What a full-time hire in India costs beyond salary
A salary is not the full cost of a full-time hire in India. PF, gratuity, ESI, time and notice add up. See what to count and how to compare options.
A full-time hire in India costs more than the salary on the offer letter. On top come employer contributions such as provident fund (PF), gratuity and, for lower pay bands, ESI, plus recruiting time, equipment, leave and notice periods. The exact amount depends on how the pay is structured, so ask your accountant for a cost-to-company figure before you compare it with any monthly price.
Why the salary is only the first number
When a founder says "a developer costs ₹X a month", X is usually the pay that reaches the employee. The cost to the company is a different figure. The gap matters most when you compare a full-time hire with a service that bills one fixed monthly price, because you are comparing two different kinds of number.
None of this means hiring full-time is a bad idea. For a role you need for years, with a lot of company knowledge, it is often right. The point is to count it honestly.
What sits on top of salary
| Cost | What it is | Why it moves |
|---|---|---|
| Provident fund (PF) | The employer's contribution toward the employee's retirement fund | Depends on the wage base and how pay is split |
| Gratuity | A payment for long service, calculated on wages | Rises when the wage base rises |
| ESI | Employer share of state insurance, for pay below a set ceiling | Applies to lower pay bands only |
| Bonus and leave | Statutory bonus where applicable, paid leave and its encashment | Linked to wages in some cases |
| Hiring | Job posts, recruiter time, interviews, and the weeks the seat stays empty | Longer for niche skills |
| Setup | Laptop, software licences, a desk or a co-working seat | One-off plus monthly |
| Notice and gaps | A notice period on exit, then the search starts again | Hard to predict |
Rates and ceilings for PF, gratuity and ESI are set by law and change, so check the current figure with your accountant or the official portals instead of relying on a blog, including this one.
What changed with the new labour codes
India's four labour codes came into force in late November 2025, according to HUB International's January 2026 bulletin. Two points from it matter to a small employer:
- A wider definition of wages. Where allowances exceed 50% of total pay, the excess is added back to wages. That larger wage base then feeds salary-linked costs such as gratuity and, depending on transition rules, PF.
- Gratuity for fixed-term staff. Fixed-term employees become eligible after one year of service instead of five.
The same bulletin expects higher PF, gratuity and ESI costs but does not put a number on them. Advisers also disagree on how fast each item changes, so treat any single percentage you read online with care and ask a payroll professional about your own pay structure.
A fair way to compare options
Ask for the same four things from every option, whether a full-time hire, a freelancer, an agency or a dedicated expert:
- The full monthly cost. Everything you will pay in a month, and anything charged separately.
- The minimum term and how to stop. Notice period, lock-in, pause options.
- Who employs the person. This decides who handles contracts, PF and TDS.
- What happens if it does not work out. How fast a replacement arrives, in writing.
Our dedicated expert guide to cost in India and the piece on hourly rate vs fixed monthly price apply the same checklist to those models. If you are weighing a provider against extra people on your own payroll, staff augmentation vs a dedicated expert explains the difference.
Where a dedicated expert fits
AnantaSutra places a vetted, dedicated expert inside your team for one fixed monthly price, from ₹20,000 to ₹60,000 a month depending on the expert's skills, experience and the work. There is no extra fee, no recruitment fee and no lock-in, and you can scale up or pause any time. You call us, we hand-pick and vet 2-3 experts for the role, you interview them and choose, and the expert is live in about 7 days. Details are on the dedicated experts page.
It suits a role that is needed now, may change in six months, or needs a specialist you cannot easily find. It is not the only right answer: a core leader you want for a decade is probably a full-time employee. If the work is about automation rather than a person, our AI automation service may fit better.
FAQ
Is the salary the same as the cost to company?
No. Cost to company adds employer contributions and benefits to the salary, and in practice also the cost of hiring and equipment. Ask for the cost-to-company figure when you budget.
Do the new labour codes make hiring more expensive?
Advisers expect salary-linked costs such as gratuity, ESI and PF to rise for many employers, mainly through a wider wage definition. The size depends on how pay is structured, and published sources give no single number.
Should a small company hire full-time or use a dedicated expert?
Hire full-time for a lasting, central role. Consider a dedicated expert when you need a specialist quickly, want to pause or scale, or want one monthly price to plan around.
How do I know the monthly price I am quoted is complete?
Ask what is charged on top, in writing, and whether any taxes apply. Our price has no extra fees today, and if GST is ever charged it will be shown as its own line.
Book a free consultation and tell us the role. We will come back with 2-3 vetted experts to choose from.
