Remote’s guide to employing in

India
india flag

Make employment in India easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in India, all in one easy-to-use platform.

  • Capital City

    New Delhi

  • Currency

    Indian rupee (₹, INR)

  • Languages

    English, Hindi, and 22 regional languages

  • Population size

    1,352,642,280

Services available in this country:
Employer of Record ProductContractor ManagementPayroll

Facts & Stats

  • Capital City

    New Delhi

  • Currency

    Indian rupee (₹, INR)

  • Languages

    English, Hindi, and 22 regional languages

  • Population size

    1,352,642,280

  • 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.)

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.

Grow your team in India with Remote

Looking to employ workers in India? Companies hiring in India must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in India on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your India team. You can also pay contractors now in India with Remote.

Risks of misclassification

India, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in India may lead to fines and penalties for the offending company.

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.

Minimum Wage

The minimum wage is stipulated by law, but varies state-by-state and the nature of employment . For skilled workers, the minimum wage ranges from INR 10,000 to INR 22,000 depending on the state.  In Delhi, the minimum wage for skilled workers is INR 21,215 per month (approximately USD 250 per month). The minimum wages are set regulated by according to the Minimum Wages Act, 1948, and by respective states.

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 3 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.

3 Public holidays

Jan
Friday, January 26, 20241Republic Day
Aug
Thursday, August 15, 20242Independence Day
Oct
Wednesday, October 2, 20243Mahatma Gandhi's Birthday

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in India: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in India

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in India are tailored to fulfil 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

Local market insights

  • As of 2020, it is required by law for employers in India to offer supplemental health insurance to their workforce.

  • Although the country has a public health system, it is known to not offer the best quality of care. It is important for employees in India to have private health insurance to get the care they need. Our plans also offer global coverage (excluding the US) to protect your employees when they are traveling outside their home country.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in India, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in India

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

  • 12%

    Provident Fund

  • 3.25%

    Health Insurance

Types of leave

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

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 (e.e. theft, fraud, etc.);

  • Mutual separation;

  • Collective dismissal due to economic reasons (e.g. bankruptcy, restructuring, etc.)

Notice period

Notice period varies by the sectors of occupation and differs across states. It is governed by the Industrial Disputes Act, 1947, and the Shops and Establishment Acts of different states. In Delhi, 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. Employer and employee can agree on longer notice periods in the employment contract.


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.

Fair Pricing in India

Employer of Record

Hire and pay your global team

Starting at $599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Sign up

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Remote Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HR Management

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app