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Partial: some charges not included, see notes
Mandatory employer contributions in India
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Provident fund (EPF + EPS) on PF wages up to the INR 15,000 ceiling | 12.0% | 15,000 INR/month |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 236,000 INR | 21,600 INR | 9.2% | 257,600 INR | $2,956 |
| 472,000 INR | 21,600 INR | 4.6% | 493,600 INR | $5,663 |
| 944,000 INR | 21,600 INR | 2.3% | 965,600 INR | $11,079 |
The examples use 1×, 2× and 4× India’s 2025 GDP per person in local currency (236,000 INR, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 472,000 INR a year, the employer adds about 21,600 INR (4.6%) in mandatory contributions, for a total of 493,600 INR, about $5,663 at the 2025 average exchange rate. Because some contributions stop at a ceiling, the effective rate falls from 9.2% at the lowest example salary to 2.3% at the highest, so senior hires cost proportionally less in on-costs.
What is not included
- PF is due on basic wages, not total pay. This shows the common ceiling-based contribution (INR 1,800 a month). Many employers pay 12% of the full basic salary instead. Employees’ State Insurance (for wages up to INR 21,000/month) and gratuity are not included. PF is mandatory for establishments with 20 or more staff.
How to budget a hire in India
- Start from the gross salary you plan to offer in INR.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in India (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare India with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: India, other taxes, last reviewed 12 May 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in India?
On a salary of 472,000 INR, mandatory employer contributions add about 4.6%, for a total of roughly 493,600 INR a year before benefits (PwC, reviewed 12 May 2026).
What are employer social security contributions in India?
Provident fund (EPF + EPS) on PF wages up to the INR 15,000 ceiling 12.0%.
Is the India data verified?
Partly. The rates shown are cited, but some employer charges are not included; they are listed under "What is not included".