Hire employees and contractors in India
Outstaffer’s guide to employing in India.
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
- Official Languages
- English, Hindi, and 22 Regional Languages
- Population size
- 1,352,642,280 (est. 2018)
- 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% (est 2018)
Tech Talent in India
India is a global powerhouse when it comes to tech talent. The country boasts an immense pool of highly skilled software developers, engineers, and IT professionals. Indian universities produce graduates with strong technical know-how, and cities like Bangalore, Hyderabad, and Pune have evolved into major tech hubs, attracting both startups and multinational corporations. India's rich culture of innovation, a robust outsourcing industry, and a vast English-speaking workforce have contributed to its reputation as a top destination for tech companies worldwide. Indian tech talent is known for its adaptability, creativity, and problem-solving abilities, making it a driving force behind India's position as a leading player in the global tech ecosystem.
Grow your team in India with Outstaffer
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.
Outstaffer 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 Outstaffer.
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
All employee payments are made bi-monthly by Outstaffer.com on your behalf and passed through to you.
Onboarding time
We can help you get a new employee started in India fast. The minimum onboarding time we need is only 4 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 Outstaffer 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. Outstaffer has a payroll cut-off date of the 10th of the month unless otherwise specified.
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.
To employ workers in India, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 26
Republic Day
Aug 15
Independence Day
Oct 2
Mahatma Gandhi's Birthday
Competitive benefits package in India
Outstaffer 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:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes 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.
Get started with Outstaffer in three easy steps
01. Book a call or sign up
Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.
02. Add your people
From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform
03. Dedicated onboarding
Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.