India Hiring Cost Index
See the indicative salary a role commands in each major Indian city. The full report gives the min–median–max range, the monthly cost, and your fully-loaded employer cost.
Statutory rates verified by the TMS compliance team · 2026-07-06Indicative median annual CTC
The median is only the middle of the range
You are seeing the median. The full report gives the full salary range, the monthly figure, and the fully-loaded cost of employing this role.
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The Real Cost of Hiring an Employee in India (2026)
A practical cost reference for foreign companies expanding into India and for Indian employers structuring 2026 salaries — covering statutory employer costs, the new Labour-Code wage rules, salary benchmarks by city, and the cost of running your own entity versus an Employer of Record (EOR).
1. Employer statutory cost on top of gross salary
These are the mandatory employer contributions above an employee’s gross pay (2026). Professional Tax and Labour Welfare Fund vary by state — check the state-wise rates on Simpliance.
| Component | Who pays | Rate (2026) | Basis / ceiling |
|---|---|---|---|
| Provident Fund (EPF) | Employer | 12% | of PF wages; statutory ceiling ₹15,000/mo (8.33% to EPS pension + 3.67% to EPF) |
| EPF — employee share | Employee | 12% | deducted from employee |
| EDLI + PF admin | Employer | ~1% | EDLI 0.5% + admin 0.5% |
| ESIC | Employer | 3.25% | where gross ≤ ₹21,000/mo (employee adds 0.75%) |
| Gratuity accrual | Employer | ~4.81% | of basic; payable after 5 years (15/26 × last basic+DA × years) |
| Statutory bonus | Employer | 8.33–20% | eligibility up to ₹21,000/mo (Payment of Bonus Act) |
Net effect: budget roughly 15–25% over gross for statutory employer cost, varying by salary band and state.
2. The 2026 wage-code change every employer must price in
3. Own entity vs Employer of Record (EOR)
| Set up your own entity | EOR (e.g. TMS) | |
|---|---|---|
| Time to first hire | 4–6 months | 24–48 hours |
| Upfront setup | Incorporation, GST, PF/ESI registration, bank, compliance | None |
| Ongoing | In-house payroll + compliance team, audits, filings | Bundled in the EOR fee |
| Compliance risk | Carried by you | Carried by the EOR (TMS: compliance-first since 2006) |
| Best when | 20+ long-term headcount, permanent India base | Testing the market, <20 hires, speed-critical, GCC ramp-up |
New to India? Read our step-by-step guide on how to set up a company in India — registration, real costs, and when an EOR is the faster route.
4. Indicative salary benchmarks by city (2026)
Approximate monthly gross for common mid-level roles. Figures are indicative 2026 estimates for budgeting only — actual offers vary by experience, skills and company.
| Role | Bengaluru | Mumbai | Pune | Hyderabad | Delhi NCR |
|---|---|---|---|---|---|
| Software engineer (3–5 yr) | ₹90k–1.5L | ₹85k–1.4L | ₹80k–1.35L | ₹80k–1.4L | ₹85k–1.45L |
| Data analyst | ₹55k–95k | ₹55k–95k | ₹50k–88k | ₹50k–90k | ₹55k–92k |
| Accountant | ₹35k–60k | ₹38k–62k | ₹32k–55k | ₹32k–55k | ₹38k–62k |
| Customer support exec | ₹25k–42k | ₹26k–45k | ₹24k–40k | ₹24k–42k | ₹26k–44k |
| Operations manager | ₹80k–1.5L | ₹80k–1.5L | ₹70k–1.35L | ₹72k–1.38L | ₹80k–1.48L |
| HR executive | ₹35k–60k | ₹38k–62k | ₹33k–56k | ₹33k–56k | ₹38k–62k |
Frequently asked questions
Beyond gross salary, employers add roughly 15-25% in statutory contributions – mainly Provident Fund (12%), ESIC (3.25% where applicable), gratuity accrual (about 4.81%) and statutory bonus – so total cost is typically 1.15-1.25x gross, before entity and admin overheads.
Through an Employer of Record (EOR), a new hire can be live on compliant payroll in 24-48 hours. Setting up your own Indian entity typically takes 10-16 weeks.
India’s Labour Codes require basic plus dearness allowance to be at least 50% of total CTC. This raises the base on which PF and gratuity are calculated, increasing employer cost for allowance-heavy salary structures.
TMS becomes the legal employer — compliant payroll, full statutory cover, your first hire live in 24–48 hours. Compliance-first since 2006.
Get a costed quote → Employer of Record in IndiaGet a hiring proposal in 24 hours.
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