Structuring Offer Letters & Hiring Budgets
See the exact monthly cash burn of a new hire after adding employer PF, gratuity provisioning, insurance, and software licenses.
Salary-to-Cost Calculator
What does hiring an employee truly cost your business? Go beyond basic salary to compute full Cost to Company (CTC) and total employer burden—factoring in Indian statutory employer contributions (EPF 12%, ESI 3.25%, Gratuity 4.81%, Statutory Bonus), group health insurance, laptop/SaaS seats, and paid leave to reveal your true cost per productive working hour.
₹
1. Statutory Employer Contributions
2. Operational & Workplace Overheads
True Employment Cost+45.1% Overhead
Annual Base Salary:₹4,80,000.00
Employer PF (12%):₹57,600.00
Gratuity Provision (~4.81%):₹23,076.92
Annual Bonus & Incentives:₹40,000.00
Health Insurance & Tools:₹36,000.00
Workplace & Admin Overheads:₹60,000.00
Monthly Employer Commitment:₹58,056.41
True Cost per Productive Hour:₹362.85 / hr
Based on 240 annual working days (1,920 hours)
Total Annual Cost to Company (CTC)₹6,96,676.92Base ₹4,80,000.00 + Extra Burden ₹2,16,676.92
How to Use the Salary-to-Cost Calculator
- 1
Enter the employee's monthly Basic + DA salary or gross monthly package in Indian Rupees (₹).
- 2
Toggle and configure statutory employer contributions: EPF (12%), ESI (3.25% if gross ≤ ₹21,000), and Gratuity provision (4.81%).
- 3
Add annual festival/performance bonus, group medical insurance, and monthly workspace/software overheads.
- 4
Review the Total Annual Cost, Monthly Employer Cash Outflow, Overhead Multiplier, and True Cost per Productive Hour.
Practical Use Cases
Calculating True Billable Hourly Cost of Staff
Find out how much one productive hour of a ₹60,000/month developer or designer actually costs the agency so client retainers are priced at a profit.
Comparing Full-Time Staff vs Contract Consultants
Compare the all-in statutory CTC of full-time payroll employees (including ESI, EPF, and bonus) against independent freelancer rates.
Salary-to-Cost Calculator Features
Indian Statutory Compliance
Includes official rules for Employee Provident Fund (EPF), ESI wage ceilings, and Payment of Gratuity Act.
True Hourly Rate Calculation
Computes the actual cost per productive working hour to help you price client projects accurately.
Visual Cost Breakdown
Interactive breakdown showing base salary vs. statutory perks vs. operational overheads.
100% Private & In-Browser
Calculations and document previews run entirely in your web browser. No financial data is ever stored on our servers.
Free for Indian Businesses
Created specifically for freelancers, consultants, shop owners, traders and MSMEs across India with zero subscription costs.
Mobile & Print Ready
Optimized for one-hand mobile input, instant copy actions, and clean A4 printable layouts.
Technical Specifications & Best Practices
- ✓Employer EPF is typically 12% of Basic + DA (many employers cap statutory PF contribution at the ₹15,000/month wage ceiling = ₹1,800/month).
- ✓Employer ESI (3.25% of gross wages) applies only to employees earning a gross monthly salary of ₹21,000 or less.
- ✓Gratuity accrues at 15 days of wages per completed year of service (`15 ÷ 26 ≈ 4.81%` of Basic + DA) and becomes payable after 5 years under the Payment of Gratuity Act.
- ✓Productive hourly cost divides total annual employer cost by realistic net working hours (accounting for weekends, public holidays, and paid leave).