Employer Contribution Calculator

Calculate the employer’s statutory costs on top of an employee’s gross salary: PF, EPS, EDLI, admin charges, ESI and gratuity provision.

What is the Employer Contribution Calculator?

Employers pay several contributions in addition to salary. Together they determine the real cost to company.

How does it work?

Employer PF is 12% of wages (3.67% EPF + 8.33% EPS up to ₹1,250). EDLI is 0.5% of wages up to ₹15,000, EPF admin charges are 0.5%, ESI is 3.25% when gross is ₹21,000 or less, and gratuity is commonly provided at 4.81% of basic.

Formula

Employer cost = PF + EDLI + Admin + ESI + Gratuity provision

Example

For ₹40,000 gross and ₹20,000 basic (PF capped): EPF ₹550, EPS ₹1,250, EDLI + admin ₹150, gratuity ₹962 — about ₹2,912 a month over gross.

Frequently asked questions

Why is gratuity 4.81%?

15/26 of a month’s salary per year of service equals 57.7% of monthly basic a year, which is 4.81% of annual basic.

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