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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
From a monthly gross salary to an annual cost to company: employer provident fund, employer ESI where it applies, a gratuity provision and any annual bonus.
Cost to company is not a statutory term. It is the convention of quoting a salary as everything the employer spends on the employee in a year, which is why two offers with the same CTC can mean different take-home pay.
This calculator builds a CTC upward from a monthly gross using the statutory contribution rates for provident fund and ESI, and optionally a gratuity provision on the Payment of Gratuity Act formula and an annual bonus you enter.
Enter your figures, then press Calculate
Your 5 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
CTC is the gross salary plus what the employer pays on top of it. Each addition is shown on its own line, so a CTC figure can be traced back to the salary it came from.
CTC = 12 × (Gross + Employer PF + EDLI + PF admin + Employer ESI + Gratuity provision) + Annual bonus
The monthly gross salary, basic plus allowances, before any deduction.
Twelve per cent of the PF wage, with the ₹15,000 ceiling applied if you choose it. The split between EPF and EPS does not change the total.
3.25% of gross when gross is within the ₹21,000 threshold; nothing above it.
Fifteen twenty-sixths of monthly basic per year of service, spread across twelve months, the amount an employer sets aside each month against the eventual liability.
Twelve months of the monthly cost plus any annual bonus or variable pay you enter.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Because CTC includes amounts the employer pays that never reach your account in the month, its own provident fund and ESI contributions, a gratuity provision and any variable pay, and your own deductions come off gross before you are paid. The salary calculator shows the take-home side.
No. Including a gratuity provision in a quoted CTC is a common practice rather than a rule, which is why the calculator lets you switch it off.
It can. Provident fund and gratuity are both computed on basic, so a larger basic raises the employer's contributions, unless the EPF wage ceiling caps the provident fund side.
No. Cost to company is a convention for quoting a salary as everything the employer spends on the employee in a year, which is why two offers with the same CTC can mean different take-home pay.
Insurance premiums, meal cards and reimbursements, which some employers add, are not modelled. EDLI and EPF admin charges payable by the employer are included.
Fifteen twenty-sixths of monthly basic per year of service, spread across twelve months. It is an accounting convention; gratuity itself is only payable after five years of continuous service.
Only where monthly gross is within the ₹21,000 threshold, in which case 3.25% of gross is added. Above the threshold, nothing is added for ESI.
No. The employer's 12% provident fund contribution is added in full, and how it divides between EPF and EPS does not change the total.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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