Jira & Confluence 
Bitrix24 Payment of Gratuity Act No. 12 of 1983 · 5 years · paid within 30 days
Gratuity calculator Sri Lanka — half a month's salary for each completed year, under the Payment of Gratuity Act
Short answer. Enter your last basic salary and cost of living allowance, the day you joined and your last working day: you see your completed years, your gratuity and the date your employer must pay it by — with a letter asking for it. Who gets it: 5 or more completed years with the same employer, whose workforce was 15 or more on any day in the 12 months before you left (Payment of Gratuity Act No. 12 of 1983, s 5(1)).
- Gratuity must be paid — within 30 daystype the date
- Still unpaid? Go to the Labour Office — a month after the due datetype the date
Check your own case.
The 30 days are section 5(1) of the Act; after that a surcharge of 10% to 30% applies (s 5(4)). The second date is a suggestion, not a legal deadline.
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Gratuity under the Act
Your gratuity — completed years, the amount and the date it must be paid by
Your last basic salary and cost of living allowance (or your daily wage), the day you joined and your last working day. You see your completed years, the gratuity under the Payment of Gratuity Act and the 30-day deadline — and a letter asking your employer to pay.
- Send the letter (or hand it over and keep a copy): the Act gives your employer 30 days from your last working day.
- Check your contract or collective agreement — if it gives more than the Act, that is what you should get.
- Not paid after 30 days? The surcharge starts at 10%; complain to the Labour Office for your area with your appointment letter, salary slips and NIC.
Arithmetic under the Payment of Gratuity Act, No. 12 of 1983 (Acts 41 of 1990 and 62 of 1992): employer with 15 or more workmen, at least 5 completed years; half a month's wage or salary (basic + cost of living or similar allowance) for each completed year, or 14 days' wage if paid by the day, at the rate last drawn; payable within 30 days, then a surcharge of 10–30%. Completed years are counted with the last working day included. Before tax; not legal advice.
Lida, Layers template assistant
Tell me your salary and your dates, and I'll work out your gratuity under the Act.
The letter below asks your employer to pay within 30 days.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Who gets it | 5 or more completed years with the same employer, whose workforce was 15 or more on any day in the 12 months before you left | Payment of Gratuity Act No. 12 of 1983, s 5(1) |
| How the job ends | Any way: resignation, termination, retirement — or death, when it is paid to the heirs | s 5(1), s 9 |
| Paid by the month | ½ month's wage or salary × completed years, at the rate last drawn | s 6(2)(a) |
| Paid by the day or piece rate | 14 days' wage × completed years, at the rate last drawn | s 6(2)(b) |
| Pay that counts | Basic or consolidated salary + cost of living, special living or similar allowance + piece rates | s 20 |
| When | Within 30 days; late: +10% up to 1 month, 15% to 3, 20% to 6, 25% to 12, 30% after a year | s 5(4) |
The Act as published by the Department of Labour, with the 1990 and 1992 amendments. A collective agreement, award or contract that gives more is paid instead — not on top (s 10). Domestic servants and personal drivers in private households, and people on a non-contributory pension, are outside section 5 (s 7).
Step by step
What to do, in order
1
Enter your pay
Last basic salary and cost of living allowance — or your daily wage if you're paid by the day.
2
Enter your dates
The day you joined and your last working day: the calculator counts completed years.
3
Ask for it in writing
The Word file has the calculation and a letter asking your employer to pay within 30 days.
Questions
How is gratuity calculated in Sri Lanka?
If you're paid by the month: half of your last basic salary plus cost of living allowance, for each completed year. Example: Rs. 62,000 + Rs. 8,500 = Rs. 70,500; half is Rs. 35,250; × 11 years = Rs. 387,750. If you're paid by the day: 14 days' wage for each year — Rs. 3,500 × 14 × 7 years = Rs. 343,000.
Do I get gratuity if I resign?
Yes. Section 5(1) covers every way service ends — resignation, termination, retirement or death — as long as you have at least 5 completed years and the employer had 15 or more workmen in the 12 months before you left.
What if I have 4 years and 11 months?
Under the Act nothing is due: it counts completed 12-month years and needs at least five. A collective agreement or your contract may be more generous, so check your letter of appointment.
When must my employer pay, and what if they're late?
Within 30 days of your last working day. After that the Act adds a surcharge on the gratuity: 10% for up to a month late, 15% up to 3 months, 20% up to 6, 25% up to 12 and 30% after a year. The Commissioner of Labour can certify the amount and recover it through the Magistrate's Court.
My employer has fewer than 15 workers — do they have to pay?
Section 5 of the Act applies to employers with 15 or more workmen. With fewer, gratuity depends on your contract, a collective agreement or an award — ask your employer to show you the terms in writing.
Is it free? Do I need to sign up?
It's free and you don't need an account: fill it in and download. With a free account you can save a copy to your Layers and come back to it later.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
A calculation under the Payment of Gratuity Act and a letter template, not legal advice. Amounts are before tax.