* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
New Delhi

Indian Rupee (₹)


IST (GMT +5:30)

Employment Cost


Annual Leave

15 days

In-demand Specialties*
Medical Professionals, Data Scientists, Machine Learning Experts

The Ultimate Guide to Hiring Employees in India

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In India

Employing in India requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in India with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in India quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

India's rapid economic growth is highlighted by a projected GDP surge to 5 trillion USD by 2025 and an anticipated 8.4 trillion USD by 2030. This growth is fueled by a diverse business sector, offering companies in various industries opportunities to expand their global market presence.

Ranking second only to China, India possesses the world's second-largest online marketplace; boasting a user base of over 560 million. The country's connectivity is expected to surpass 850 million by 2025, exceeding the combined population of all G7 nations, thanks to its expanding population.

India takes pride in its robust legal framework, safeguarding the rights of employees, including those working remotely. This framework ensures a secure and stable working environment, offering legal protections against discrimination, harassment, and unfair treatment for both employers and employees.

With a large English-speaking population, India emerges as an optimal location for companies seeking skilled and fluent English communicators. The country's favourable geographical location and time zone enhance communication and collaboration, promising high-quality interactions with employees in India.


Fundamental Aspects of Employment in India

In India, though written employment contracts are not mandatory, the Industrial Employment Act of 1946 requires documentation of specific formalities. Fixed-term contracts are allowed for short-term roles, but consecutive short-term contracts are not permitted. Employment agreements must include the following:

  • Job duties and responsibilities
  • Compensation details, written in Indian Rupees (including benefits, bonus pay and options for retirement savings plans)
  • Working hours, holidays and leave entitlements
  • Terms of employment (where applicable and provisions for termination)
  • Dispute resolution clauses concerning key employees

Probationary Period in India

In India, probation periods typically last 3 to 6 months, depending on the employee's role and seniority. While a 3-month probation is suggested by the Industrial Employment Act of 1946, it's not mandatory, allowing employers to decide based on job needs. This practice is widely used to assess employee performance. Some Indian states also include probation provisions in local labor laws, adding complexity to employment rules.

Working hours in India

In India, the typical workweek is 40 hours, with 8 hours per day. It can be extended to 48 hours, including breaks, only with client approval and careful consideration of legal requirements and job needs. The private sector often follows state Shops and Establishment Acts (SEAs), which cover working hours and other employment conditions. SEAs are crucial for balancing employer and employee interests and ensuring compliance with labour laws, making them essential for both employers and employees in India.

Overtime in India

Hours worked beyond the standard 48 hours are compensated as overtime and are governed by employment agreements. As per India’s Minimum Wages Act of 1984, overtime is paid at a rate of 200% of the regular pay, although specific states in India may adjust these limits regionally.

Navigating Key Aspects of Payroll in India

India has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 April - 31 March

Fiscal Year in India

1 April - 31 March is the 12-month accounting period that businesses in India use for financial and tax reporting purposes.

Payroll Cycle in India

The payroll cycle in India is usually monthly, with employees being paid on or after the 28th of each month.
22.25 INR p/h

Minimum Wage in India

The minimum wage for employees in India is typically 22.25 INR per hour, amounting to ~3,560 INR per month for a typical 40 hour work week.

Minimum wages and salaries in India

The national minimum wage in India differs across states, so there is no nationally applicable minimum wage for all employees. This is based on the intricate structure of minimum wages differing based on state, industry and skill. Let us know if you would like more information on minimum wage in India!

Bonus Payments in India

Low-income workers in India are required to receive 13th-month salary, calculated as a percentage of their annual income and paid within eight months after the financial year concludes.

Comprehensive Overview of Employment Taxes in India

Understanding the tax obligations for both employers and employees is crucial when operating in India's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in India.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.75% on top of the employee salary in India.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In India, the typical estimation for employee payroll contributions cost is around 18.08%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In India, individual income tax is determined using progressive rates, ranging from 5% to 30%. There are two regimes available: the New Personal Tax Regime (NPTR) outlined below, and the old regime, allowing taxpayers to opt for either of the two.

Tax Rate Income Bracket

Pension in India

In India, the retirement age - set between 58 and 60 years - is regulated by the Employees Provident Fund Act of 1952 and the Industrial Employment Act of 1946. Both employer and employee contribute 12% to the Employees’ Provident Fund Scheme (EPFS) and other funds, covering pension and deposit-linked insurance for the employee.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in India tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in India

When it comes to terminating employment in India, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In India, employment termination can be executed "at-will" or without cause; primarily determined by the terms of the employment agreement, provided that adequate notice and severance pay are given. Compliant termination include:

  • Voluntary termination by the employee
  • Mutual agreement
  • Unilateral decision by the employer (in cases of probation period, breach of duties, responsibilities and serious default or misconduct violating agreement terms)
  • Contract expiration

Notice Period

The minimum notice period for regular dismissal is at least 30 days or 1 month. However, this may differ depending on the specific regulations in each state of India. You can get in contact with us if you'd like more information on this!

Severance Pay

Employees may be eligible for severance pay depending on the cause of termination:

  • Redundancy: 15 days' average salary for each year of service or part thereof exceeding 6 months
  • Misconduct-based termination: no entitlement to notice pay or severance pay
  • Dismissal: paid termination benefits, including accrued leave, gratuity payment (for employees with more than 5 years of service), payment in lieu of notice (if no notice is given), statutory bonus payment, and other amounts specified in the employment contract

Annual Leave Entitlements and Company Policies in India

The annual leave entitlement in India is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in India

In India, public holidays differ across states, typically outlined in employment contracts. However, many states mandate 10 public holidays annually, including paid time off for voting. Some are obligatory national holidays, while employers choose others from a broader list provided by the state. The prescribed holidays in India are as follows:

Holiday Date

Paid Time Off in India

Maternity Leave in India

Paternity Leave in India

Sick Leave in India

Parental Leave In India

India's Benefits Built Into Playroll

Competitive benefits package in India

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in India's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In India

Make your benefits package in India a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in India

Playroll allows you to provide localized benefits for employees in India within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in India create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for India

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in India.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!