Employer PF and ESI Cost Calculator per Employee
A factory owner who hires at Rs 30,000 gross pays more than Rs 30,000 to employ that person. This calculator adds employer PF, admin charge, EDLI and ESI and shows what the employee actually receives, including the step at the ESI wage ceiling.
Your numbers
Your results
Rates and wage ceilings are as commonly applied at the time of writing. Check current EPFO and ESIC rules and any state specific charges.
Employer cost and take-home vs gross
Sweeps Monthly gross salary from 10000 to 40000, holding your other inputs fixed.
Payroll cross-check
Want PF and ESI mismatches flagged from your payroll data? Request an optional expert review.
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How to use it
Enter the monthly gross, and basic plus dearness allowance. Choose whether PF is capped at the Rs 15,000 wage ceiling or based on actual basic. The tool returns employee and employer PF, the 0.5% admin and EDLI charges, ESI where gross is within Rs 21,000, and the monthly cost to the employer. Use it when quoting a job, pricing contract labour or checking a payroll run produced by Tally Prime, Zoho Payroll or Busy.
Rules behind the numbers
Employee and employer PF are each 12% of PF wage. Of the employer share, 8.33% of wage up to Rs 15,000 goes to the pension scheme (EPS) and the balance to EPF. Admin charge is 0.5% of PF wage and EDLI is 0.5% of wage up to Rs 15,000. ESI applies when monthly gross is Rs 21,000 or less: 0.75% employee and 3.25% employer. At Rs 21,001 coverage stops, so employer cost drops although gross rises, which the chart shows.
- ESI wages exclude certain items such as overtime in some definitions.
- Professional tax and income tax TDS are not in the take-home figure.
- Minimum admin charge rules can apply for small establishments.
Common mistakes
Payroll errors include computing PF on gross instead of basic, forgetting that the EPS part is limited to the Rs 15,000 ceiling, continuing ESI for the whole contribution period after wages cross the limit mid-period, and keeping all pay in allowances so PF wage looks small. Auditors and EPFO inspectors compare declared basic to the minimum wage, so design pay structures with that in mind.
Frequently Asked Questions
Why does cost fall when gross passes 21,000?
ESI coverage depends on monthly gross being Rs 21,000 or less. Above that the 3.25% employer ESI no longer applies, so total employer cost can drop slightly. The employee also loses ESI medical benefits.
Is employer PF part of CTC?
Employer PF, admin charge and EDLI are cost to the employer. Whether they are shown inside the quoted CTC depends on how the offer letter is structured. This tool shows them on top of gross.
Can PF be on actual basic?
Yes, an employer may contribute on actual wages above Rs 15,000 with the employee's consent, subject to current EPFO rules. Switch the PF basis to actual basic to see the effect.
Does it include gratuity or bonus?
No. Gratuity, statutory bonus, leave encashment and labour welfare fund are separate liabilities. Add them to a full cost model if you are pricing labour.
Netray can build a read-only payroll cross-check over your HR and accounting data to flag PF wage, ESI eligibility and ledger mismatches.
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