Budget Every Hire Accurately With a Cost to Company Calculator.

Introduction

You approve a ₹15 lakh offer, the candidate accepts, and finance later flags the real cost at nearly ₹16.8 lakh once PF, gratuity, insurance and bonus provisions are added. The number you signed off wasn’t the number you’re paying.

The salary you offer and the cost you carry are two different figures. A Cost to Company Calculator closes that gap in seconds by converting any offered package into true cost to company — so you budget with the right number every time.

What a Cost to Company Calculator does

Most salary tools start from CTC and calculate the employee’s take-home. A Cost to Company Calculator built for employers works the other way — it starts from the offered salary and adds every cost you incur to show your complete outlay.

That matters because your real cost includes components the employee never sees in their account: your PF contribution, gratuity provision, insurance premiums, and bonus accruals.

Why cost to company is higher than the salary you offer

Employer PF: 12% of basic, on top of the employee’s own 12%.
Gratuity: provisioned from day one at (basic × 15 × years) ÷ 26, even though it’s paid after 5 years.
Insurance & benefits: health cover, life cover and other perks are recurring costs.
Bonus / variable pay: provisioned at 100% for budgeting, regardless of eventual payout.

Together these typically add 12% to 25% on top of the headline figure.

Employer view vs employee view

Term	What it means
Cost to Company (employer)	All you spend — cash salary + employer PF + gratuity + insurance + bonus
Gross salary	Cash salary before employee deductions
In-hand salary	What the employee receives after PF, TDS and professional tax

Only the Cost to Company Calculator answers the question finance cares about: what does this hire really cost us per year?

How to use the HRTailor.AI Cost to Company Calculator

Enter the offered CTC or in-hand figure
Set your basic salary percentage
Add employer PF, gratuity, insurance and bonus assumptions
Get an instant, itemised cost-to-company breakup for your offer sheet or budget

Because the assumptions are editable, you can model two structures or two candidates side by side.

Conclusion

The salary you offer is only part of what a hire costs. A Cost to Company Calculator removes the guesswork and gives you the one number that matters for planning. For the employee-side view of the same package, see our companion guide, CTC Breakdown Explained.

HRTailor.AI has a free Cost to Company Calculator that converts any offered salary into a full cost-to-company breakup in seconds.

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