ETF for employers in Sri Lanka: the 3% contribution, returns and deadlines (2026)

ETF is the simpler of Sri Lanka's two provident contributions, and the one most often forgotten by new employers because it never appears on a payslip. It is a 3% employer-only contribution to the Employees' Trust Fund Board, calculated on the same earnings as EPF.

Who must contribute

Every employer with one or more employees, in any type of employment, from the first month. Coverage matches EPF: permanent, probationary, contract, casual and piece-rate workers are all in. Unlike EPF, there is no exemption for employers with an approved private provident fund; ETF is payable regardless.

The contribution

Three per cent of each employee's total earnings for the month, paid by the employer. The employee contributes nothing and nothing may be deducted from wages for it.

Earnings base

The same definition as EPF: basic salary, cost-of-living allowance, fixed monthly allowances, commission and payment for holiday work. Overtime, expense reimbursements and discretionary bonuses are excluded. If your EPF base is right, your ETF base is right; the two should always be computed from the same figure.

Deadline and payment

Contributions are due by the last working day of the month following the month the earnings relate to, the same as EPF. Employers with 15 or more employees remit monthly with a member-level schedule. Employers with fewer than 15 employees may remit monthly but file the half-yearly return (Form R4) covering January to June and July to December.

Payment is made to the ETF Board through designated banks or the Board's online portal. Most Sri Lankan payroll systems generate the monthly ETF schedule in the accepted format alongside the EPF C-Form.

Registration

An employer registers with the ETF Board when starting to employ staff, using the same employer number allocated by the Labour Department for EPF. Each employee is registered by the employer; the member number is the same as the EPF member number.

Surcharges

Late contributions attract a surcharge on the unpaid amount rising from 5% for a delay of up to 10 days to 50% for a delay over 12 months, mirroring EPF. Non-payment is an offence.

Claims

Members may claim their ETF balance on leaving employment, on retirement at 60, on permanent migration, on total incapacity, or once every five years while remaining in employment. The employer's role is to certify the member's service on the claim form; the Board pays the member directly.

Payroll checklist

• ETF base equals EPF base for every employee, every month.
• ETF appears in the employer cost report, never as a deduction on the payslip.
• Monthly schedule totals match the bank payment.
• New employees registered in the first month.
• Half-yearly return filed if under 15 employees.