Monthly-rated employee estimate
Sri Lanka Gratuity Calculator – Employee Gratuity Estimate
Estimate gratuity in Sri Lanka from the last-drawn monthly wage or salary and completed years of service, while checking the main employee and employer thresholds in the Payment of Gratuity Act.
Employee gratuity calculator
Estimate gratuity for a monthly-rated employee
Use the basic or consolidated wage or salary last drawn, together with applicable cost-of-living, special-living or similar allowances. Do not automatically enter every reimbursement or benefit.
Formula-based estimate
Completed-service gratuity
- Service threshold
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- Employer-size threshold
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- Exclusion check
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Statutory formula
How gratuity is calculated for a monthly-rated employee
For a monthly-rated workman covered by Part II of the Payment of Gratuity Act, the statutory formula is half of the last-drawn monthly wage or salary for every completed year of service. Fractions of an unfinished service year are not added by this calculator.
Eligibility cannot be decided by a calculator alone
The Act’s main section 5 rule concerns an employer who employed 15 or more workmen on any day during the 12 months immediately before termination and a workman with at least five completed years under that employer. The Act also contains exclusions, special cases, payment deadlines, surcharges and limited forfeiture rules. A Labour Tribunal may have powers in circumstances outside the main threshold.
This tool does not cover daily-rated or piece-rated workers, transferred service, land-reform cases, collective agreements, employer schemes or disputes over which earnings form the last-drawn wage. Ask the Department of Labour or a qualified adviser about a real termination.
Common gratuity questions
Are unfinished years included?
The formula in this calculator uses completed years of service. It displays the full service period for context but does not add a proportional payment for the unfinished year.
Can gratuity apply after resignation?
Section 5 describes termination broadly, including termination by the employer or workman, retirement, death, operation of law or otherwise. The remaining statutory conditions and the facts of the employment still need to be checked.