Employer of Record in India: what one employee really costs
India, Asia. One software engineer at $30,000 gross per year, priced through 9 providers on 2026-09-02 exchange rates. Change the salary and headcount below.
- Employer on-cost
- +5.6%
- statutory charges on top of gross
- All-in per month
- $2,840 – $3,340
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in India at $30,000 gross a year costs about $141 a month in statutory employer charges (+5.6%), plus an EOR fee of $199 to $699 per month depending on the provider: $2,840 to $3,340 all-in, before deposits, FX margins and add-ons. Prices checked 2 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to India
Price your own hire, line by line.
≈ INR 2,849,249 gross / year · INR at ECB reference rate, 2 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $2,500 | |
| EPF employer contribution (Employees' Provident Fund) capped | 3.67% | $6 |
| EPS employer contribution (Employees' Pension Scheme) capped | 8.33% | $13 |
| EDLI employer contribution (Employees' Deposit Linked Insurance) capped | 0.50% | $1 |
| EPF administrative charges (employer-borne) capped | 0.50% | $1 |
| ESIC employer contribution (Employees' State Insurance) n/a | — | — |
| Gratuity accrual (Payment of Gratuity Act, 1972 / Code on Social Security, 2020) | 4.81% | $120 |
| Employer on-cost | +5.6% | $141 |
| Cost of employment, before EOR fee | $2,641 |
$3,240/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $38,877
- Fee share
- 18.5%
Checked 2 Sept 2026
Get a Deel quote$3,340/ month · 1 employee
- Fee / mo
- $699
- Per year
- $40,077
- Fee share
- 20.9%
Checked 2 Sept 2026
Get a Remote quote$3,140/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $37,677
- Fee share
- 15.9%
Checked 2 Sept 2026
Get a Multiplier quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
9 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $2,840 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $2,840/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $2,960 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $2,960/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $3,040 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $3,040/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499$459 billed annually | $3,140 | Not stated on the pricing page | 150+ | 2 Sept 2026 | Get a quote from Multiplier· $3,140/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $3,140 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $3,140/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $3,240 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $3,240/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $3,340 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 2 Sept 2026 | Get a quote from Oyster· $3,340/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $3,340 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $3,340/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 2 Sept 2026 | Get a quote from Rippling |
Same salary and statutory charges in every row; only the fee segment changes.
What India adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Basic wage as a share of gross = 0.5.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| EPF employer contribution (Employees' Provident Fund)Applies to basic wage plus dearness allowance, capped at the statutory wage ceiling of Rs 15,000/month | 3.67% | Basic wage , capped at INR 180,000 / yr 3.67% is the residual of the 12% statutory employer EPF+EPS contribution after removing the 8.33% EPS share. EPFO's website states the 12% total and 8.33% EPS share. EPFO's official social channel states the 3.67% allocation explicitly, but an equivalent statement was not found on an EPFO web page when checked. The figure is therefore officially derived rather than quoted verbatim from the website. | Employees' Provident Fund Organisation2026-09-02 |
| EPS employer contribution (Employees' Pension Scheme)Diverted from the same 12% employer EPF contribution; capped at the Rs 15,000/month wage ceiling | 8.33% | Basic wage , capped at INR 180,000 / yr Confirmed verbatim on two EPFO pages: epfo.gov.in and pmvbry.epfindia.gov.in. | Employees' Provident Fund Organisation2026-09-02 |
| EDLI employer contribution (Employees' Deposit Linked Insurance)Applies to the same capped basic wage as EPF/EPS; premium paid entirely by the employer, no deduction from the employee | 0.50% | Basic wage , capped at INR 180,000 / yr EDLI administrative charges (separate from this 0.5% insurance premium) were reduced to nil with effect from 1 April 2017 per EPFO circular. | Employees' Provident Fund Organisation2026-09-02 |
| EPF administrative charges (employer-borne)Charged on the same capped basic wage; funds EPFO scheme administration, borne solely by the employer | 0.50% | Basic wage , capped at INR 180,000 / yr The rate has remained unchanged since 1 June 2018; it was 0.65% from 1 April 2017 and 0.85% before that. No official revision for 2025-2026 was found when checked. Payroll-compliance sites commonly cite a minimum monthly charge of Rs 500, but that minimum was not confirmed on an EPFO web page and is not modelled here. | Employees' Provident Fund Organisation2026-09-02 |
