India

Employer of Record (EOR) in India

Only 199 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in India . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for India.

Employer of Record people
A coin
Currency
Indian Rupee
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Capital
New Delhi
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Region
Asia
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Language
Hindi, English
Hire remote employees
Population
1380004385
A pile of gold
GDP
$2.651 trillion
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GDP growth
0.0668
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Ease of doing business
71
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World GDP share
0.0328

1. Grow your team in India with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in India , particularly if you don't have established local relationships. You can hire employees in India effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

India, formally the Republic of India, is a South Asian nation. It is the world's seventh-largest nation in terms of land area, the second-most populous country, and the most populous democracy. It has land boundaries with Pakistan to the west, China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east. It is bounded by the Indian Ocean to the south, the Arabian Sea to the southwest, and the Bay of Bengal to the southeast. India sits near Sri Lanka and the Maldives in the Indian Ocean, and its Andaman and Nicobar Islands share a maritime border with Thailand, Myanmar, and Indonesia.

Modern people arrived in India from Africa no later than 55,000 years ago. Their lengthy habitation, which began in various types of seclusion as hunter-gatherers, has resulted in an area that is very varied, second only to Africa in terms of human genetic variety. Settled life first appeared on the subcontinent 9,000 years ago on the western edges of the Indus river basin, eventually maturing into the Indus Valley Civilisation of the third millennium BCE. By 1200 BCE, an early version of Sanskrit, an Indo-European language, had spread into India from the northwest, becoming the language of the Rigveda and documenting the birth of Hinduism in India. The Dravidian languages of India were displaced in the north and west. By 400 BCE, Hinduism had developed caste division and exclusion, while Buddhism and Jainism had evolved, establishing social hierarchies unrelated to heredity. The loose-knit Maurya and Gupta Empires located in the Ganges Basin arose from early political consolidations. Their age was characterized by a vast range of inventiveness, but also by the decreasing position of women and the adoption of untouchability into an organized system of religion. The Middle Countries of South India introduced Dravidian-language scripts and religious traditions to Southeast Asian kingdoms.

Christianity, Islam, Judaism, and Zoroastrianism established themselves on India's southern and western shores in the early medieval century. Muslim troops from Central Asia invaded India's northern plains on a regular basis, ultimately creating the Delhi Sultanate and absorbing northern India into the cosmopolitan networks of medieval Islam. The Vijayanagara Empire established a long-lasting composite Hindu culture in south India in the 15th century. Sikhism evolved in the Punjab, opposing institutionalized religion. In 1526, the Mughal Empire brought two centuries of relative calm, leaving a legacy of dazzling architecture. The British East India Company gradually expanded its influence, transforming India into a colonial economy while simultaneously strengthening its sovereignty. The British Crown took over in 1858. The rights promised to Indians were gradually given, but technical advances were made, and notions about education, modernity, and public life took hold. A strong and prominent nationalist movement arose, known for peaceful resistance, and proved a crucial role at the end of British authority. The British Indian Empire was partitioned into two sovereign dominions in 1947, a Hindu-majority Dominion of India and a Muslim-majority Dominion of Pakistan, amid widespread death and migration.

Since 1950, India has been a federated republic administered by a democratic parliamentary government. It is a multicultural, multilingual, and multiethnic society. The population of India increased from 361 million in 1951 to 1.211 billion in 2011. During the same period, its nominal per capita income climbed from US$64 to US$1,498 per year, and its literacy rate improved from 16.6 percent to 74 percent. India has grown from a relatively impoverished nation in 1951 to a fast-growing major economy and a powerhouse for information technology services, with an increasing middle class. It has a space program that includes multiple extraterrestrial missions that are either planned or accomplished. Indian films, music, and spiritual teachings are becoming more important in worldwide society. India has significantly decreased its poverty rate, albeit at the expense of expanding economic disparity. India is a nuclear-weapons state with substantial military spending. It has had unsolved issues with its neighbors, Pakistan and China, over Kashmir since the mid-twentieth century. Gender inequality, child hunger, and growing levels of air pollution are among the socioeconomic difficulties that India confronts. With four biodiversity hotspots, India's territory is megadiverse. Its forest cover accounts for 21.7 percent of its total area. India's wildlife, which has always been treated with tolerance in Indian culture, is preserved in these forests and elsewhere.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in India is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Employees are entitled to a total of 15 paid holiday days each year. The full number of vacation days that can be rolled forward to the next year is 30.

