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Key Takeaways
India’s regulatory landscape is highly layered: It blends federal laws with state-specific rules on minimum wages, professional tax, employment standards, and statutory filings, making expert local compliance essential.
A strong India-capable EOR reduces risk: Partnering with an EOR means they handle EPF/ESIC, TDS, PT, contracts, terminations, payroll deadlines, and state-level nuances which prevents costly compliance errors.
Choosing an EOR should focus on: Local presence, regulatory expertise, transparent pricing, and reliable payroll, with Playroll highlighted as a leading provider offering fast onboarding, AI-driven compliance checks, and best-in-class support.
India has one of the largest and fastest-growing talent pools in the world, with expertise in engineering, IT, finance, customer support, and back-office operations – all with a strong talent-to-cost advantage. But, like in many other countries, hiring in India isn’t always straightforward.
Managing compliance across India’s 28 states and 8 union territories – each with its own Model Shops & Establishments Act, professional tax rules, and employment standards – can overwhelm even the most experienced HR teams. That’s why many companies often partner up with an Employer of Record to hire quickly and compliantly without opening a local entity.
In this guide, I’ll break down how EORs operate in India, what to consider when choosing a provider, typical costs involved, and the leading EOR partners for 2026.
What Is an Employer of Record: And Why Does It Matter in India?
An Employer of Record is a third-party entity that becomes the legal employer of your team members in India. Companies partner with EORs to issue compliant employment contracts, onboard employees, run payroll, administer benefits, manage statutory contributions, calculate taxes, and stay ahead of complex and frequently updated Indian labor laws.
In India, hiring with an EOR helps you navigate one of the most layered regulatory environments in the world. India’s labor system mixes federal laws (EPF, ESIC, Income Tax Act, Bonus Act, Gratuity Act), state-specific rules (shops & establishments, minimum wages, professional tax), emerging national labor codes, and strict statutory filing deadlines.
A few real-world challenges HR teams often encounter in India:
- EPF (Employer Provident Fund) & ESIC (Employees’ State Insurance Corporation) compliance with strict percentages and remittance deadlines
- Professional Tax (PT), which varies by state and can change during budget cycles
- Tax Deducted at Source (TDS) requirements that must be filed monthly
- Statutory bonus and gratuity obligations for eligible employees
- Frequent payroll data updates, especially for allowances and tax regimes
- Multi-state compliance, where employees in different states follow different laws
And beyond the legal considerations, there’s the human side of hiring in India. Teams have strong expectations around job security, notice periods, festival bonuses, hybrid-work flexibility, and clear career growth – all of which play a huge role in retention. India’s talent market moves quickly, is highly technical, and runs on well-defined processes.
That’s Where a High-Quality EOR Becomes Essential
Hiring in India requires understanding how labor laws work on the ground. Regulations shift, filings are time-bound, and statutory systems (like EPFO, ESIC, IT Portal, and state labor portals) can be complex to navigate without deep local expertise.
A strong India-capable EOR brings:
- Local Fluency: Understanding EPF, ESIC, gratuity, PF limits, statutory bonus rules, Shops & Establishments Act (S&E) compliance, state-specific PT, and evolving labor codes.
- Rapid Adaptation: Adjusting quickly when tax rates, PF wage ceilings, or state-level requirements change mid-year.
- Risk Shielding: Ensuring compliant contracts, terminations, probation extensions, and statutory documentation to avoid fines or disputes.
- On-the-Ground Insight: Knowing how different state labor departments operate, where delays occur, and how to avoid compliance bottlenecks.
In a country as dynamic and regulation-heavy as India, that level of in-market expertise is the difference between seamless expansion and costly compliance mistakes.
What Should You Consider When Choosing an Employer of Record in India?
When you’re evaluating EORs for India, here are the must-have capabilities to look for:
- Local Compliance & Regulatory Expertise: They should deeply understand EPF, ESIC, PT, TDS, Shops & Establishments, minimum wages, gratuity, bonus, leave rules, and Indian employment contract standards.
