The Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) are mandatory social security schemes in Sri Lanka. Employers must ensure timely contributions and accurate reporting to stay compliant with the Department of Labour.

Contribution structure:

• EPF: 8% from the employee + 12% from the employer

• ETF: 3% from the employer only

Key compliance steps:

• Register the business and employees with the Department of Labour

• Deduct and remit monthly contributions by the 30th of each month

• Submit Form C and other required documents on time

• Maintain payroll records and payment proofs for audit

Non-compliance can lead to fines, legal issues, and loss of employee trust. Automating payroll and working with an HR/payroll expert helps ensure error-free reporting.