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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
What a team of a given size actually costs each month once employer provident fund, pension and ESI contributions are added to the salary bill.
A salary budget built on gross alone understates the real monthly outlay, because the employer's statutory contributions sit on top of it rather than inside it.
This calculator applies the same statutory rules used for an individual salary to a whole team, so a headcount and an average salary produce the figure finance actually has to fund.
Enter your figures, then press Calculate
Your 4 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
Gross pay is where an employer's cost starts, not where it ends. This works upward from the salary to the total the company actually commits to.
Cost per employee = Gross + 12% PF + 0.5% EDLI + 0.5% admin + 3.25% ESI (where it applies)
The statutory rules are per employee, so the calculation runs once for the average and is then multiplied by headcount.
12% of the PF wage (8.33% of it, up to ₹1,250, goes to the pension scheme), plus EDLI at 0.5% of wages up to ₹15,000 and EPF admin charges at 0.5%.
3.25% of gross, where average gross is within the ₹21,000 threshold.
Because every input is an average, run the calculator once per salary band for a workforce with meaningfully different pay levels.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Because a salary budget expressed in gross omits the employer's own statutory contributions, which sit on top of gross rather than inside it. On a typical structure that is an additional twelve to sixteen per cent, and it is the single most common gap between an approved headcount budget and the actual monthly outlay.
No, and particularly not across the ESI threshold. An average that straddles ₹21,000 will apply ESI either to everyone or to nobody, when in reality it applies to part of the workforce. Run the calculator once per salary band and add the results.
No. Gratuity accrues per employee against their length of service rather than as a flat monthly percentage, so it cannot be represented by a headcount average. The gratuity calculator handles it per employee.
Gross salary plus the employer's statutory contributions: 12% provident fund on the PF base (including the 8.33% pension share) and 3.25% ESI where average gross is within the ₹21,000 threshold.
Because they come out of the employee's gross and reduce take-home rather than adding to the employer's cost.
No. Both are state subjects, so they are left out, as is gratuity provisioning, which depends on individual service length.
Employer provident fund is computed on basic, so a higher basic share raises the PF base and the employer's contribution, unless the ₹15,000 ceiling caps it.
Yes. It annualises the total monthly cost as twelve months at the current run rate.
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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