Employer cost calculator: India FY2026-27
What an employee really costs in India: gross salary plus mandatory employer contributions. A ₹1,200,000 yearly salary costs about ₹1,252,260 (1.04× gross).
Employer cost by salary
Employer EPF/EPS 12%, EDLI, EPF admin charges and gratuity accrual (4.81% of basic).
| Gross per year | ₹600,000 | ₹1,200,000 | ₹2,400,000 | ₹5,000,000 |
|---|---|---|---|---|
| EPF + EPS | ₹21,600 | ₹21,600 | ₹21,600 | ₹21,600 |
| EDLI | ₹900 | ₹900 | ₹900 | ₹900 |
| EPF admin | ₹900 | ₹900 | ₹900 | ₹900 |
| Gratuity (accrual) | ₹14,430 | ₹28,860 | ₹57,720 | ₹120,250 |
| Total employer cost | ₹637,830 | ₹1,252,260 | ₹2,481,120 | ₹5,143,650 |
| Cost multiplier | 1.063× | 1.044× | 1.034× | 1.029× |
| Employee take-home | ₹578,400 | ₹1,178,400 | ₹2,085,900 | ₹3,878,600 |
Gratuity accrued at 4.81% of basic. ESI applies only to wages up to INR 21,000/month and is not included.
Employee side: India take-home pay calculator.
GET /v1/employer-cost?country=in&gross=… — free API key, 1,000 calls/month.Questions
How much does it cost to employ someone in India?
On top of gross pay, employers in India pay employer EPF/EPS 12%, EDLI, EPF admin charges and gratuity accrual (4.81% of basic). For a ₹1,200,000 yearly salary the total is about ₹1,252,260, or 1.04 times gross pay.
Does this include benefits or an EOR fee?
No. It covers statutory employer contributions and mandatory accruals only. Private health insurance, allowances, equipment and Employer of Record fees come on top.
Sources
Updated 2026-11-13. Estimates for planning only, not tax advice.