Employment Cost Calculator for India
Calculate the total cost of employing someone in India, including taxes, benefits, and our management fee.
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.
