How agencies build a guard rate
A client pays for posts covered, not for guards employed. A post covered 24 hours on two 12-hour shifts needs two guards a day, but each guard is entitled to a weekly off, so the agency must roster relievers. Seven days of coverage divided by six working days per guard gives a reliever factor of about 1.167, which is why one 24-hour post on 12-hour shifts requires roughly 2.33 guards, and three such posts need seven. The calculator computes guards required from posts × shifts × reliever factor.
On top of the guard's monthly wage, the agency bears employer PF (12% plus EDLI and admin charges, around 13% of wages up to the ₹25,000 ceiling), employer ESI (3.25% of gross up to ₹21,000), statutory bonus (8.33%), and often provisions for gratuity, leave and uniforms. These are usually shown as separate recovery lines on the invoice. A service charge percentage covers supervision, training, insurance and margin. GST at 18% applies on the total; when a registered body corporate hires a non-body-corporate agency the reverse charge mechanism can shift GST liability to the client, so confirm the treatment with your accountant.
- Guards required = Posts × Shifts per day × Reliever factor (7 ÷ 6 ≈ 1.167 for one weekly off)
- Statutory loading = PF % + ESI % + Bonus % + other provisions % of wage
- Service charge is applied on wages plus statutory loading
- GST 18% on the invoice subtotal (check reverse charge applicability)
Why attendance-verified billing avoids disputes
Clients dispute invoices when billed man-days exceed what their gate register shows. Agencies that export site-wise, shift-wise attendance from GPS and selfie-verified check-ins and attach it to the invoice close the month faster and get paid sooner. The calculator gives the planned monthly bill; actual invoices should be reconciled against verified duties, with absent shifts and unfilled posts credited.