Break down an annual CTC into basic, HRA, deductions, and estimated monthly in-hand salary.
Open toolEmployee Cost Calculator
Work out the true cost of hiring someone - gross salary plus employer PF, ESI, gratuity, and bonus.
How to use it
Enter salary and employer benefit costs, then compare monthly and annual totals.
When it helps
Budget the employer cost beyond gross salary.
Worked example
A monthly gross salary of 50,000 represents 600,000 a year before employer additions.
Assumptions and privacy
Calculations run in your browser. Results are estimates based on your inputs and the model shown, with rounding differences possible. They do not replace a lender quote, payroll review, tax filing or professional advice. Confirm rates and rules for your situation before using the result.
About this calculator
The salary you offer isn't the full cost of an employee - employer PF, ESI (if applicable), gratuity accrual, and statutory bonus all add on top. This calculates the real monthly and annual cost to company from a gross salary figure.
Frequently asked questions
Why is CTC higher than the gross salary I'm offering?
CTC includes employer-side contributions that never show up in the employee's payslip as cash - employer PF (12% of Basic), ESI (3.25% of gross, if eligible), gratuity accrual (~4.81% of Basic), and statutory bonus.
When does ESI apply?
ESI applies when an employee's gross monthly wage is ₹21,000 or below. Above that threshold, neither employee nor employer contributes to ESI.
Is gratuity really paid every month?
No - gratuity is only paid out on exit (after 5+ years of service, per the Payment of Gratuity Act), but it's standard practice to accrue it monthly as a cost-to-company line item.
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