First-Hire Compliance & Cost Calculator

Aggarwal Abhishek & Co. Startup Suite

Planning aid, not a payroll computation. EPF is mandatory only once an establishment reaches 20 employees (voluntary registration is allowed earlier); ESI is mandatory only once an establishment reaches 10 employees in most states, and only for employees drawing ₹21,000/month or less. This calculator lets you model costs either way, and flags which registrations are triggered by your actual headcount and state. Three recent changes worth knowing before your first hire: (1) the EPF wage ceiling for automatic mandatory coverage was raised from ₹15,000 to ₹25,000/month effective 17 September 2026 — more new hires now fall within mandatory coverage once your establishment crosses 20 employees; (2) the ESI Act, 1948 was repealed when the Code on Social Security, 2020 took effect on 21 November 2025, and ESI currently runs under a one-year transition provision expiring 20 November 2026 with no replacement scheme notified yet — this may change soon; (3) gratuity's 5-year eligibility rule below still applies to regular employees, but fixed-term employees now qualify for pro-rata gratuity after just 1 year under the Code on Social Security, 2020.

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Quick details before you begin

This tool is free to use. We just ask for a few contact details first, so our team can follow up if you'd like help setting up payroll compliance for your first hires. No salary data is ever sent to us — only the contact details below, and only if you choose to submit them.

Don't fill this out:

Full Name

Phone / WhatsApp

Business / Firm Name (optional)

We collect only the contact details above — never the salary figures you use inside the tool.

Employee & Business Details

Gross Monthly Salary offered (₹)

Basic Salary component (₹) — used for PF/gratuity

Total Employees (including this hire)

State (for Professional Tax applicability)

Employer PF calculated on (only matters if EPF is ticked below)

Provision monthly for future Gratuity liability (optional accounting practice — payable after 5 years' continuous service for regular employees, or after just 1 year, pro-rata, for fixed-term employees under the Code on Social Security, 2020)

What this calculator does not model

Statutory bonus (Payment of Bonus / Code on Wages — generally a minimum of 8.33% for establishments with 20+ employees, subject to the wage ceiling and eligibility rules).
Code on Wages "wages" definition — if Basic is below 50% of total remuneration, PF and gratuity may be computed on a higher base than the Basic you enter.
PF administrative-charge minimums per establishment, leave encashment, notice-period pay, insurance, and any state-specific levies.

These can add to the true cost — please have us confirm before you finalise an offer.

Result

Download a shareable image of your result. No data is uploaded; the image is drawn entirely in your browser.

Full Cost Breakdown

Registrations & Compliance Checklist for Hiring Employee #1

A general list based on your inputs above — nothing here is saved or sent anywhere.

Want a CA to check this for you?

Send us your figures and a Chartered Accountant will go through the result with you and tell you what to fix first.

Message us on WhatsApp Or write to us on the contact page

Disclaimer: This is a self-help planning aid, not a payroll computation. PF is approximated at ~13% of Basic (12% EPF/EPS + ~0.5% EDLI + ~0.5% admin charges — actual admin charges and the EPS wage ceiling are periodically revised by EPFO/the government). ESI, Professional Tax slabs, Shops & Establishment rules and Labour Welfare Fund applicability vary by state and are subject to change — please have us confirm your exact obligations before your first hire joins.