen or more workmen on any day in the twelve months before the end of service. A smaller employer is not covered by the Act, though it may pay a gratuity voluntarily.
Is gratuity the same as EPF or ETF?
No. EPF and ETF are funds built from monthly contributions. Gratuity is a separate payment from the employer when service ends.
Are overtime and commission counted?
The Act lists basic or consolidated pay, cost-of-living, special living and similar allowances, and piece rates. It does not list overtime or commission.
How long does the employer have to pay?
Thirty days from the end of service. After that a surcharge of 10 to 30 per cent, depending on the delay, is added.
Sources & references
Updated Oct 13, 2026