India

India is one of the world’s fastest-growing economies and a leading destination for global hiring. With its large, tech-savvy workforce, competitive labor costs, and strong legal framework, India is ideal for building distributed teams across industries like technology, customer service, and finance. However, employers must navigate a complex web of central and state labor laws, statutory contributions, and payroll compliance requirements.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Indian Rupee (INR)
Payroll Frequency
Monthly
Employer Taxes
16.75%

Overview

Population
~1.44 billion
Language
Hindi (national), English (widely used in business)
Capital
New Delhi
Currency
Indian Rupee (INR)
Country code
+91
Min wage
Varies by state, industry, and skill level
Working hours
8–9 hours per day
Weekdays
Monday–Saturday
Work hours per week
48

Payroll

Salaried Employees
Time-Based Employees

Monthly, paid by the 7th of the following month

13th Salary

Not mandatory, but gratuity is legally required after 5 years of service

Avg employer tax

16.75%

Tax Breakdown

Employer Contributions (statutory benefits): ~16–17%

Provident Fund (EPF)
12%
Employee State Insurance (ESI)
3.25% (for employees earning less than ₹21,000/month)
Professional Tax
Small fixed amount (state-specific)
Labor Welfare Fund
Nominal, in applicable states

Employee Contributions: ~12%

EPF
12% of basic salary
ESI
0.75% (if applicable)
Professional Tax
Deducted monthly in certain states

Personal Income Tax (2025), Under the new regime (optional):

Up to ₹3,00,000
0%
₹3,00,001–6,00,000
5%
₹6,00,001–9,00,000
10%
₹9,00,001–12,00,000
15%
₹12,00,001–15,00,000
20%
Above ₹15,00,000
30%

GST (VAT equivalent):

Standard rate
18% (for services) Varies by industry

VAT

VAT
  • 12-18% (reduced rate is 5%)
Tax Calculation for India
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IN
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in India typically includes the following steps to ensure a smooth transition for new hires:

Employment Agreement

  • Must be in English or a local language
  • Should include job title, compensation, benefits, working hours, leave, notice period, and applicable laws
  • Clearly state whether it's full-time, fixed-term, or contractual

Statutory Registrations

Register employees for:

  • Provident Fund (EPF)
  • ESI (if salary less than ₹21,000/month)
  • Professional Tax (if applicable)
  • Labor Welfare Fund (in certain states)

Collect Required Documents

Draft detailed employment contracts specifying job descriptions, compensation, working hours, and notice periods, in accordance with Austrian regulations.

Complete Necessary Paperwork

  • PAN card
  • Aadhaar (for Indian nationals)
  • Bank account details
  • Passport/visa (for foreign workers)
  • Educational and work certificates

Form 16 & Payslips

Employers must provide monthly payslips and an annual Form 16 for tax filing

Other Requirements

  • Maintain employee registers and wage records
  • Provide internal policies, sexual harassment redressal policies (POSH Act), and code of conduct

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in India
When drafting an employment contract for employees in India, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Varies by state law/company policy
  • Typically 6–12 days/year
  • Paid at full salary
  • Doctor’s note required for extended sick leave
Maternity leave
  • 26 weeks paid leave for the first two children
  • 12 weeks for the third child onward
  • 100% salary paid by the employer
  • Applicable only if the employee has worked 80+ days in the past 12 months
Paternity leave
  • Not mandatory under law
  • Many private companies offer 5–15 days of paid paternity leave

Parental/Adoption Leave:

  • Female adoptive parents entitled to 12 weeks of paid leave
  • Surrogacy leave and shared parental leave are offered at employer discretion
Annual Leave
  • Minimum 15–21 days/year depending on company policy
  • Typically includes earned leave, casual leave, and sick leave
  • Unused earned leave is often carried forward or paid out
Public holidays in India
  • National holidays (e.g., Republic Day, Independence Day, Gandhi Jayanti) are mandatory
  • Each state declares additional 10–14 holidays/year
  • Festival holidays vary by region and religion

Termination Process

Grounds for Termination

  • Resignation, redundancy, misconduct, performance, mutual agreement
  • Must follow due process under the Industrial Disputes Act or Shops & Establishments Act

Notice Period

  • Varies by contract and company policy
  • Typically:
    • 1 month (junior roles)
    • 2–3 months (senior roles)
  • Buyout/pay in lieu of notice is allowed

Severance Pay

  • Gratuity is payable after 5 years of continuous service:
    • 15 days’ pay for every completed year of service
  • Additional severance may apply in layoffs or retrenchments

Probation Period

  • Commonly 3 to 6 months
  • Shorter notice periods apply during probation (7–15 days)

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in India
with RemotePass

India offers a deep, affordable talent pool across engineering, finance, support, and creative roles, but local labor laws can be complex. With RemotePass, you can hire employees or contractors in India compliantly without setting up a legal entity. We handle employment contracts, benefits, onboarding, payroll, and tax filings so you stay compliant and competitive.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including India.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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India

