Global payroll in Sri Lanka

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Rivermate's global payroll solution helps companies hire remote employees in Sri Lanka . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Sri Lanka.

1. Grow your team in Sri Lanka with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Sri Lanka

If you are interested in hiring a remote team in Sri Lanka, or even just individual remote employees in Sri Lanka, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Sri Lanka payroll solutions. As a Sri Lanka payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Sri Lanka. We are confident Rivermate’s payroll solutions Sri Lanka will help you grow as a business—because now, you won’t have to worry about your payroll solutions Sri Lanka. We take care of everything payroll!

With Rivermate, you can run Sri Lanka payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Sri Lanka

Once you've determined the best Sri Lanka payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Sri Lanka

Companies in Sri Lanka must pay a corporate tax rate of 28%, but profits can be taxed at up to 40% depending on the type of business. Keep in mind that non-resident companies are only taxed on income earned in Sri Lanka. Employees will be taxed at a progressive income tax rate ranging from 6 to 18%. Because the country employs a Pay As You Earn (PAYE) system, taxes must be deducted directly from employees' paychecks.

Employers and employees are both required to contribute to two social security programs: the Employees' Provident Fund and the Employees' Trust Fund. Employees typically contribute 8%, while employers contribute 12%.

5. Payroll options for companies in Sri Lanka

Companies that wish to expand their operations globally have four different payroll options in Sri Lanka. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Sri Lanka. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Sri Lanka payroll outsourcing: Outsourcing your payroll to an Employer of Record in Sri Lanka, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Sri Lanka

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Sri Lanka can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Sri Lanka

Companies that have a business presence in Sri Lanka have different ways of managing payroll. However, most of the options you have for running payroll in Sri Lanka are either expensive or require establishing a subsidiary in Sri Lanka. The cheapest, most efficient, and most reliable payroll processing system in Sri Lanka is by outsourcing payroll to Employers of Record (EOR) in Sri Lanka. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Sri Lanka. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Sri Lanka. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Sri Lanka.

8. Entitlement and termination terms in Sri Lanka

Employment contracts may be cancelled by either the employer or the employee at the conclusion of the contract term (if the contract is for a specified term).

Employers have the authority to terminate an employee for misconduct or disciplinary reasons related to poor performance. Employers must tell employees of the reason for termination in writing within two days of the termination. Justifications for terminating an employee include extreme negligence, abusive or insubordinate behavior, fraud, theft or dishonesty, intoxication or other impairment, abandonment or chronic absenteeism.

Termination of an employee for any cause other than discipline, including redundancy, normally requires approval by the Labor Commissioner or the employee's consent. Written approval and consent are required.

Employees are entitled to redundancy pay if their employment is terminated due to the business's closure.

9. Compensation in Sri Lanka

The minimum wage is 10,000 Sri Lankan rupees per month.

10. Working hours and overtime in Sri Lanka

The standard work week is 45 hours long, with eight hours per day from Monday to Friday.

Male employees between the ages of 14 and 18 are generally prohibited from working at night, defined as between 6 p.m. and 6 a.m. Male employees between the ages of 16 and 18 are, however, permitted to work between the hours of 6 a.m. and 10 p.m. if employed in a hotel, restaurant, or place of entertainment.

Female employees, with a few exceptions, are also prohibited from working at night. Female employees who are at least 18 years old may work overnight in a residential hotel, between the hours of 6 p.m. and 10 p.m. if employed in a hotel or restaurant, or between the hours of 6 p.m. and 8 p.m. if employed in an office.

11. Employee benefits in Sri Lanka

Sri Lanka offers a free universal public healthcare system that is delivered via a network of healthcare facilities and hospitals. Citizens and workers are both covered by the universal healthcare system. Some private companies provide supplementary health insurance policies, although they are regarded perks rather than entitlements.

A probationary term, pay on yearly vacations, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay are all mandated by law. Social security payments are sometimes included in statutory benefits.

12. Why choose Rivermate as your global payroll provider in Sri Lanka

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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