Employer cost is everything a company pays for an employee — not just the gross salary. On top of basic + allowances + overtime, the employer pays 12% EPF and 3% ETF into the employee's funds (EPF Act No. 15 of 1958, ETF Act No. 46 of 1980). The EPF/ETF base is the basic salary plus EPF-able allowances; overtime and bonuses are paid without EPF/ETF.

So a Rs 150,000 salary really costs Rs 172,500 — 15% more than the headline figure. That gap matters for hiring budgets, quotations and comparing offers.

Overtime is entered in hours and paid at basic ÷ 240 (or ÷ 200, or working-days × 8 hours). At Rs 150,000 on the 240 basis, each overtime hour costs Rs 625; 40 hours add Rs 25,000 — all without EPF/ETF.

The tool also scales to teams: pick 1, 3, 5, 10, 15, 20, 50, 100 employees or a custom headcount and it multiplies the per-employee cost, so a 10-person team at this salary costs Rs 1,725,000 per month.

Budgeting: the real cost of a hire is gross + 15%. Comparing job offers: an offer with a higher gross but no EPF (rare) is not what it seems. Planning: when the minimum wage rises, the employer's cost rises by the statutory rate on top of the wage itself.