Unlike an annual return or a beneficial ownership filing, EPF and ETF aren’t annual events — they’re a monthly obligation that starts the moment a company has its first employee, and they don’t pause for a quiet month, a slow quarter, or a director’s absence
The rates
- EPF (Employees’ Provident Fund): 12% employer contribution + 8% employee contribution, both calculated on total earnings
- ETF (Employees’ Trust Fund): 3% employer contribution
The employer is responsible for calculating, deducting, and remitting all of these — the employee’s share is deducted from salary, but it’s the company that has to ensure it’s paid across correctly and on time.
Where this goes wrong in practice
The rates themselves are simple. What causes problems is almost always process, not arithmetic:
- Late remittance in months with irregular payroll runs, bonuses, or mid-month starters and leavers
- Contributions calculated on base salary only, missing allowances that should be included
- New employees not registered with EPF/ETF promptly, so contributions start late relative to their actual start date
- No reconciliation between payroll records and what was actually remitted, so errors compound silently over several months
This is a monthly commitment, not a monthly reminder. Because EPF/ETF has no annual “deadline day” the way tax season does, it’s the compliance item most likely to be handled inconsistently once the person managing it is stretched across other priorities.
Why we bundle this with company secretarial work
For clients who already have us handling statutory registers and annual filings, keeping payroll compliance in the same place means one team is accountable for the full compliance picture — not a separate handoff every month.
Want your payroll compliance reviewed?
We’ll look at your last few months of EPF/ETF remittances and flag anything that needs correcting, free.
This article is general information based on publicly available regulatory sources as of July 2026, and isn’t legal advice. Beneficial ownership regulations are new and specific requirements can vary by company structure — confirm your obligations with the Registrar of Companies or a qualified company secretary before acting
Compliance. Continuity. Confidence.
Venture BPO · 35A Fairfield Gardens, Colombo 08, Sri Lanka · 074 161 1741
No responses yet