Public holidays

Republic Day, Independence Day, and Ghandi Jayanti are three national holidays on which companies must close. Furthermore, each region has its own set of public holidays that are celebrated.

Sick days

Employees are given a limit of 15 paid vacation days each year and are paid 70% of their regular monthly pay over this period.

Maternity leave

In the six months leading up to childbirth, employees are paid at 100% of their annual salary. The amount of fully compensated days off an employee is entitled to is determined by the number of children he or she has.

26 weeks charged for the first two infants

If you have three or more girls, you will be paying for 12 weeks.

Paternity leave

While obligatory leave is not required in the private sector, male government employees often receive 15 days off.

Parental leave

India currently has no statutory laws and regulations regarding parental leave.

Other leave

Casual leave is available in the event of an emergency or unforeseen circumstance. Typically, businesses have a rigid monthly limit of three days and an annual limit of six days. Casual leave cannot be redeemed. Unused leave is automatically forfeited at the end of the year.

Work-related disability leave: Work-related injury payments are funded by employee premiums to workers' compensation and state insurers. Temporarily affected employees are paid 50% of their monthly wages.

5. Employment termination

There is no information about employment information for this country.

Termination process

In India, either the employer or the employee may end an employment contract. Generally, notice is required.

Notice period

Depending on whether or not the employee is still on probation, the notice period is between 15 and 30 days. It is possible to pay in lieu of notice.

Probation period

Probationary periods are commonly used in India with 3 months being a typical probation timeframe. The maximum initial probation is 3 months, and then the employer can extend the probation for up to an additional 3 months.

Severance pay

Severance pay is available in certain circumstances and is calculated as 15 days of pay for each year of service.

6. Working hours

There is no information about the working hours for this country.

General working schedule

Employees typically work between 40 and 48 hours per week, but hours vary according to the type of work and industry. Between workdays, Indian workers receive 10.5 hours of rest.

Overtime

Overtime is compensated at twice the rate of regular pay.

7. Minimum wage

There is no information about the minimum wage for this country.

Minimum wage laws in India vary by state and sector. For example, state governments set a separate minimum wage for the agriculture sector. Employers are required to provide employees with payslips, and it is common for employers to pay employees directly from their bank accounts.

Employers typically pay employees on the first of each month. According to the Wages Act, all businesses with fewer than 1,000 employees are required to pay wages on or before the 7th of each month, while businesses with more than 1,000 employees are required to pay on or before the 10th.

Salary inflation is prevalent in India, with employees anticipating an annual increase in title and wage of approximately 10% to 15%. While India's compensation laws do not require this increase, employees who do not receive one are likely to seek alternative employment, particularly in the technology sector.

8. Employee benefits

There is no information about the employee benefits for this country.

In India, there is a mix of public and private insurance, and some candidates request a stipend for additional medical coverage.

Many employers also provide supplemental insurance.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Companies in India are imposed a corporate tax rate between 15 percent and 22 percent. These rates are also already inclusive of surcharge and cess.

Individual income tax

Income tax is a tax levied on people or organizations (taxpayers) based on their income or profits (taxable income). In most cases, income tax is calculated as the product of a tax rate multiplied by taxable income. Individuals, on the other hand, pay tax at slab rates. The Government established a new tax system for people in the Finance Act of 2020, offering them the choice of opting for the new regime or continuing with the previous regime.

The Income Tax Department collects the tax on behalf of the federal government. Farmers, who make up 70% of the Indian workforce, are usually exempt from paying income tax in India.

