If you handle payroll every month, there is one important change you should know.

The Employees' Trust Fund (ETF) payment process is now moving to electronic payments for employers with 15 or more employees. This applies from the July 2026 contribution onwards.

Many businesses think this is only about paying online. Actually, there is a bit more to it. If your payroll records are not correct, paying online will not fix the mistakes.

What Has Changed?

If your company has 15 or more employees, you need to make your ETF payment electronically and submit the monthly return electronically.

The contribution for July 2026 should be completed on or before 31 August 2026.

So this is a good time to check whether your payroll process is really ready.

Why This Matters

Many companies still prepare payroll using Excel sheets or several different files.

It works most of the time. But sometimes one small mistake can create a problem.

A new employee may be missed. A resigned employee may still appear in the payroll. An allowance may be calculated wrongly.

If the payroll is wrong, the ETF contribution will also be wrong. That means extra work later to correct everything.

Is Your Payroll System Ready?

Before the month end, check a few simple things.

  • Employee details are up to date.
  • Salary changes are entered correctly.
  • Attendance and leave are completed.
  • ETF is calculated correctly.
  • Reports match the payroll figures.
  • Someone checks the payroll before payment.

These few checks can save many hours later. The same discipline helps with other statutory submissions too — see our guide on RAMIS submission and employee TIN requirements in Sri Lanka.

Don't Wait Until the Last Day

We have seen many companies rush payroll on the last day.

That is when most mistakes happen.

It is always better to finish payroll a few days early, review everything, then make the payment without pressure.

A proper payroll system makes this much easier.

How Can Payroll Software Help?

A good payroll system can automatically calculate salaries, leave, overtime and ETF contributions.

It also keeps employee records in one place. This means less manual work and fewer chances for mistakes. AccSoft Payroll is built for Sri Lankan businesses and works closely with AccSoft HR so employee data stays consistent across departments.

As more government payments become digital, having a proper payroll system will become even more important.

Final Thoughts

Going digital is a good step. It saves time and makes the payment process easier.

But remember, online payment is only one part of the process.

Accurate payroll is what really matters.

If your payroll is still handled manually or using many Excel files, this is probably the right time to review your system.

A little preparation now can save a lot of problems later. Need help with your payroll? Call AccSoft on 0777 554 225 or visit accsoft.lk to arrange a demonstration.

Frequently Asked Questions

Who needs to make ETF payments electronically?

Employers with 15 or more employees are required to make ETF payments and submit monthly returns electronically.

When does this start?

From the July 2026 ETF contribution. The payment should be made on or before 31 August 2026.

Can I still pay by cheque or cash?

For employers covered by the new requirement, electronic payment should be used.

Is paying online enough?

No. Your payroll records and ETF calculations should also be accurate before making the payment.

We use Excel for payroll. Is that okay?

It may work for small businesses, but as your business grows it becomes easier to make mistakes. A payroll system helps reduce manual work and improves accuracy.

How can AccSoft help?

AccSoft Payroll helps you manage employee records, salaries, leave, overtime and statutory calculations in one system, making monthly payroll much easier.