Methodology and statutory rates
Every calculator reads the same rates and applies the same rules. This page lists them, so you can check the work.
What the calculators do
The CTC calculator searches for the highest whole-rupee gross whose total employer cost does not exceed your target. The in-hand calculator searches for the gross whose take-home equals your target. The quote checker takes the vendor's figures as given and audits them. All three use the same cost rules.
The rules
- Basic + DA is the higher of the notified minimum wage and 50% of gross, rounded up to the rupee. This is the lowest legal base for PF, gratuity and bonus.
- Wages for PF, gratuity and bonus are the higher of Basic + DA and 50% of gross (Code on Wages, 2019).
- PF is charged on wages up to the PF ceiling, for both employee and employer.
- ESIC is worked on wages as the Code on Social Security defines them: Basic + DA plus any allowances above 50% of pay (from 21 November 2025). It applies when that base is at or under the ESIC ceiling, and each amount is rounded up to the rupee.
- Professional tax comes from the state slab for the gross and gender. Labour welfare fund is charged in the months the state specifies.
- Leave with wages is gross × earned leave days ÷ 312. Holiday cover is gross ÷ 26 × holidays ÷ 12.
- HRA is optional, except a minimum of 5% of Basic + DA in Maharashtra and West Bengal.
- Overtime is paid at twice the ordinary hourly rate, taken as gross ÷ 30 ÷ 8, with a 4.75% markup when charged to the client.
Statutory rates used
| Parameter | Value | Note |
|---|---|---|
| Employee EPF | 12% | 12% of Basic + DA, on wages up to the PF ceiling (max ₹3,000 at ₹25,000) |
| Employer EPF + EPS | 12% | 12% of Basic + DA (EPF 3.67% + EPS 8.33%), on wages up to the PF ceiling (max ₹3,000 at ₹25,000) |
| Employer EDLI + PF admin charges | 1% | EDLI 0.5% + admin 0.5% of PF wage — statutory, payable to EPFO monthly. Whether it sits in the rate is set under DEFAULT COSTING BASIS below |
| PF wage ceiling (₹/month) | ₹25,000 | Raised from ₹15,000 to ₹25,000 by S.O. 5109(E) dated 17-Sep-2026, effective 17-Sep-2026 (applies to PF, EPS and EDLI). Set back to 15,000 only for costing periods before that date |
| Employee ESIC | 0.75% | 0.75% of the ESIC base (see 'ESIC contribution base' below) |
| Employer ESIC | 3.25% | 3.25% of the ESIC base |
| ESIC wage ceiling (₹/month) | ₹21,000 | ESIC applies when the ESIC base ≤ this |
| ESIC contribution base (Code wages / Gross) | Code wages | From 21-Nov-2025 ESIC is calculated on 'wages' under Sec 2(88), Code on Social Security = Basic + DA + retaining allowance + allowances above 50% of pay (ESIC communication of 10-Dec-2025). Choose 'Gross' only for periods before 21-Nov-2025 |
| Statutory Bonus | 8.33% | 8.33% of Basic + DA when wages ≤ bonus ceiling |
| Bonus eligibility ceiling (₹/month) | ₹21,000 | Employees with wages up to this are eligible — Code on Wages Sec 26(1), notified 25-Aug-2026 w.e.f. 21-Nov-2025 |
| Bonus calculation ceiling (₹/month) | ₹7,000 | Bonus is worked on the higher of this or the minimum wage, not on actual wages if higher — Code on Wages Sec 26(2), notified 25-Aug-2026 w.e.f. 21-Nov-2025 |
| Gratuity | 4.81% | 4.81% of Basic + DA (actual liability reimbursed, if applicable) |
| Working days per year (LWW divisor) | 312 | LWW = Gross × Earned Leave days ÷ 312 (18 days = 5.77%) |
| Paid days per month (NFH divisor) | 26 | NFH = Gross ÷ 26 × holidays ÷ 12 |
| Default Earned Leave days (state not in chart) | 18 | Used when the state is missing from the leave chart |
| Default NFH days (state not in chart) | 10 | Used when the state is missing or has no specification |
| Labour Code: min. share of Basic + DA in gross | 50% | If allowances exceed 50% of gross, the excess counts as wages for EPF, gratuity and bonus |
| Minimum HRA (Maharashtra & West Bengal) | 5% | 5% of Basic + DA, checked only for MH and WB |
| OT: days divisor | 30 | Gross ÷ 30 ÷ 8 × 2 = OT hourly pay |
| OT: hours per day | 8 | |
| OT: wage multiplier | 2 | Overtime at twice the ordinary rate |
| OT: markup charged to client | 4.75% | Added on the OT rate paid to the employee |
What the monthly rate includes
By default the calculators price only what is payable every month: wages, employer PF and ESIC, and labour welfare fund. Gratuity, bonus, leave, holiday cover and EDLI are real costs that fall due later or are billed at actuals. You can tick any of them into the rate. The full-load CTC always includes all of them.
| Setting | Default | Note |
|---|---|---|
| Include EDLI + PF admin (1%) in monthly rate | No | Statutory and payable monthly to EPFO. 'No' (JP-style) = vendor absorbs it in the service charge or bills it at actuals — it does not go away |
| Include Gratuity (4.81%) in monthly rate | No | Payable only on exit after 5 years' continuous service (1 year for fixed-term staff under the Code on Social Security). 'No' = reimburse at actuals on full & final |
| Accrue Statutory Bonus (8.33%) monthly in rate | No | Bonus is an annual payment, due within 8 months of year-end. 'No' = reimburse once a year against proof of payment |
| Include Leave with Wages in monthly rate | No | Leave days are already paid inside the monthly salary; extra cost only for relievers or leave encashment. Set 'Yes' for 24x7 posts that need relievers |
| Include National & Festival Holidays in monthly rate | No | Holidays are paid inside the monthly salary; extra cost only when the post is manned that day (double wages / reliever). Set 'Yes' for 24x7 posts |
How reliable are the minimum wages
Minimum wages come from state notifications and from compliance trackers that cite them. Each state carries a status:
- Verified – current The latest notification found, issued in 2026.
- Verified – old notification The latest notification found, but it is old. No newer one was located.
- Derived / mapped – check The state notifies by designation, or a skill level was mapped. Read the source notes on the state page.
Last checked 7 October 2026. Several states that revise in October had not published when we checked. Where a state has no Highly Skilled category, the Skilled rate is used.
Limits
Minimum wages vary by zone, industry schedule and area inside a state. Each state page names the zone or schedule used. A different schedule or zone may apply to your site. These tools do not replace advice from a labour law professional.
PF, ESIC, professional tax and labour welfare fund rules change by notification. If you find a rate that is out of date, tell us.