Why Hiring in India Looks Cheap on Paper—and Expensive in Reality
Why Hiring in India Looks Cheap on Paper—and Expensive in Reality For global founders and CFOs, India often enters the hiring conversation as a simple spreadsheet win. Lower salaries. Large talent pool. Faster scaling. On paper, it looks like a no-brainer. But founders who have actually built teams in India will tell you something very different—usually after 6 to 12 months: “We didn’t realise how expensive this would become.” Not because India is costly. But because most first-time hiring models underestimate what ‘employment cost’ really means . This is a reality-check post—for founders, CFOs, and operators—on why hiring in India looks cheap in theory, yet quietly compounds costs in practice. 1. Salary Is Only 60–70% of the Real Cost Most India hiring plans start and end with base salary comparisons. That’s the first trap. In reality, total employment cost includes: Statutory contributions (PF, ESI, gratuity) Payroll compliance and filings Leave liabilities and encashments Ann...