🇮🇳 Cost of employing in India
India's main employer on-costs are provident fund (EPF/EPS) and, for lower-paid employees, ESI. Gratuity is an end-of-service liability. Several levies vary by state.
Status key: Verified read on the official source page · Pending re-check from an official source, figure not yet re-read on the page · Coming soon not shown until verified. Every figure links to its source and shows the date we last checked it.
Employer on-costs and statutory contributions
| Item | Rate | Base / cap | Effective | Source · checked | Status |
|---|---|---|---|---|---|
| EPF employer contribution Paid by: employer Rate structure doc: source . PIB release states 12% employee / 12% employer, of which 8.33% to EPS and 3.67% to EPF. | 12% total: 3.67% to EPF + 8.33% to EPS | Statutory wage ceiling Rs 25,000/month (raised from Rs 15,000) | 2026-09-17 (new ceiling) | pib.gov.in ↗ 22 Oct 2026 | Verified |
| EDLI contribution Paid by: employer | 0.5% | Of wages up to ceiling | current | epfindia.gov.in ↗ 21 Oct 2026 | Pending re-check |
| EPF administrative charges Paid by: employer | 0.5% (minimum Rs 500/month) | Of wages up to ceiling | current | epfindia.gov.in ↗ 21 Oct 2026 | Pending re-check |
| ESI (ESIC) contribution Paid by: employer + employee Standard note: source | Employer 3.25%; employee 0.75% | Rates per esic.gov.in/contribution (w.e.f. 1 Jul 2019); employees earning up to Rs 176/day exempt from own share. Coverage wage ceiling Rs 21,000/month is from the ESIC standard note (not re-read) | current | esic.gov.in ↗ 22 Oct 2026 | Verified |
| Gratuity Paid by: employer labour.gov.in FAQ: 15 days' wages per completed year (or part >6 months), max currently Rs 20 lakh. Eligibility rules (incl. fixed-term) under Labour Codes need careful reading - gap. | 15 days' wages per completed year of service | Max Rs 20 lakh; Code on Social Security 2020 provisions commenced 2025-11-21 | 2025-11-21 | labour.gov.in ↗ 22 Oct 2026 | Verified |
Coming soon – not yet verified against an official source, so no figures are shown.
- Professional tax / LWF / statutory bonus
Leave and termination rules
| Rule | Detail | Source | Checked | Status |
|---|---|---|---|---|
| Gratuity | 15 days' wages per completed year, cap Rs 20 lakh (Code on Social Security from 2025-11-21) | labour.gov.in ↗ | 22 Oct 2026 | Verified |
Coming soon – not yet verified against an official source, so no figures are shown.
- Annual leave / notice
Estimate a total cost: use the calculator to add these on-costs and an EOR fee to a salary in India.
General information only – not legal or tax advice. Rules change and individual circumstances differ; confirm with the official source or a qualified adviser. See our disclaimer.