INDIA PEO & EOR
Hire in India without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in India today with Gibson Watts Global.
DID YOU KNOW
- Cows are considered sacred in India. Protected by the Constitution, cows have freedom to roam the busy streets of India, and mistreatment of them is criminalized.
- Diamond mining originated in India, and the nation was the world’s only source of diamonds for 1,000 years in the 4th century BC.
- With its extremely diverse population, it may come as no surprise that India has over 22 recognized languages. India also holds the 2nd largest population of English speakers (after the United States).
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India EOR Services
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Working in India
Financial Year Dates
India’s financial year runs from 1st April to 31st March
Minimum Wage
Minimum wage varies depending on the state, industry and skill level. The national minimum wage guideline is roughly INR 178 per day, or equivalent to INR 5,340 per month.
Standard working hours
Standard working hours are typically 8 or 9 hour days, totaling 48 hours per week. However, this can vary depending on the state and industry. Employees are entitled to a weekly rest day, which is usually a Sunday.
Overtime
Employees who carry out any work outside of their normal hours should be paid an overtime rate of 200% of their standard wage. Including overtime, 50-60 hours is the maximum working hours per week.
Holiday Allowance
Depending on the state, holiday allowance can vary; however, the standard number of annual leave days per year an employee is entitled to is 15 days.
Sick Leave
Sick leave entitlement in India varies depending on the state, it typically varies between 5 and 12 days.
Maternity & Paternity Leave
To be eligible for maternity leave, all employees (regardless of if they are permanent, temporary or contractual) must have worked for the employer a minimum of 80 days in the past 12 months before their expected due date.
The length of leave depends on the number of children the employee has:
- First or second child entitles up to 8 weeks before the expected due date and 26 weeks maternity leave following the birth
- Third or subsequent child entitles up to 6 weeks before the expected due date and 12 weeks maternity leave following the birth
Employees receive their full salary with no deductions during their maternity leave.
Public Holiday
India has only three national holidays:
- Republic Day
- Independence Day
- Gandhi Jayanti
There are many other holidays and festivals celebrated across the various different regions.
Social Contributions
India’s social security system is made up of several schemes and laws that provide Medical, Maternity leave, disability, sickness and death benefits to both employees and the general population.
In addition, the National Social Assistance Programme (NSAP) provides pensions including the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) which provides a monthly pension to BPL (Below Poverty Line) people over the age of 60.
Income Tax
Taxation in India is primary based on a person’s residency status for the relevant tax year. Under Indian tax laws, ‘Residents’ and ‘Ordinarily Residents’ are subject to tax in India and any worldwide income. Residents and Ordinarily Residents are subject to tax from income accrued, received or business controlled in India only. Non-residents of India are subject to tax that is accrued or received in India only.
Taxable Income (INR) Over (column 1) | Taxable Income (INR) Not over
| Tax on column 1 (INR) | Tax on excess (%) |
0 | 300,000 | – | 0 |
300,000 | 700,000 | – | 5 |
700,000 | 1,000,000 | 20,000 | 10 |
1,000,000 | 1,200,000 | 50,000 | 15 |
1,200,000 | 1,500,000 | 80,000 | 20 |
1,500,000 |
| 140,000 | 30 |
Health Care
India’s public sector is managed by central and state governments which provides public hospitals free to all Indian residents.
Individual practitioners, nursing homes, clinics and corporate hospitals make up India’s private sector.
Visas
Like any other country, India has its own system for issuing visas that allow foreign employees to live and work in the country.
- Employment Visas, also known as E Visas, are only available to employees of Indian-registered companies.
- The Indian embassy or consulate may issue a one-year Work Visa to a foreign employee irrespective of the duration of the contract or the employment terms.
- If a foreign employee’s visa expires, they can apply for a visa extension through the FRRO/MHA in the relevant state. A maximum extension of 5 years can be granted.
- Foreign skilled employees working in the IT or ITES industries can be issued multiple-entry Employment Visas for up to three years or the duration of the contract/assignment.
- A foreign visitor to India with a visa valid for less than 180 days is not required to register with the FRRO/FRO.
- Foreign visitors with employment visas valid for more than 180 days in India are required to register with their local FRRO/FRO within 14 days of arrival.
Along with these basic terms for the Indian Employee Visa, foreign employees must meet several other terms and conditions.
Businesses who are looking to expand into the Indian market without a local entity in the country should consider an India EOR. Gibson Watts Global regularly offer this service to support expanding organizations.
Cultural Information
India is one of the world’s most ethnically diverse countries, with multiple dialects, faiths, music, dance, delicacies, and architecture that vary from state to state and region to region. The country, which is home to over 1.3 billion people, is divided into 29 states and 7 union territories, each with its own culture, language, dress, food, fashion, religion, architecture, geography, custom & tradition, festivals, literature, and more.
India has a diverse & rich linguistic landscape, with 22 major languages and hundreds more regional or local languages. Most Indians are bilingual or multilingual, speaking an official language as well as their regional tongue. English is regarded as a secondary official language that is commonly reserved for governmental and commercial purposes. People who do not speak the first or native language usually communicate in Hindi or English.
