1. What is the Seventh Pay Commission?

The Seventh Pay Commission in Sri Lanka is the latest salary revision for government employees. It determines the salary structure, including basic pay, allowances, and deductions like EPF, ETF, and taxes.

2. How Salary Calculation Works

The salary is calculated using the following formula:

Where:

• Basic Pay - Determined by employee grade and step
• Allowances - Additional payments like transport, housing, etc.
• EPF - Employee Provident Fund (typically 8% of basic pay)
• ETF - Employee Trust Fund (typically 3% of basic pay)
• Tax - Income tax based on taxable income brackets

3. Understanding Salary Components

Basic Pay: The fundamental component determined by pay grade and seniority.
Allowances: Additional compensation for specific needs (transport, housing, etc.).
EPF: Retirement savings contribution (employee portion).
ETF: Government-managed employee benefit fund.
Tax: Progressive income tax based on annual earnings.

4. Using the Calculator

Instructions: Enter your basic pay (from grade table), all allowances, and applicable percentages for EPF (default 8%), ETF (default 3%), and tax. The calculator will compute your net take-home salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the current EPF percentage in Sri Lanka?
A: The standard EPF contribution is 8% of basic salary from the employee and 12% from the employer.

Q2: How is ETF different from EPF?
A: ETF (3%) is entirely employer-funded and managed by the government, while EPF (8% employee + 12% employer) is a retirement savings scheme.

Q3: Are allowances taxable?
A: Most allowances are taxable unless specifically exempted by law (like certain medical or transport allowances).

Q4: How often is salary paid to government employees?
A: Government employees in Sri Lanka typically receive monthly salaries.

Q5: Where can I find my basic pay grade information?
A: Basic pay scales are published by the Ministry of Public Administration and can be found in government circulars or HR departments.