Article
4 min read
Employer Costs for an Employee in India (2026 Guide)
Employer of record
Global hiring
Author
Jemima Owen-Jones
Last Update
February 03, 2026
Quick answer: What is the total employer cost for a $100,000 salary in India?
For an employee earning $100,000 USD annually in India, employers can expect mandatory employer costs of approximately $5,016 USD per year, bringing total compensation costs to $105,016 USD.
Estimated total employer cost (India): ~5.0% on top of gross salary (example estimate).
Hiring in India can unlock incredible talent—whether you’re expanding into the market, building a remote team, or hiring your ideal candidate locally.
This guide provides a ballpark estimate of the mandatory employer costs of hiring an employee in India, using an example salary of $100,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in India, such as:
- Employees’ Deposit Linked Insurance (EDLI)
- Labour Welfare Fund
- EPF administrative fee
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid time off (vacation leave)
- Sick leave pay
- Private health insurance
- Employer-provided benefits or allowances
- Bonuses, equity, or commissions
- Equipment and onboarding expenses
- Costs tied to region/city-specific rules
Why employer costs vary in India (and globally)
Employer costs can differ depending on:
- Income thresholds and contribution caps
- Whether contributions apply at certain salary levels only
- Industry-specific requirements
- State/city variations (especially for welfare contributions)
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for India
Below is an estimated breakdown of mandatory employer costs for hiring an employee in India earning $100,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $100,000 USD
- Annual gross salary (approx.): ₹8,578,150 INR
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (INR) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Labour Welfare Fund | ₹411,751 | $4,800 | Statutory welfare contribution (may vary by location) |
| Provident Fund Office EPF Admin Fee | ₹17,156 | $200 | Administrative fee related to EPF |
| Total Estimated Employer Costs | ₹430,287 | $5,016 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | INR | USD |
|---|---|---|
| Gross Salary | ₹8,578,150 | $100,000 |
| Mandatory Employer Costs | ₹430,287 | $5,016 |
| Total Compensation Cost | ₹9,008,437 | $105,016 |
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FAQs
How much does an employee cost beyond salary in India?
Employer costs can add several percentage points on top of gross salary, depending on the employee’s structure, applicable contributions, and location.
Are employer costs the same across India?
Not always. Certain statutory items (like welfare-related contributions) can vary depending on state or region.
Do exchange rates affect employer cost estimates?
Yes. If you pay salary in a currency other than INR, the total cost may shift month to month due to FX changes.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
