1. Introduction
India offers access to a massive talent pool across IT, engineering, customer service, and finance. While salary levels are attractive, employers must navigate Provident Fund rules, bonus obligations, and compliance with labor codes. This guide explains the cost of hiring full-time employees in India.
2. Average Gross Monthly Salaries
Common salary ranges by role:
- Admin roles: INR 15,000 – 30,000
- Mid-level professionals: INR 35,000 – 70,000
- IT/Engineering: INR 60,000 – 150,000
- Executives: INR 200,000+
Minimum wage varies by state, skill level, and sector (e.g., INR 10,000–15,000/month in major cities).
3. Statutory Contributions and Employer Taxes
Employers are required to contribute:
- Provident Fund (EPF): 12%
- Employee State Insurance (ESI): 3.25% (if applicable)
- Bonus Act: 8.33% (subject to salary cap)
- Gratuity: 4.81% (applicable after 5 years)
The total statutory burden is approx. 20–22% of gross salary.
4. Other Mandatory Costs
- Annual Leave: 12–21 days, depending on state laws
- Public Holidays: 10–15 days (national + state-specific)
- Maternity Leave: 26 weeks paid (subject to eligibility)
- Paternity Leave: No national law, but many offer 7–15 days
- Sick Leave: Varies by state (commonly 12 days/year)
5. Optional & Market-Driven Benefits
Employers commonly provide:
- Health insurance (group Mediclaim)
- Performance bonuses and stock options
- Transport or meal subsidies
- Hybrid work stipends
6. Hidden & Overlooked Costs
- Bonus and gratuity payments at exit
- State-specific leave carryovers
- Labor inspections (especially in IT/ITES SEZs)
- Contractor misclassification issues
7. Advisory Notes for Employers
Stay compliant with India’s 4 new labor codes (ongoing implementation). Contracts must specify role, wage structure, and bonus terms clearly. Ensure accurate payroll filings to avoid penalties.
8. How AYP Helps You Manage Cost Efficiently
AYP supports full compliance with India’s EPF, ESI, and labor code requirements. We manage local payroll, benefits, and record-keeping to reduce your compliance burden.
9. Contact Us
Hiring in India? Talk to AYP to handle employment and costs with full compliance
