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India Employment Cost Calculator: What an Indian Hire Actually Costs You

Cost to company is not take-home pay, and provident fund is charged on basic salary rather than on the total. Enter a package below and watch it decompose.

Your inputs

₹

In rupees, per year.

The Labour Codes, now in force, require basic to be at least half of total remuneration. Move this to see what that change costs.

Component INR / month USD
Basic salary Drives provident fund and gratuity
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House rent allowance Exempt from tax where rent is genuinely paid
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Special allowance The balancing figure. Fully taxable
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Gross salary What appears on the payslip before deductions
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Employer provident fund Modelled on full basic. Only ₹25,000 of monthly wages is mandatory
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Gratuity provision Indicative monthly accrual. The provision actually booked is set by actuarial valuation
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Total cost to you Everything above. This is the CTC
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Monthly figures, illustrative.

Introductory offer: $59 per employee per month for your first two hires. From your third hire, our fee is 8% of what you pay each month for that person.

For this salary, from your third hire: our fee ₹8,696 (about $105), and the month’s total ₹1,08,696 (about $1,310). An estimate before any GST; your invoice uses each person’s agreed cost to company.

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What this tells you

The number you budget is not the number you offer.

The structure is the decision

Two packages with the same headline cost carry different employer contributions depending on how much of the package is basic pay. Move the slider and watch the total move. That decision is made before the offer goes out, not after.

The Labour Codes are in force

India has consolidated 29 central labour laws into four codes. They are in force and the Central Rules are notified, though some states have yet to notify their own. The consequential change is that basic must be at least half of total remuneration. Set the slider to 50% to see what that does to your cost.

What is not modelled here

Employees State Insurance, which applies only below ₹21,000 of monthly gross. Professional tax, a few hundred rupees a month and state-specific. Income tax, which is the employee’s own liability and depends on their declarations. For what the person receives, use the India take-home calculator at bridge91.com/tools/india-take-home-calculator.

Talk to us

Tell us who you want to hire.

Thirty minutes, no obligation, no pitch. Bring one role and the salary you have in mind. You will leave the call knowing what it costs, what it obliges you to, and how soon it can happen.

Or email contact@bridge91.com. Once you are a client, support is instant and 24/7, by WhatsApp, email and the web-based portal.