- Entity Ownership vs. Subcontracting: EORs who own their Indian entity generally offer more control, fewer delays, and clearer accountability.
- On-the-Ground Presence: A real team in India matters. State-level compliance often requires hands-on coordination with labor authorities, especially for escalations or regulatory changes.
- Technology & Platform Capabilities: Look for seamless digital onboarding, leave tracking, expense management, automated payroll, and integrations with your HR and finance systems.
- Pricing Transparency: Ensure full clarity on EOR fees, statutory contributions, FX markup, tax handling, and any onboarding/offboarding costs.
- Payroll Reliability & Accuracy: Indian payroll is sensitive. Statutory deadlines (EPF, ESIC, PT, TDS) are non-negotiable – ensure your provider handles filings and payments flawlessly.
- Customer Support Responsiveness: You want an EOR that actually responds quickly – especially when statutory filings or tax deadlines are involved.
Estimated Cost for Hiring an Employee in India Through an EOR
Most India-focused EOR services range from $300–$650 USD per employee per month, depending on seniority, payroll complexity, and the provider.
In more compliance-heavy states or for senior roles with detailed allowances, fees can climb toward $700–$800+.
Leading Employer of Record Providers in India in 2026
Below is a curated list of the most relevant, reliable, and widely used EOR partners for hiring in India – including global platforms and India-specialized providers.
- Playroll: A global EOR with strong coverage across 180+ countries and on the ground India-specific expertise, offering fast onboarding, transparent pricing, AI-backed compliance checks, automated payroll workflows, and responsive 24/5 support. One of the most efficient and cost-effective ways to scale teams in India, with a proven track record of exceptional customer service and an intuitive, user-friendly platform. We also work closely with local specialists across multiple Indian states, giving us an edge on real-time guidance and practical insight into state-level labor laws, payroll nuances, and evolving compliance requirements.
- Skuad: A global hiring platform with a dedicated India EOR solution, providing compliant onboarding, payroll, benefits administration, and local employment guidance. A strong fit for teams prioritizing India-specific expertise and multi-state compliance support.
- Multiplier: Provides EOR services in India with fast contract generation, integrated payroll, and straightforward pricing. Useful for startups and smaller teams looking for efficient, reliable onboarding in India.
- Deel: A large global EOR operating through its own India entity, offering compliant contracts, payroll, benefits, and automated HR workflows. Known for its strong platform experience and broad integration ecosystem.
- Remote.com: A global employment platform that supports compliant hiring in India, with modern automation, employee self-service features, and guidance on Indian statutory requirements. Ideal for companies who value streamlined HR tech and intuitive workflows.
- G-P: An enterprise-grade EOR provider with an India solution that covers employment contracts, payroll, benefits, expenses, and compliant terminations. A good match for larger organizations needing structured controls and risk mitigation.
- Papaya Global: Offers EOR services across 160+ countries, including India, with a focus on payroll automation, analytics, and compliance workflows. Strong for teams wanting BI-driven payroll visibility.
- Neeyamo: An India-headquartered global HR and payroll provider with deep experience in Indian labor compliance and multinational workforce management. A dependable choice for companies seeking strong local roots paired with global delivery capacity.
- Native Teams: A global work platform offering EOR services, international payroll, contractor management, and local benefits support. Native Teams operates in multiple markets, including India, and provides local employment solutions for remote teams.
Insights from Real Users
Playroll
“We have been using Playroll as our Employer of Record (EOR) since starting operations in South Africa in 2022 and expanding to India in 2023. From day one, the experience has been exceptional. Playroll is incredibly easy to work with, and their processes are accurate and efficient, ensuring compliance and peace of mind in regions we were unfamiliar with.”
- Verified G2 User
Native Teams
“The NT platform proved to be the best solution for me to receive payments from all over the world. I have a clean overview of everything in one place.