India is one of the world’s fastest-growing economies and a leading destination for global hiring. With its large, tech-savvy workforce, competitive labor costs, and strong legal framework, India is ideal for building distributed teams across industries like technology, customer service, and finance. However, employers must navigate a complex web of central and state labor laws, statutory contributions, and payroll compliance requirements.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Indian Rupee (INR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
16.75%

نظرة عامة

التركيبة السكانية
~1.44 billion
اللغة
Hindi (national), English (widely used in business)
العاصمة
New Delhi
العملة
Indian Rupee (INR)
رمز الاتصال الدولي
+91
الحد الأدنى للأجور
Varies by state, industry, and skill level
ساعات العمل
8–9 hours per day
أيام الأسبوع
Monday–Saturday
ساعات العمل اسبوعيا
48

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني

Monthly, paid by the 7th of the following month

13th Salary

Not mandatory, but gratuity is legally required after 5 years of service

متوسط ​​ضريبة صاحب العمل

16.75%

تحصيل الضرائب

Employer Contributions (statutory benefits): ~16–17%

Provident Fund (EPF)
12%
Employee State Insurance (ESI)
3.25% (for employees earning less than ₹21,000/month)
Professional Tax
Small fixed amount (state-specific)
Labor Welfare Fund
Nominal, in applicable states

Employee Contributions: ~12%

EPF
12% of basic salary
ESI
0.75% (if applicable)
Professional Tax
Deducted monthly in certain states

Personal Income Tax (2025), Under the new regime (optional):

Up to ₹3,00,000
0%
₹3,00,001–6,00,000
5%
₹6,00,001–9,00,000
10%
₹9,00,001–12,00,000
15%
₹12,00,001–15,00,000
20%
Above ₹15,00,000
30%

GST (VAT equivalent):

Standard rate
18% (for services) Varies by industry

ضريبة القيمة المضافة

ضريبة القيمة المضافة
  • 12-18% (reduced rate is 5%)
حساب الضريبة في India
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IN
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في India عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Agreement

  • Must be in English or a local language
  • Should include job title, compensation, benefits, working hours, leave, notice period, and applicable laws
  • Clearly state whether it's full-time, fixed-term, or contractual

Statutory Registrations

Register employees for:

  • Provident Fund (EPF)
  • ESI (if salary less than ₹21,000/month)
  • Professional Tax (if applicable)
  • Labor Welfare Fund (in certain states)

Collect Required Documents

Draft detailed employment contracts specifying job descriptions, compensation, working hours, and notice periods, in accordance with Austrian regulations.

Complete Necessary Paperwork

  • PAN card
  • Aadhaar (for Indian nationals)
  • Bank account details
  • Passport/visa (for foreign workers)
  • Educational and work certificates

Form 16 & Payslips

Employers must provide monthly payslips and an annual Form 16 for tax filing

Other Requirements

  • Maintain employee registers and wage records
  • Provide internal policies, sexual harassment redressal policies (POSH Act), and code of conduct

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في India
عند إعداد عقد عمل للموظفين في India يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Varies by state law/company policy
  • Typically 6–12 days/year
  • Paid at full salary
  • Doctor’s note required for extended sick leave
إجازة الأمومة
  • 26 weeks paid leave for the first two children
  • 12 weeks for the third child onward
  • 100% salary paid by the employer
  • Applicable only if the employee has worked 80+ days in the past 12 months
إجازة الأبوة
  • Not mandatory under law
  • Many private companies offer 5–15 days of paid paternity leave

Parental/Adoption Leave:

  • Female adoptive parents entitled to 12 weeks of paid leave
  • Surrogacy leave and shared parental leave are offered at employer discretion
Annual Leave
  • Minimum 15–21 days/year depending on company policy
  • Typically includes earned leave, casual leave, and sick leave
  • Unused earned leave is often carried forward or paid out
عطلات رسمية في India
  • National holidays (e.g., Republic Day, Independence Day, Gandhi Jayanti) are mandatory
  • Each state declares additional 10–14 holidays/year
  • Festival holidays vary by region and religion

عملية إنهاء العقود

Grounds for Termination

  • Resignation, redundancy, misconduct, performance, mutual agreement
  • Must follow due process under the Industrial Disputes Act or Shops & Establishments Act

Notice Period

  • Varies by contract and company policy
  • Typically:
    • 1 month (junior roles)
    • 2–3 months (senior roles)
  • Buyout/pay in lieu of notice is allowed

Severance Pay

  • Gratuity is payable after 5 years of continuous service:
    • 15 days’ pay for every completed year of service
  • Additional severance may apply in layoffs or retrenchments

Probation Period

  • Commonly 3 to 6 months
  • Shorter notice periods apply during probation (7–15 days)

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في India
مع ريموت باس

India offers a deep, affordable talent pool across engineering, finance, support, and creative roles, but local labor laws can be complex. With RemotePass, you can hire employees or contractors in India compliantly without setting up a legal entity. We handle employment contracts, benefits, onboarding, payroll, and tax filings so you stay compliant and competitive.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك India.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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