| ESIC employer contribution (Employees' State Insurance)Applies only when the employee's gross monthly wage is at or below Rs 21,000 (Rs 25,000/month for persons with disabilities) | 3.25% | Gross salary ; only when gross ≤ INR 252,000 / yr The employee's own 0.75% share is separate and not an employer cost. Employees with an average daily wage up to Rs 176 are exempt from their own contribution, but the employer's 3.25% share remains payable for them. | Employees' State Insurance Corporation2026-09-02 |
| Gratuity accrual (Payment of Gratuity Act, 1972 / Code on Social Security, 2020) | 4.81% | Added to the annual costDerived from 15 days of basic wages per completed year: (monthly basic / 26 days) x 15 days, equal to approximately 4.81% of annual basic pay. The percentage is calculated rather than stated verbatim on a government page. Gratuity is payable after five years of continuous service but is commonly accrued as an ongoing employer provision. Secondary sources commonly cite a Rs 20 lakh private-sector ceiling. A 2024 circular raised the ceiling to Rs 25 lakh for central government employees; no official confirmation was found that this increase extends to private-sector or EOR employees. | Ministry of Labour & Employment2026-09-02 |
| Statutory bonus (Payment of Bonus Act, 1965) not in total | — | The official minimum statutory bonus is 8.33% of wages and the maximum is 20%. It applies to employees earning up to Rs 21,000 per month in basic pay plus dearness allowance; this exact threshold was corroborated by secondary payroll-compliance sources but was not found verbatim on the official pages checked. The calculation uses a Rs 7,000 monthly wage ceiling or the applicable minimum wage if higher, as described in secondary coverage of the 2015 amendment. The item is excluded from this example because its USD 30,000 annual salary is above the eligibility threshold. | Ministry of Labour & Employment2026-09-02 |
| Employer on-cost at $30,000 | +5.6% | $1,689 a year, $141 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
For one to five employees, an EOR is generally faster and can be cheaper than setting up an entity in India. A private limited entity through the SPICe+ process becomes worth comparing when headcount is expected to grow substantially over several years or the business needs direct GST, import-export registration, and full payroll control. Incorporation timelines and costs vary and no single official source checked established a national benchmark, so this is qualitative decision guidance rather than a quoted threshold.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Papaya Global fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $5,988 | $1,689 |
| 3 | $7,164 | $17,964 | $5,068 |
| 5 | $11,940 | $29,940 | $8,447 |
| 10 | $23,880 | $59,880 | $16,894 |
| 20 | $47,760 | $119,760 | $33,788 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 15 days
- Public holidays
- 12
- 13th month
- Not mandatory
- Probation
- up to 6 months
- Notice
- 30 days minimum by law (Industrial Disputes Act); commonly 30-90 days in practice depending on seniority, especially in IT/tech roles
- Reviewed
- 2026-09-02
Get a quote for India from the providers that publish a price.
Totals for 1 hire at $30,000. Ask each provider about deposits, FX margins and mandatory add-ons for India: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much does an EOR cost to hire an employee in India?
- Published EOR fees run from $199 to $699 per employee per month on top of gross salary and India's statutory employer contributions. Those contributions are 12% EPF/EPS plus 0.5% EDLI and 0.5% administration charges, but only on the basic wage up to the statutory ceiling of Rs 15,000 a month, so for a $30,000 salary they come to about $21 a month; the gratuity accrual (about 4.81% of basic pay) is the larger line, and ESIC (3.25%) applies only when gross pay is at or below Rs 21,000 a month. All-in, one engineer at $30,000 costs about $2,840 to $3,340 a month through the providers that publish a price.
- Is EPF mandatory for employees in India?
- Employees earning up to the statutory wage ceiling of Rs 15,000/month in basic pay must be enrolled in the EPF scheme, with the employer contributing 12% of basic wage (3.67% EPF plus 8.33% EPS), plus 0.5% EDLI and 0.5% EPF administration charges, all computed on the same capped basic wage.
- When does ESIC apply to an employee in India?
- The employer owes a 3.25% ESIC contribution on gross wages only when the employee's gross monthly wage is at or below Rs 21,000 (or Rs 25,000/month for persons with disabilities); above that wage, no ESIC contribution is due.