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Asia

India

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Employer of Record (EOR) in India

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
India Introduction

India is a country in south Asia with the 2nd-largest population in the world. It is bordered by Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. India is a multilingual and multi-ethnic country with a fast-growing major economy, hub for IT services, and biodiverse landscape.

Paid Leave and Statutory Leave

Parental Leave

Pregnant mothers are entitled to paid maternity leave for 26 weeks, paid at 100% of the salary. For any children born after the first 2, maternity leave decreases to 12 weeks. Government workers are entitled to 15 days of paid paternity leave, but there is no statutory paternity leave for other sectors.

Sick Leave

Employees in India who have been employed for at least 3 months can receive 15 days of paid sick leave each year as long as they provide medical proof within 48 hours of the first day of the leave. This leave is paid at 70% of the regular salary.

Paid Leave

India has 14 public holidays, and employees are also entitled to at least 15 days of paid time off each year (after completing 240 days at their company). Most employers offer some extra days of paid time off in their contracts.

Wage Requirements and Working Hours

The minimum wage varies with between each state, but can be no lower than INR 178 per day. The average workweek in India is 48 hours per week at 9 hours per day. Overtime work is regulated by employment contracts and usually paid at 200% of the regular rate.

Termination Process

Process

Notice periods are required for termination unless the employer can provide just cause for dismissal without notice — usually due to misconduct, disobedience, neglect of duties, or absence without permission.

Notice Period

The notice period in India is usually at least 30 days, but depends on the state the employee is in.

Severance Pay

Severance pay depends on the terms of the employment contract, the role of the employee, and the reason for termination — usually between 15 days and 6 months of wages.

Additional Information

The 13th month salary bonus is usually mandatory in India, paid as a portion of the annual salary before the end of the year. India introduced a new tax regime in recent years that eliminated many tax exemptions, but also offered lower tax rates. Employees can decide which system they want to follow.

OVERVIEW
Language(s):
English, Hindi, Regional Languages
Currency:
Indian Rupee (INR)
Capital City:
New Delhi
Population:
1.4 Billion
Cost of Living Rank:
135th
VAT (Valued Added Tax):
18%
Employer TaxES
16.75%
(estimated)

★  12% - Employee’s Provident Fund & Pension Scheme

★  4.75% - State Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in India

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in India get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in India are paid on time in Indian Rupee (INR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in India, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.