How much tax will I pay on my salary increment in Sri Lanka?

It depends on your marginal APIT band, not a flat rate. Only the part of your new salary above the previous band's ceiling is taxed at the higher rate. A raise inside the 6% band costs 6 cents in the rupee; one that pushes you into the 24% band taxes only the amount crossing that line at 24%. The calculator above shows the exact rupee figure for your numbers.

Why did my take-home barely change after a pay rise?

Two deductions eat into every raise: employee EPF at 8% of the extra gross, plus APIT at your marginal rate. If your raise crosses into a higher tax band, a larger slice goes to APIT. On a Rs 50,000 raise from Rs 250,000 to Rs 300,000, you keep about Rs 35,500 — the other Rs 14,500 is EPF and tax.

What is the marginal tax rate on a raise in Sri Lanka for 2025/26?

The top rate touched by your income. On taxable income (annual gross minus the Rs 1,800,000 relief) the bands are 6%, 18%, 24%, 30% and 36%. In monthly terms APIT starts above Rs 150,000 and reaches 36% above Rs 358,333. A raise that stays in one band is taxed at that band's rate; one that straddles two is taxed partly at each.

Does EPF get deducted from my salary increment?

Yes. The statutory employee EPF contribution is 8% of your total EPF-liable earnings under the EPF Act No. 15 of 1958, so a raise increases your EPF deduction by 8% of the extra gross. It is not lost money — it goes into your own retirement fund — but it does reduce the cash that reaches your account. Your employer also adds 12% EPF and 3% ETF on top, at no cost to you.

At what monthly salary does APIT (PAYE) start in Sri Lanka?

APIT begins once monthly regular profits exceed Rs 150,000, which is the Rs 1,800,000 annual personal relief spread over 12 months. Below that, no personal income tax is withheld. The first rupee above the threshold is taxed at 6%.

Is the increment taxed at my full new tax band?

No — Sri Lanka uses progressive bands, not a flat rate on your whole salary. Only the portion of income falling inside each band is taxed at that band's rate. So a raise is taxed at the marginal rate(s) it spans, which is why the effective rate on the raise can sit between two band rates when it straddles a boundary.

Does this calculator handle public-sector circular raises or arrears?

No. This tool is for private-sector monthly, steady-state salaries. Phased public-sector increases (e.g. Budget circular raises) and one-off arrears/back-pay use different rules. It also treats your entered gross as fully EPF-liable and excludes ETF, gratuity and non-EPF allowances — see the assumptions note. Figures were last reconciled to source on 2026-07-15.

Sri Lanka · Finance

Sri Lanka Salary Increment (Pay Rise) Calculator

Getting a raise? See how much you actually keep. This tool compares your before-and-after gross, EPF and APIT for Y/A 2025/26, then isolates the increment — the extra rupees in hand, what goes to tax, and the percentage of the raise you keep. Free, no signup, sources cited.

By Induwara Ashinsana— Executive Director, Ryzera TechnologiesUpdated Jul 15, 2026

Your raise, after tax & EPFY/A 2025/26

IRD + EPF verified

Current monthly gross (Rs)

Total monthly pay before EPF and tax.

Your raise

The pay rise as a percentage of your current salary.

Quick % presets

Gross increase

Rs 50,000

Extra EPF (your savings)

Rs 4,000

Extra APIT

Rs 10,500

Net take-home increase

Rs 35,500

You keep71%of the raise · effective APIT on the raise 21%

Of your Rs 50,000 raise you keep Rs 35,500 in hand — Rs 10,500 goes to APIT and Rs 4,000 to your own EPF.

This raise straddles two APIT bands, so its effective tax rate sits between them.

Before vs after

Line	Current	New
Gross	Rs 250,000	Rs 300,000
EPF (8%)	− Rs 20,000	− Rs 24,000
APIT (monthly)	− Rs 8,000	− Rs 18,500
Take-home	Rs 222,000	Rs 257,500

Sources cited: IRD APIT Tax Chart Y/A 2025/26 and the EPF Act No. 15 of 1958. Monthly, single primary employment; excludes ETF, gratuity, and non-EPF-liable allowances.