There is still significant room for improvement in automation compared to other platforms, however I've been informed that they are working on it.”
- Verified G2 User
Why Hire in India
“Most first-time founders underestimate hidden costs. Even with planning, you’ll always discover 10 unexpected expenses in the first 6 months. Keeping 2× budget honestly reduces 70% of panic.”
- Verified Reddit User
Using an EOR vs. Setting Up an Entity in India
If you’re hiring your first employees in India, the biggest decision is whether to use an EOR or establish an Indian legal entity. Here are some simple points that’ll help you make the right decision for your business.
Use an EOR if:
- You need to hire immediately.
- You don’t want to handle EPF/ESIC/TDS/PT filings.
- You’re testing the Indian market.
- You have a small initial team (under ~20 employees).
Set up an entity if:
- You're scaling past 20–30 employees.
- You need local infrastructure, licenses, or tax optimization.
- You want long-term operational presence.
Costs to consider:
- Entity setup in India: $5,000–$15,000+
- Ongoing compliance & bookkeeping: $8,000–$25,000/year
- Multi-state compliance overheads
For most companies hiring their first Indian employees, an EOR is faster, safer, and more cost-efficient than establishing your own entity. That being said, you want to make sure you’re choosing an EOR with an in-country presence.
Boots on the ground mean strong local relationships, more comprehensive understanding of the labor laws, quick resolution of any challenges that pop up, and more accurate payroll runs.
Onboarding Process Through an EOR in India
When you partner with an EOR in India, the onboarding process becomes structured, compliant, and largely hands-off for the employer. It follows a clear sequence designed to meet national and state-level requirements while ensuring a smooth start for the employee.
1. Collecting Required Information
The EOR begins by gathering essential documents and details, including PAN, Aadhaar, bank information, and any role-specific data needed for the employment contract. In sectors such as IT, finance, or roles involving sensitive data, background checks may also be initiated.
2. Issuing a Locally Compliant Employment Contract
The EOR prepares and issues an India-specific employment agreement that aligns with statutory requirements, notice rules, leave entitlements, Shops & Establishments provisions, and role expectations. The employee signs directly with the EOR’s Indian entity.
3. Completing Statutory Registrations
The EOR handles all mandatory compliance steps, such as:
- Registering the employee under EPF or ESIC, where applicable
- Managing state-specific requirements, including Shops & Establishments registration and Professional Tax
- Ensuring alignment with local wage laws, gratuity eligibility, and bonus obligations
4. Setting Up Payroll and Benefits
Once compliance is in place, the EOR finalizes operational setup:
- Enrolling the employee in benefits such as health insurance or statutory leaves
- Configuring payroll with accurate TDS calculations and deductions
- Ensuring salary is paid in INR, on India’s standard monthly payroll cycle
5. Fast, Seamless Activation
Because the EOR manages every compliance and administrative step through its in-country entity, onboarding moves quickly. Most employees are ready to begin work within 24–72 hours, depending on documentation and role requirements.
Compliance Considerations for Hiring Employees in India
Hiring in India means navigating a blend of detailed legal requirements and strong local workplace expectations – and both can vary from one state to another.
While each region has its own nuances, there are several consistent themes across the country that employers should keep in mind when building a compliant and competitive employee experience.
Key Takeaways
Hiring in India opens the door to incredible talent and huge growth potential. But navigating labor laws, payroll rules, and state-by-state regulations can get complicated fast. That’s where having the right EOR partner really matters. If you’re looking for speedy onboarding, accurate statutory filings, clear pricing, and standout customer support, Playroll brings it all together in one easy-to-use platform.
But at the end of the day, the “best” EOR for your business comes down to what you value most – whether that’s local compliance expertise, powerful technology, competitive pricing, or white-glove service. The right partner will help you hire quickly, stay compliant, and move forward with confidence.
Curious what that looks like in action? Book a demo with Playroll and see why we’re the smartest choice for your India expansion.


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