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HQ8T

Employee Cost Calculator

True employer cost with PF, ESI, gratuity and bonus.

₹
₹

PF and gratuity are calculated on this. Under the new wage codes, keep it at least 50% of gross.

% of basic

Statutory minimum is 8.33% for eligible employees

₹

₹200 in Maharashtra and Karnataka; ₹0 in many states

₹

Health insurance, meals, phone, etc.

Cost to company (monthly)
₹32,671
8.9% above gross
Cost to company (yearly)
₹3,92,052
₹3.92 Lakh
Employee take-home
₹28,000
Before income tax (TDS)
Employer pays (monthly)
Gross salary₹30,000
Employer PF (12%)on ₹15,000 PF wage₹1,800
EDLI + PF admin (1%)₹150
Employer ESI (3.25%)not applicable above ₹21,000 gross₹0
Gratuity provision (4.81%)15 days' basic per year of service₹721
Bonus₹0
Other benefits₹0
Total₹32,671
Employee receives (monthly)
Gross salary₹30,000
Employee PF (12%)− ₹1,800
Employee ESI (0.75%)₹-0
Professional tax− ₹200
Take-home₹28,000

PF: 12% each from employer and employee (EPF Act); ESI: 3.25% + 0.75% when gross is up to ₹21,000. Gratuity is shown as a monthly provision (15/26 of a month’s basic per year). Check your state’s professional tax and minimum wage rules.

How to use

  1. 1Enter the monthly gross salary and basic + DA.
  2. 2Set bonus, professional tax and any other employer costs.
  3. 3Choose whether PF is capped at ₹15,000 and if ESI applies.
  4. 4See the cost to company, employee take-home and full break-up.

Frequently asked questions

What does an employee really cost?

Gross salary plus employer contributions: 12% PF, about 1% EDLI and PF admin charges, 3.25% ESI (if gross is up to ₹21,000), a gratuity provision of about 4.81% of basic, and any bonus or benefits.

Why cap PF at ₹15,000?

PF is compulsory only on basic + DA up to ₹15,000 a month. Many employers contribute on that ceiling (₹1,800) instead of on the full basic.

When does ESI apply?

For employees earning gross wages up to ₹21,000 a month in establishments covered by ESI. The employer pays 3.25% and the employee 0.75%.

Why is gratuity included every month?

Gratuity of 15 days' basic per year of service becomes payable after 5 years. Setting aside 4.81% of basic each month spreads that cost.

Is income tax included?

No. Take-home here is before TDS, which depends on the employee's tax regime and investments.

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