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Last updated: July 22, 2026
Employment Cost Calculator for India
Calculate your complete hiring costs for India employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Provident Fund (PF) | Employer: 12% | Employee's basic salary (up to ₹15,000/month) |
| Employee State Insurance (ESI) | Employer: 3.25% | Employee's gross salary (up to ₹21,000/month) |
| Professional Tax (PT) | Varies by state; maximum ₹2,500/year | Employee's gross salary/profession |
| Tax Deducted at Source (TDS) | Income tax slab rates | Employee's salary income |
Filing & Compliance
- Monthly Deposits: PF and ESI contributions by the 15th of the following month. TDS by the 7th of the following month (March TDS by April 30th).
- Quarterly TDS Returns (Form 24Q): Due by the last day of the month following the quarter-end (e.g., April-June quarter by July 31st), except for the last quarter (Jan-Mar) which is May 31st.
- Annual Forms: Issue Form 16 (TDS certificate) to employees before the tax filing deadline. File PF annual returns by April 30th.
Income Tax Brackets (New Tax Regime)
| Income Range (INR) | Tax Rate |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 to 8,00,000 | 5% |
| 8,00,001 to 12,00,000 | 10% |
| 12,00,001 to 16,00,000 | 15% |
| Above 24,00,000 | 30% |
Employee Contributions (New Tax Regime)
| Deduction Type | Rate | Cap |
|---|---|---|
| Standard Deduction | INR 75,000 | Fixed |
| Employer's NPS Contribution (Sec 80CCD(2)) | 14% of Salary (Basic + DA) | No specific cap on 80CCD(2), but combined employer contributions (NPS+PF+Superannuation) exceeding INR 7.5 lakh are taxable. |
Personal Allowances (New Tax Regime)
- Tax rebate under Section 87A for income up to INR 12 lakh (effectively zero tax).
- Transport allowance for specially-abled employees.
- Conveyance allowance for job-related travel.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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