WebSoftOSCTC calculator for employers
CTC (cost to company) is everything an employer spends on an employee in a year: gross salary plus employer PF (~13% with EDLI and admin), employer ESI (3.25% if gross ≤ ₹21,000), gratuity provision (4.81% of basic), bonus and insurance. Use this to price a hire or to build an offer letter.
Result
| Gross salary / month | ₹40,000 |
|---|---|
| Employer PF incl. EDLI & admin (≈13%) | ₹1,950 |
| Employer ESI (3.25%) | ₹0 |
| Gratuity provision (4.81% of basic) | ₹962 |
| Annual bonus ÷ 12 | ₹0 |
| Insurance ÷ 12 | ₹0 |
| Cost to company / month | ₹42,912 |
| Cost to company / year | ₹5,14,944 |
| Employer cost over gross | 7.3% |
CTC formula
- CTC = Gross + Employer PF + EDLI & admin + Employer ESI + Gratuity provision + Bonus + Insurance.
- Gratuity provision = Basic × 15/26 ÷ 12 ≈ 4.81% of basic.
Frequently asked questions
Why is 4.81% used for gratuity?
Gratuity is 15 days of wages per year of service, calculated on 26 working days: 15/26 = 57.7% of one month's basic per year, or 4.81% of basic every month.
Is bonus part of CTC?
Statutory bonus and any annual variable pay are usually shown in CTC even though they are paid annually.
More free resources
Salary Calculator
Free in-hand salary calculator for India: convert annual CTC to monthly take-home after PF, ESI, professional tax and income tax (new regime FY 2025-26).
Use calculator → Free toolPF Calculator
Free PF calculator: compute employee 12% PF, employer EPF 3.67%, EPS 8.33% (₹15,000 ceiling), EDLI and admin charges per month and per year.
Use calculator → Free toolESI Calculator
Free ESI calculator: check ESI applicability (₹21,000 limit) and compute employee 0.75% and employer 3.25% ESIC contribution per month.
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