Employer costs in India

Statutory employer contributions add 20.06% on top of gross salary. On a reference salary of ₹1,200,000, the total annual cost to the employer is ₹1,440,720.

Employer burden

+20.1%

₹240,720 / yr in contributions

Total cost breakdown

Reference gross salary 1,200,000 INR.

Gross salary (reference)

₹1,200,000

Software engineer baseline

Employer contributions

₹240,720

20.06% of gross

Total employer cost

₹1,440,720

Salary + contributions

Largest single levy

12.00%

Employees' Provident Fund (EPF)

Employer contribution	Rate	Amount / yr	Source
Gross salary	—	₹1,200,000	—
Employees' Provident Fund (EPF)	12.00%	₹144,000	ILOSTAT
Gratuity (accrual est.)	4.81%	₹57,720	ILOSTAT
Employees' State Insurance (ESI)	3.25%	₹39,000	ILOSTAT
Total employer contributions	20.06%	₹240,720	—
Total cost to employer	—	₹1,440,720	—

Cost composition

Composition of total annual employer cost. Figures from the table below.

Data quality

Official sourcesGovernment & intergovernmental data only
Versioned recordsAppend-only, dated figures
Weekly refreshRe-validated on a weekly cadence
Public methodologyHow each cost is computed, documented

Read the methodology →

Cost calculator — India

Sources

Every figure on this page traces to one of the following.

ILOSTATCC BY 4.0

Data last reviewed June 1, 2026. Refreshed weekly via incremental static regeneration.

All employer costs in India