02 Superannuation to Provident Fund: An Australian's Guide to Indian Payroll
You already understand employer-funded retirement, statutory loadings and pay-cycle discipline. Australian payroll trained you well for India. The concepts rhyme; the acronyms and percentages change. Here is the translation table.
🧾 Super becomes PF, almost exactly
Your superannuation guarantee instinct maps to India's provident fund: the employer contributes roughly 12% of eligible wages into a retirement account tracked by a portable number called a UAN. Alongside it sit ESI at 3.25% where the salary qualifies, and gratuity accruing at 4.81% toward a tenure-based payout. Those loadings are the Indian equivalent of your on-costs.
🤔 The concept with no Australian cousin: CTC
Indian offers are negotiated as cost-to-company, a single figure bundling gross salary and employer contributions. Candidates think in CTC; Australians think in base plus super. Benchmark offers as full CTC with every component visible, or you will overpay against a number you misread.
⏰ The calendar is stricter than the ATO's
PF and ESIC deposits fall due by the 15th of every month, TDS by the 7th. A late PF deposit collects 12% annual interest plus damages that can reach 25%. There are no extensions and no equivalent of a tax agent lodgement program.
03 AUD Budgets, INR Salaries: Costing an India Hire From Australia in 2026
The question every Australian CFO asks first: what does an India hire actually cost, all in, in our currency? The answer has three layers, and only one of them is the salary. Here is the AUD arithmetic.
💰 Layers one and two: salary plus statutory
Agree the CTC in rupees, benchmarked to the Bengaluru market. On top of gross wages sit the employer loadings: about 12% to provident fund, 3.25% to ESI where applicable, 4.81% accruing to gratuity. Both layers reach your invoice at their actual rupee value, converted to Australian dollars at the RBI reference rate, with no margin added to the rate.
💸 Layer three: the fee, and what is not in it
Our fee is flat: $149 USD per employee per month, dropping to $129 beyond 20 people. No setup charge, no exit charge, no percentage of salary. Beware percentage-based pricing: a fee that scales with pay quietly punishes you for hiring seniors.
🤔 What it buys against a Sydney hire
A senior engineer in Sydney costs what it costs, plus super, payroll tax and months of searching in a tight market. The same capability in Bengaluru typically lands at a fraction of the loaded cost, with a screened shortlist in nine days. The saving is real. Just budget it honestly: FX moves, appraisal cycles run yearly, and good people get raises.
⭐ The verdict
Three visible layers, one AUD invoice, no FX spread. If a quote cannot be decomposed that way, something is hiding in it.