Hiring Cost Calculator
Calculate the true total cost of a new hire including salary, statutory costs, recruitment fees, onboarding, and productivity ramp time.
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How this calculator works
The sticker price of a hire (salary) is just the start. Employer PF (12%), gratuity (4.81%), group health insurance, recruiter fees (8–15% of CTC), onboarding time, equipment, and a 2–4 month ramp before full productivity — the real cost of a new hire is typically 1.4–1.6× their annual salary in year one.
Total year-1 cost = Salary + Employer PF + Gratuity + Insurance + Recruitment + Onboarding + Equipment + Ramp cost (salary × ramp months × 50%)
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
1.4× salary is the rule of thumb
A ₹6L CTC hire costs approximately ₹8–9L in year one. Always budget for this full number when doing headcount planning.
Ramp time is often underestimated
Assuming someone is productive from day 1 is the most common hiring mistake. Add 2–3 months for most roles, 4–6 for senior hires.
Retention saves more than hiring
Replacing a ₹10L employee costs ₹6–12L in recruitment and lost productivity. Invest in retention first.
Frequently Asked Questions
A ₹6L CTC hire costs approximately ₹8–9L in year one. Always budget for this full number when doing headcount planning.
Assuming someone is productive from day 1 is the most common hiring mistake. Add 2–3 months for most roles, 4–6 for senior hires.
Replacing a ₹10L employee costs ₹6–12L in recruitment and lost productivity. Invest in retention first.