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Country comparison

Spain or India: which costs the employer more

Spain costs the employer more: 47.3% on top of the salary, against 6.1% in India.

Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.

Employer cost on a mid-level salary in each country's own currency. The percentage is what the employer adds to the gross salary.
SpainIndia
Salary used€60,000₹1,800,000
Statutory contributions€18,390₹23,400
Mandatory extra pay2 months0 months
Total employer cost€88,390₹1,909,980
Added on top of the salary47.3%6.1%
Statutory paid leave30 days15 days
Public holidays143
Minimum employer notice2.14 weeks4 weeks

Where the difference actually comes from

Spain: All general-scheme employer contributions share one monthly ceiling of 5,101.20 euro, shown here annualised, so employer cost above that level is zero.

India: The EPF wage ceiling is 15,000 rupees a month. Contributions above it are optional for the employer, which is why the marginal rate on a senior salary is effectively zero.

The formula behind both columns

total employer cost = gross salary + sum over each statutory contribution of rate x max(0, min(salary, ceiling) - band floor) (zero if the contribution applies only below a wage the salary exceeds) + gross salary x (mandatory extra months / 12) + gross salary x mandatory severance accrual rate

Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.

Related

Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.

Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.

Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.

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