In India, income tax returns are usually due on the 31st of July, 30th of September, or 30th of November, depending on the taxpayer type.

Everyone in India who earns or receives an income is liable to income tax. The income was split into five categories by the I-T Department: income from salary, revenue from other sources, income from house property, income from capital gains, and income from business and profession.

VAT, GST and sales tax

The Goods and Services Tax (GST) is an indirect tax levied on the provision of goods or services.

Central Goods and Services Tax (CGST): A portion of the tax levied on intrastate transactions that is paid to the central government.

State Goods and Services Tax (SGST): A tax levied by the state on intrastate transactions.

Integrated Goods and Services Tax (IGST): a sales tax levied on interstate transactions.

For tax collection purposes, goods and services are split into five tax slabs: 0%, 5%, 12%, 18%, and 28%. Petroleum goods, alcoholic beverages, and electricity, on the other hand, are not taxed under GST and are instead charged individually by individual state governments, as was the case under the old tax regime.

10. VISA and work permits

There is no information about VISA and work permits for this country.

In India, there are two sorts of visas: business visas (visits to India for up to six months to do business for a non-Indian firm) and employment visas.

Foreigners coming to India for work must get an employment visa. The maximum duration for this kind of visa is five years; however, if the job contract is longer than five years, an extension must be obtained before the visa expires.

This visa also allows you to live and work in India on a permanent basis. Visa applications must be submitted in the applicant's home country.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Names of the employer and employee

Address of the employer and location where work will be performed

Salary and payment intervals

Vacation and other leave entitlements

Work hours and days

Probation period (if applicable)

Notice periods and other details related to end of employment

Signatures of employer and employee

With Rivermate being your Employer of Record (EoR) in India, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Indian Rupee (INR)

13.Opening a subsidiary in India

There is no information about the working hours for this country.

How to set up a subsidiary

Before establishing a subsidiary in India, you must examine a number of issues. Begin by deciding the area or business you want to join. India has varied FDI restrictions for different industries, and it is essential to get prior clearance from the Reserve Bank of India before establishing a commercial presence.

Incorporating a corporation in India is a lengthy and difficult procedure that may cost a large amount of money before the establishment is complete. The majority of firms select between a private limited and a public limited subsidiary depending on how active they would be in the nation. The following stages are involved in the incorporation process:

1. Get a Director Identification Number (DIN) online

2. Get a Digital Signature Certificate (DSC) online

3. Reserve a business name through the Registrar of Companies

4. Prepare the Memorandum and Articles of Association

5. File an incorporation application online

6. Request a certificate to commence operations

7. Create a company seal

8. Get a permanent account number (PAN)

9. File with the Employees’ Provident Fund Organization

10. Register for VAT

11. Apply for medical insurance

Subsidiary laws

Subsidiary laws in India vary greatly according on locality. Every state in India works nearly as if it were its own nation. Different cities and areas may have different restrictions, fees, and availability. Furthermore, each has distinct cultural customs and languages, which may make doing business challenging.

The procedures for incorporation also alter depending on whether you establish a public or private subsidiary:

Private limited companies are appropriate for small and medium-sized enterprises. Because of the minimal reporting requirements, they are the most popular. Subsidiary regulations in India mandate a minimum paid-up capital of $1,620 and a minimum of two subscribers. Private corporations must have at least two directors and a maximum of fifteen. You must also produce financial statements and submit them to a statutory audit within six months of the fiscal year's conclusion.

Limited liability corporation (LLC): The Securities and Exchange Board of India (SEBI) requirements must be followed by this subsidiary of a public business. Subsidiary regulations in India require a minimum paid-up capital of $8,100 and at least seven subscribers. A minimum of three directors, but no more than 15, are also required for public businesses. Accounting and auditing standards are the same for both public and private subsidiaries.

13. Why choose Rivermate as your Employer of Record / PEO in India

Establishing an entity in India to hire a team takes time, money, and effort. The labor law in India has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into India simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in India give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in India via our Employer of Record (EOR) / PEO solution.

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