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.
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.
