Get started

Employ in India with ease.

Remote makes employment in India easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.

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

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 workers differently and there are risks associated with misclassification.

If you're worried about whether to hire contractors or employees in India or anywhere else around the world, Remote can help. Our Solutions Consulting team are experts in preventing misclassification risks. Download our Contractor Compliance Checklist for a solid overview, then talk to our team about your specific situation.

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

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

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 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.

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.

Calculate the cost to hire an employee
in India

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.

Discover how Remote can help you grow your global team.