.png)
* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
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.
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:
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.
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.
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.
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!
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.
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.
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.
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:
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!
Employees may be eligible for severance pay depending on the cause of termination:
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:
Indian legislation ensures employees have access to the following benefits:
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 and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.
Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.
.webp)
Access a free set of tools to navigate international hiring across 180+ countries, while staying up to date on hiring news with global insights into the changing employment landscape from Playroll.
.png)
