India PEOs & Employers of Record (EOR)
Dhi ADT's India PEO and EOR solutions can assist you in onboarding candidates and managing payroll and HR issues, all without the hassle of setting up a subsidiary in India. Once you've hired the talent you need, you can easily customize employment contracts and employee benefits, and make compliant payments—all from a single platform with just a few clicks.
Ensure compliance with local laws and handle payroll taxes while focusing on your India business operations. Hire and expand into India using the best SaaS-based PEO service in India.
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Employment Laws in India
Capital: New Delhi
Official language: Hindi, English & Others
Currency: Indian Rupee (INR)
Payroll Cycle: Monthly
Employment Contract: Employment contracts vary from company to company. However, companies may develop a standard template containing the minimum terms and conditions that should become part of the employment contract and the contracts must be in a language understood by both contracting parties which are generally in English, provided that both parties understand it.
Minimum Wages: The average minimum wage in India is Rs 176/day for an eight-hour workday.
Employer Taxes: Employer Taxes are approximately 13.05% - 16.25% of Gross salary.
Working Hours: Employees in India work eight or nine hours per day, totaling 48 hours a week. Overtime is paid double the rate of an employee’s normal pay.
Annual Leave: The Factories Act has provided annual/earned leave of 12 working days for all workers who have worked at least 240 days in a year.
Probation Period: Probation periods are not mandatory in India. The common practice for multinational companies (MNCs) is three to six months depending on the seniority of the employee.
Notice Period: The notice period for employees under probation is up to 30 days. For regular employees, the notice period will be up to 3 months.
Termination: In India, the termination process may vary from one employer to another and mostly follows the terms indicated in the employment contract.
Severance Pay: In accordance with the Payment of Gratuity Act 1972, a worker is entitled to a gratuity payment upon termination of his service after five years of continuous employment.
National Holidays: As a general practice in India, most employers provide 10 public holidays (from the below list), but the number varies from state to state.
1. New Year’s Eve
2. Makar Sankranti
3. Republic Day
4. Holi
5. Good Friday
6. Id-ul-Fitr
7. Labour Day
8. Bakrid
9. Independence Day
10. Raksha Bandhan
11. Ganesh Chaturthi
12. Mahatma Gandhi Jayanti
13. Dussehra
14. Diwali
15. Christmas
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