Free tools by Finaccle

Payroll Cost Calculator

Work out what an employee really costs you, with PF, ESI, professional tax, gratuity and bonus, and what they take home.

Basic + DA (₹ a month)
HRA (₹ a month)
Other allowances (₹ a month)
Number of employees
To get the total for a team.
State (for professional tax)
Your result
Fill in the details and press Calculate.
After the first calculation, results update automatically as you change any input.

Employer contributions

Employers pay 12% of basic pay and DA to PF, usually capped at a wage of ₹15,000, plus small EDLI and admin charges. If gross pay is ₹21,000 a month or less, employers also pay 3.25% to ESI and deduct 0.75% from the employee.

Gratuity and bonus

Gratuity is 15 days’ wages for each year of service, about 4.81% of basic pay a month, payable after five years (one year for fixed-term employees under the labour codes). Statutory bonus of at least 8.33% applies to employees earning up to ₹21,000 a month.

The 50% wage rule

Under the labour codes, if allowances exceed half of total pay, the excess is added back to wages for PF, gratuity and other benefits. Keep basic pay at least half of CTC to avoid surprises.

Professional tax

States such as Gujarat, Maharashtra, Karnataka and West Bengal charge professional tax, deducted from salary and paid by the employer. Delhi does not levy it.