Calculate Recruitment Cost in India
India Salary Calculator 2026
From Bengaluru to Mumbai, Delhi NCR to Hyderabad, India's talent market spans 1.4 billion people and dozens of compliance obligations. Get the complete cost picture before you post your next role.
₹85,000
avg cost-per-hire (mid-level professional roles)
40 days
avg time to fill
8.33%–20%
Agency fee range
Start Hiring in India
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The Full Picture
What Makes Up India Recruitment Costs?
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Job Advertising
INR 400–50,000/post
India's top platforms are Naukri, LinkedIn, TimesJobs, and Shine. Naukri postings cost INR 400–1,650 per post, LinkedIn runs INR 8,000–50,000, and Resdex database subscriptions start at INR 55,000 per quarter.
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Agency Fees
8.33%–20% of annual CTC
Indian agency fees are 8.33% of annual CTC for mid-level roles, rising to 12–20% for senior positions and 25–33% for C-suite executive search placements across major metro markets.
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EPF Employer Contribution
12% of Annual Basic Salary
EPF is mandatory for establishments with 20+ employees. Employers contribute 12% of basic salary monthly, split between the Provident Fund and Employees' Pension Scheme, applying to all employees regardless of nationality.
ESIC Employer Contribution
3.25% of Gross (if monthly gross ≤ ₹21,000)
ESIC is mandatory for establishments with 10+ employees. Employers contribute 3.25% of gross wages for employees earning up to INR 21,000/month. Professional hires above this threshold are exempt from ESIC entirely.
Gratuity Accrual
(Annual Basic ÷ 26) × 15 per year of service
Gratuity accrues at 15 days' basic wages per completed year under the Payment of Gratuity Act. Fixed-term employees now vest after one year. Maximum total payout is capped at INR 2,000,000.
Background Verification
INR 400–3,500
Basic checks cost INR 400–1,200. Comprehensive packages including employment history, criminal records, and credit checks run INR 1,500–3,500. BGV is standard for professional hires and mandatory in BFSI and IT roles.
Relocation & Onboarding
INR 8,000–80,000+
Inter-city relocation costs INR 15,000–50,000, rising to INR 2,00,000+ for senior hires. Onboarding including equipment provisioning, IT access, and induction programmes adds INR 10,000–35,000 depending on seniority and city location.
Industry Data 2026
India Cost-Per-Hire Benchmarks
Whether you're hiring a fresher in Pune or a VP of Engineering in Bengaluru, cost-per-hire in India varies enormously by role, city tier, and whether you go direct or via an agency. Here's what the market looks like in 2026.
Role Type
Salary Range (INR/yr)
Avg Cost/Hire (INR)
Difficulty
Time to Fill
Software Engineer (3–6 yrs)
₹8L – ₹18L
₹95,000
38 days
High
Product Manager
₹15L – ₹35L
₹1,75,000
52 days
Very High
HR Manager
₹7L – ₹16L
₹72,000
40 days
Medium
Finance / CA
₹8L – ₹20L
₹88,000
42 days
Medium-High
Sales Manager
₹6L – ₹15L
₹65,000
35 days
Medium
Data Analyst
₹6L – ₹14L
₹78,000
38 days
High
VP / Senior Leadership
₹35L – ₹90L+
₹4,50,000+
60–80 days
Very High
Cost Reduction Guide
3 Ways to Reduce Your India Hiring Costs
1
Lead with Naukri for volume, LinkedIn for quality
Naukri dominates with 87M+ candidates at INR 400 per post, while LinkedIn delivers better-fit senior and tech candidates at a premium. Match your platform to role level to eliminate unnecessary overspend.
2
Negotiate agency fees below the 8.33% default
The 8.33% standard fee is a starting point. High-volume mandates and retainers create leverage to negotiate 6–7% flat fees. Lock in written fee schedules before any search begins to avoid disputes.
3
Use employee referrals to cut time-to-fill and agency dependency
Referred hires close in 25–30 days versus 38–50 days via job boards. Referral bonuses of INR 5,000–30,000 cost far less than agency fees, making structured referral programmes a high-ROI investment.
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India Recruitment Cost FAQs
Frequently asked questions about hiring costs across India's diverse labour market.
What is the standard recruitment agency fee in India?
The widely accepted industry standard is 8.33% of the candidate's annual CTC , exactly one month's salary , for mid-level and junior roles. This rate has remained stable for years. Senior roles (Director and above) attract 15–20%, while executive search and retained mandates for C-suite positions can run 25–33% of first-year compensation.
Is EPF mandatory for all employers in India?
EPF is mandatory for all private sector establishments employing 20 or more employees, governed by the EPF Act, 1952. The employer contributes 12% of each employee's basic salary monthly. Establishments with fewer than 20 employees can register voluntarily, and once registered, they cannot de-register even if headcount later falls below the threshold.
Which employees are covered under ESIC in India?
ESIC applies to employees whose gross monthly salary is ₹21,000 or below (₹25,000 for employees with disabilities), in establishments with 10+ employees. Most professional hires above this threshold are excluded entirely. The employer's contribution is 3.25% of gross wages , but with the ₹21,000 ceiling, the maximum possible employer ESIC cost is approximately ₹8,190 per year per employee.
How does gratuity work for new hires in India?
Gratuity accrues at 15 days' basic wages per completed year of service under the Payment of Gratuity Act, 1972. The formula is: (Annual Basic ÷ 26) × 15 × years of service. Under the Code on Social Security 2020, which became effective in November 2025, fixed-term employees are now eligible after just one year instead of five. The statutory maximum payout is capped at ₹20,00,000 for private sector employees.
From Cost to Candidates in One Click
Learn how leading companies across India are cutting cost-per-hire by up to 40% with smarter sourcing, automated screening, and real-time compliance tracking , all in one platform.
