Hire employees and contractors in India

Remote’s guide to employing in India.

  • Capital city

    New Delhi

  • Currency

    Indian rupee
    (, INR)

  • Population size

    1,352,642,280
    (2018 est.)

  • Languages spoken

    English, Hindi, and 22 Regional Languages

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

India, officially the Republic of India (Hindi: Bhārat Gaṇarājya), is a country in South Asia. It is the second-most populous country, the seventh-largest country by area, and the most populous democracy in the world. India has been a secular federal republic since 1950, governed in a democratic parliamentary system. It is a pluralistic, multilingual and multi-ethnic society and has become a fast-growing major economy, a hub for information technology services, with an expanding middle class.

  • Capital city

    New Delhi

  • Currency

    Indian rupee
    (, INR)

  • Languages spoken

    English, Hindi, and 22 Regional Languages

  • Population size

    1,352,642,280 (2018 est.)

  • Ease of doing business

    Easy

  • Cost of living index

    $ (138 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    12.5%-15%

  • GDP - real growth rate

    6.982% (2018 est.)

Grow your team in India with Remote

Employing in India requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in India makes full compliance with employment laws a burdensome process.

Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.

Risks
of misclassification

India, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in India

Under the Constitution of India, labour falls within the concurrent list giving power to both the Central and the respective State Government to legislate on such items, with the residual law-making powers vesting with the Centre.

This has resulted in a plethora of central and state laws related to wages, employment, industrial relations, social security, etc. being enacted to protect the interests of employees and to increase employment opportunities. The following are only guidelines in the broadest sense, and professional legal services are recommended when employing in India.

Public holidays

Date
Holiday Name
Friday, January 14, 2022Makar Sankranti
Wednesday, January 26, 2022Republic Day
Saturday, February 5, 2022Vasant Panchami
Tuesday, March 1, 2022Maha Shivaratri - Shivaratri
Friday, March 18, 2022Holi
Friday, April 15, 2022Good Friday
Monday, May 2, 2022Eid
Sunday, July 31, 2022Muharram - Ashura
Thursday, August 11, 2022Raksha Bandhan
Monday, August 15, 2022Independence Day
Thursday, August 18, 2022Janmashtami
Wednesday, August 31, 2022Ganesh Chaturthi 
Sunday, October 2, 2022Mahatma Gandhi Jayanti
Wednesday, October 5, 2022Dussehra
Monday, October 24, 2022Diwali 
Tuesday, October 25, 2022Govardhan Puja
Wednesday, October 26, 2022Bhai Duj
Tuesday, November 8, 2022Guru Nanak Jayanti
Sunday, December 25, 2022Christmas
Invalid Date

Minimum Wage

Minimum Wage: stipulated by law, but varies state-by-state. Ranges from 160 rupees per day in Bihar, 348/day in Mumbai and 750 rupees per day in Kerala. State government set a separate minimum wage for agricultural workers. The minimum wages are set according to the 1948 Minimum Wages Act.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in India fast. The minimum onboarding time we need is only 9 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in India

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in India are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

In order to access specific information about our benefits packages in India, start onboarding your first employee with Remote today.

Tax and Social Security in India

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in India.

  • Employer

    • 12% - Provident Fund

    • 3.25% - Health Insurance

  • Employee (Old tax regime)

    • Minimum 12% - Provident Fund

    • 0.75% - Health Insurance

    • 0% - Up to Rs 250,000

    • 5% - Rs 250,001 - Rs 500,000

    • 20% - Rs 500,001 - Rs 10,00,000

    • 30% - Above Rs 1,000,000

  • Employee (New tax regime)

    • Minimum 12% - Provident Fund

    • 0.75% - Health Insurance

    • 0% - Up to Rs 250,000

    • 5% - Rs 250,001 - Rs 500,000

    • 10% - Rs 500,001 - Rs 750,000

    • 15% - Rs 750,001 - Rs 1,000,000

    • 20% - Rs 1,000,001 - Rs 1,250,000

    • 25% - Rs 1,250,001 - Rs 1,500,000

    • 30% - Above Rs 1,500,000

Types of leave

Statutory leave

By law, full-time workers in India are entitled to 15 days of holiday leave per year.

Pregnancy and maternity leave

Expecting mothers are entitled to six months of paid pregnancy leave (before the due date) and at least 26 weeks maternity leave (after childbirth) for the first two children. For mothers with more than three children, each new child results in an entitlement of 12 weeks of paid maternity leave.

Parental/paternal leave

The private sector does not have mandatory parental leave and any parental leave policies are decided on a per-company basis. Male Indian government employees get up to 15 days.

Other leave

  • Casual leave: provided for urgent and unexpected matters. Companies commonly have a limitation of three days of casual leave per month and a total of six per year. Lapses automatically by end of year if unused.
  • Work related injury leave: intended for unforeseen personal circumstances for which an employee has to take time off immediately. Examples include making arrangements for the care of a sick family member or in the event of a death in the family.

Employment termination

Termination process

Termination of the employment relationship can happen in the following ways:

  • Voluntary termination by the employee (resignation);
  • Retirement as per the employment contract;
  • Non-renewal of the employment contract or expiry;
  • Dismissal of the employee due to serious employee misconduct (f.ex. theft, fraud, etc.); or
  • Collective dismissal due to economic reasons (f.ex. bankruptcy, restructuring, etc.).

Notice period

For an employee that has worked for at least 3 months, a notice period of 30 days is required. No notice is required for termination for misconduct.

Probation periods

There is no legal stipulation for minimum and maximum probation periods. However, as a matter of trade practice, the probation period usually ranges from 2 to 6 months.

Build your team,
anywhere in the world.