How it works

A pay rise never lands in your account whole. Two things take a slice: the statutory 8% employee EPF contribution, and Advance Personal Income Tax (APIT, the current name for PAYE) at your marginal rate. This calculator models both for the Year of Assessment 2025/26 (1 April 2025 – 31 March 2026) using the same Inland Revenue Department brackets and EPF Act rate already verified elsewhere on this site — no separate rate data is introduced.

For each salary — current and new — it computes three lines and their total:

EPF (8%): 8%of the monthly gross, under the Employees' Provident Fund Act No. 15 of 1958 §10(1)(a). Toggle it off if you want the pre-EPF view.
APIT (monthly): the IRD's Table 01 formula APIT = rate × M − constant for the band containing monthly gross M. Tax starts above Rs 150,000 (the Rs 1,800,000 annual relief ÷ 12) and steps through 6%, 18%, 24%, 30% and 36%.
Take-home: gross − EPF − APIT.

It then subtracts current from new to isolate the raise: the gross increase, the extra EPF, the extra APIT, and the netrise in take-home. The headline "you keep" figure is that net rise as a percentage of the gross raise, and the "effective APIT on the raise" is the extra tax divided by the gross increase. When a raise straddles two tax bands — say from the 18% band into the 24% band — that effective rate lands between the two, which is exactly why a raise can feel smaller than the headline number.

Every APIT figure is cross-checked two ways: the monthly Table 01 formula and the annual progressive-bracket walk (annual tax ÷ 12) agree to the rupee. The calculator treats your entered gross as fully EPF-liable and covers a single primary employment only; ETF, gratuity, arrears/back-pay and non-EPF allowances are out of scope for this version.

Worked examples

Rs 250,000, +20% → Rs 300,000 (raise Rs 50,000)

Current APIT: 0.18 × 250,000 − 37,000 = Rs 8,000
Current EPF: 0.08 × 250,000 = Rs 20,000 → take-home Rs 222,000
New APIT: 0.24 × 300,000 − 53,500 = Rs 18,500
New EPF: 0.08 × 300,000 = Rs 24,000 → take-home Rs 257,500
Extra APIT Rs 10,500 · extra EPF Rs 4,000
Net take-home increase: Rs 35,500 → you keep 71% of the raise

The raise straddles the 18% and 24% bands, so its effective APIT rate is 21% — between the two.

Rs 140,000, +10% → Rs 154,000 (raise Rs 14,000)

Current APIT: Rs 0 (Rs 140,000 is below the Rs 150,000 threshold)
Current EPF: 0.08 × 140,000 = Rs 11,200 → take-home Rs 128,800
New APIT: 0.06 × 154,000 − 9,000 = Rs 240
New EPF: 0.08 × 154,000 = Rs 12,320 → take-home Rs 141,440
Extra APIT Rs 240 · extra EPF Rs 1,120
Net take-home increase: Rs 12,640 → you keep about 90% of the raise

Only the Rs 4,000 above the Rs 150,000 tax-free line is taxed, at 6% (Rs 240). The raise crosses the point where APIT begins.

Rs 320,000, +Rs 50,000 → Rs 370,000 (into the top band)

Current APIT: 0.30 × 320,000 − 72,500 = Rs 23,500 (30% band)
Current EPF: 0.08 × 320,000 = Rs 25,600 → take-home Rs 270,900
New APIT: 0.36 × 370,000 − 94,000 = Rs 39,200
New EPF: 0.08 × 370,000 = Rs 29,600 → take-home Rs 301,200
Extra APIT Rs 15,700 · extra EPF Rs 4,000
Net take-home increase: Rs 30,300 → you keep about 61% of the raise

This raise crosses from the 30% band into the 36% top band above Rs 358,333, so its effective APIT rate (31%) is the highest of the three examples.

Frequently asked questions

Sources & references

Rates and formulas were last cross-checked against these IRD and CBSL sources on 2026-07-15. This tool reuses the verified APIT and EPF modules already on the site, so brackets stay in sync every April (new SL Year of Assessment) and after any Inland Revenue Amendment Act.

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