Employment Cost Calculations for a Rs 80,000.00 Salary in Sri Lanka

Employing staff in Sri Lanka involves understanding the various costs associated with a salary. For a salary of Rs 80,000.00 per annum, there are several factors that contribute to the total employment cost. This article aims to provide a detailed breakdown of these costs, helping employers in Sri Lanka navigate through the financial responsibilities of hiring employees.

Rs 80,000.00 Salary in Sri Lanka - Payroll Cost Analysis

As an employer in Sri Lanka, it is clearly important to understand the gross salary you pay your employees as this figure tends to be used for salary comparison against other related jobs and positions when recruiting and retaining staff in Sri Lanka. A good employer also understands the value of understanding "net pay" or "take home pay" as it is commonly referred to. Visability of the take home pay your employees in Sri Lanka attain is important for understanding how they cope with the cost of living in Sri Lanka and ensuring that they have sufficient funds to engage their focus in work activities during employment hours, i.e. they are not preoccupied with financial concerns due to poor salary or considering leaving for better salary package oppertunities.

Note¹: Employer Social Security and Salary percentages shown as a percentage of total employment cost in Sri Lanka.

Note²: Employee Social Security, Personal Income Tax and Take Home Pay in Sri Lanka shown as a percentage of Gross Salary in Sri Lanka in 2024.

What is the take home pay on a Rs 80,000.00 salary in Sri Lanka?

For our Rs 80,000.00 salary in Sri Lanka, our employee would have an annual take home pay after payroll deductions and taxes of Rs 69,184.00 which is 86.48% of their gross pay, you can see a salary and payroll deductions example for Rs 80,000.00 here.

What are the employer costs on a Rs 80,000.00 salary in Sri Lanka?

As we showed on the snapshot table earlier, the cost on an employee on a Rs 80,000.00 annual salary in Sri Lanka is Rs 100,600.00, let's take a look at how this figure was calculated:

These calculations are based on the annual gross salary of Rs 80,000.00 and the Social Security Rates and Thresholds for Sri Lanka during the 2024 tax year which are displayed below.

Holistic Cost of Employee in Sri Lanka calculations

In this cost of employment analysis of a Rs 80,000.00 salary in Sri Lanka we have focused on the specific payroll elements of Basic Salary and Social Security but this is not a holistic employment cost calculation. The true cost of employing someone with a salary of Rs 80,000.00 per annum in Sri Lanka extends well beyond the gross salary. Employers must account for social security contributions, taxes, additional benefits, training costs, administrative expenses, and legal obligations. A comprehensive understanding of these elements is crucial for effective financial planning and management of human resources in Sri Lanka. This is particulalry true for the first year of employment when setup costs are higher.

1. Basic Salary

The base of the employment cost is the gross salary, which in this case is Rs 80,000.00 per annum. This amount is what the employee earns before any deductions or additional costs are considered.

2. Social Security Contributions

In Sri Lanka, employers are required to contribute to social security, which includes Employees Provident Fund (EPF), Employees Trust Fund (ETF), Social Security Family Allowance, Social Security (CNSS) Work Injury. In 2024, an employer contributions typically amount to around 25.75% of the gross salary where as employees typically contribue 8% to social security in Sri Lanka.

3. Additional Benefits and Bonuses

Many employers in Sri Lanka offer additional benefits such as bonuses, and other perks. These should be factored into the total employment cost as they can significantly increase the overall financial commitment.

4. Training and Development Costs

Investments in training and development are vital for keeping your employees in Sri Lanka skilled and motivated. These costs can vary but should be included in the total employment cost calculation.

5. Administrative and Overhead Costs

There are also administrative costs related to Sri Lanka payroll management and other HR functions. Overhead costs like workspace, equipment, and utilities attributed to the employee should also be considered.

6. Legal Obligations and Insurance

Employers in Sri Lanka are also responsible for certain legal obligations and insurances, which can add to the employment cost. These include liability insurance and adherence to labor laws and regulations.

Similar Employee Cost Examples in the 80k earning range

You may also find the following salary based employee cost examples for Sri Lanka useful as they were viewed by others who read the "Employment Cost Calculations for a Rs 80,000.00 Salary in Sri Lanka", alternatively you can create your own employee cost calculation here.