Employee Cost Calculator – True Cost of Hiring
Beyond salary, employees cost you statutory contributions, gratuity accrual, insurance, infra and recruitment. Get the real number.
What makes up the true cost?
PF (12% employer), ESI (3.25% employer if salary ≤ ₹21k), gratuity accrual (4.81% of Basic), bonus accrual (8.33%).
Job board fees, agency commission (8–15% of CTC), internal recruiter time, assessment tools.
Laptop, software licences, training programs, mentor time for first 3 months.
Workstation, office space, internet, utilities — typically ₹3,000–₹8,000 per month.
Group health insurance, term life, snacks, team events, wellness programs.
New hires take 3–6 months to reach full productivity. Factor this opportunity cost.
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Frequently asked questions
Why is true cost higher than CTC?+
CTC usually excludes gratuity accrual, recruitment cost, insurance, infra and L&D — which collectively add 15–30% to the salary.
How do I budget for headcount?+
Use this tool's annual cost figure, multiply by planned hires, and add 10% buffer for attrition replacement.
Is ESI applicable to all employees?+
Only employees earning ≤ ₹21,000/month (₹25,000 for persons with disability). Above that, only group health insurance applies.
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