If you work in the private sector in Sri Lanka, part of every salary goes into two funds: the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF). Together they're the main retirement savings for most employees, so it's worth knowing how they grow.
Who pays what
| Fund | You pay | Your employer pays |
|---|---|---|
| EPF | 8% | 12% |
| ETF | Nothing | 3% |
The percentages apply to your total earnings: basic salary plus regular allowances such as cost-of-living allowance, but not usually overtime. On a salary of Rs. 100,000, Rs. 20,000 goes into EPF and Rs. 3,000 into ETF every month, and only Rs. 8,000 of that comes out of your pay.
How the money grows
EPF is managed by the Central Bank of Sri Lanka, and ETF by the ETF Board. Each year, interest is added to your balance at a rate declared from the fund's investment returns; for EPF this has been around 9–11% in recent years. Because interest is added to a growing balance, the effect compounds: the last ten years of a career often add more than the first twenty.
For example, someone aged 30 earning Rs. 120,000 a month, with Rs. 500,000 already in EPF, a 5% pay rise each year and 9% interest, could have roughly Rs. 49 million in EPF and ETF combined by age 55. The EPF & ETF calculator shows the year-by-year projection for your own numbers.
When you can withdraw
- EPF: at retirement age (55 for men, 50 for women), or earlier in some cases, such as leaving employment permanently, migrating, or permanent disability. Part of the balance can also be used for housing loans or medical needs under certain conditions.
- ETF: on retirement or leaving employment, and in some other cases set by the ETF Board.
Check that your contributions are paid
Employers sometimes deduct EPF from salaries but don't pay it in. Check your EPF and ETF statements at least once a year through the official member services, and raise any missing months with your employer or the Department of Labour.
Can you pay more?
Yes. You and your employer can agree to contribute more than the minimum, which grows your retirement savings faster. See your monthly take-home pay with different rates in the Sri Lanka salary calculator.
Rules on withdrawals change from time to time. Confirm details with the Central Bank EPF Department or the ETF Board.