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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.

½ monthfor each completed service year

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.

LKR

Formula-based estimate

Completed-service gratuity

Estimated gratuity—Before any lawful adjustment or forfeiture
Completed service years—
Amount for each completed year—
Total service period—
Service threshold
—
Employer-size threshold
—
Exclusion check
—

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.

Amount per completed yearLast-drawn monthly wage or salary ÷ 2
Estimated gratuityAmount per year × completed service years

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.

Official legal sources