Employee Cost Calculator
Free employee cost calculator for South Asia hiring
Salary is not the whole number. Every market obliges an employer to pay more on top. Pick a country, enter a salary, and see the full figure.
Tell us about the role
What you pay on top of salary. The type of employee decides which are required.
How to calculate employee cost in South Asia
Employment cost has two parts. The salary you agree, and the amounts the law adds on top.
The first part is easy. The second is where budgets break, because the rules differ by market and by the kind of contract you sign.
Start with gross, not net
Agree a gross figure with the employee. Gross is the full salary before any deduction.
Income tax and the employee’s own contributions come out of gross and reach the government, not you. They change what the employee takes home. They do not change what you spend.
So gross is the right starting number for an employer.
Work out basic salary
Salary in South Asia is structured as basic plus allowances. Basic is a portion of gross, commonly half.
This matters because several employer costs are calculated on basic rather than on gross. A rate of 8.33% means one thing on gross and something very different on basic.
In Bangladesh, basic is 50% of gross. So a gross salary of $1,000 has a basic of $500.
Add the employer costs
In Bangladesh there are three that apply to a permanent employee.
Festival bonus. Two months of basic salary a year, paid at two festivals. Spread across twelve months that is 16.667% of basic.
Gratuity. One month of basic a year, built up monthly and paid when the employee leaves. That is 8.333% of basic.
Annual leave. About fourteen days of gross salary a year, set aside for leave the employee does not take. That is 3.889% of gross.
Together those add 16.39% of gross for a permanent employee. On a gross salary of $1,000, the employee costs $1,163.89 a month.
Group insurance is a fourth item. It is not required, and Meteors does not supply the policy. The calculator shows it at 1.25% of gross so you can see the cost if you choose to provide it.
Check what the contract type changes
This is the part most people miss. Not every employer cost applies to every employee.
| Employer cost | Fixed term, 1 year or less | Fixed term, more than 1 year | Permanent |
|---|---|---|---|
| Festival bonus | Optional | Required | Required |
| Gratuity accrual | Optional | Optional | Required |
| Annual leave accrual | Optional | Required | Required |
| Group insurance | Optional | Optional | Optional |
| Required total | 0% of gross | 12.22% of gross | 16.39% of gross |
A short fixed term contract carries nothing on top of salary. A permanent employee carries the full set. Between the same salary and the same role, the contract type moves the cost by more than sixteen percent.
What the calculator includes
- Gross salary, at whatever figure you enter
- Basic salary, worked out behind the scenes as a percentage of gross
- Every employer cost that applies to the contract type you pick
- Optional items you switch on yourself
- A monthly and a yearly figure for each
What it does not include
- Income tax. The employee pays it out of salary. It is not an employer cost, so adding it would overstate what you spend.
- The employee’s own contributions. Same reasoning.
- Recruitment. Finding the person is a separate cost and a separate service.
- Equipment, software, and workspace. Real costs, but they vary by company rather than by market.
- Any provider fee. If you employ through an Employer of Record there is a monthly fee on top. Ours is on the pricing page.
Common questions
Straight answers on where the rates come from and what the figure covers.
Ask us directly →Yes. No sign-up, no email, no limit on how many times you run it.
From the statutory requirements in each market, maintained by our compliance team. Bangladesh figures are current. India and Pakistan are being added.
Because gross is what you agree with the employee. Basic is a portion of it, and the calculator works it out for you.
Because the law does. A fixed term contract of a year or less carries no required additions in Bangladesh. A permanent contract carries festival bonus, gratuity, and annual leave.
No. Income tax comes out of the employee’s salary, so it changes their take-home pay rather than your cost.
No. It appears as an optional line so you can see the cost if you choose to provide it. Meteors does not supply the policy.
Yes. The employer costs are the same whoever employs the person. Only a provider fee would differ, and that is not on this page.
It applies current statutory rates to the salary you enter, so it is a sound planning figure. A formal quote accounts for the individual, the contract, and anything specific to your situation.
Want the same number with a Meteors quote attached?
Tell us the role, the market, and the salary. We will send the full monthly cost with our fee included, broken down line by line.