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Expand your global workforce in India

Your guide to the employment landscape, working customs and local labor laws in

Capital

New Delhi

Currency

Indian Rupees (INR)

Languages

Hindi, English

GDP per Capita

$2,802.53

Employer Tax

15.25%

Payroll Frequency

Monthly

Talent overview

India’s developing economy has led to the country’s success in the global market. They are projected to be one of the world’s most significant economic powers due to their successful partnerships and investments. Since the 2000s, their upward economic trajectory has lifted more than 90 million citizens from poverty and has provided jobs for the working population.

Major economic hubs:

New Delhi, Mumbai, Calcutta, Chennai

Skills in demand:

AI, Networking Development, Algorithm designer, Cloud computing, UI designer, Coding and software skills

Top local universities in India

Uni1 35

Indian Institute of Technology Bombay

Ranking:

Local: 1

World: 519

IIT Kanpur

Indian Institute of Technology Kanpur

Ranking:

Local: 2

World: 526

University of Delhi

University of Delhi

Ranking:

Local: 3

World: 871

Uni3 36

Indian Institute of Technology Madras

Ranking:

Local: 4

World: 897

Uni4 35

Indian Institute of Technology Delhi

Ranking:

Local: 5

World: 945

Top Local Job Boards:

Naukri, Indeed, FreshersLive, monsterindia.com , shine.com, workindia

Number of LinkedIn users:

109,200,000

Multiplier Recruitment Partner:

Uplers 

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Some top jobs found in India and their monthly salary are listed below:

Job Title Average Monthly Salary (INR) Average Monthly Salary (USD)
Financial Manager 62,700 INR 765 USD
General Manager 55,400 INR 676 USD
Business Development Manager 49,900 INR 609 USD
Business Analyst 39,400 INR 481 USD
Financial Analyst 40,400 INR 493 USD
Project Manager 35,600 INR 434 USD

Employ in India

Employing in India

India is filled with world class employees and highly skilled professionals. But before tapping into the country’s talent pool, employers must first navigate their way through the employment laws and regulations. The succeeding sections should help you with the basics when onboarding workers from India.

Employee Contract

In India, employee contracts must be in a language understood by both contracting parties. Contracts are generally in English, provided that both parties understand it.

Probation Period

The Probation Period for Indian employees can last up to 6 months.

Public and Provincial Holidays

Date Name Type
January 26 Republic Day National Holiday
February 26 Maha Shivaratri/Shivaratri National Holiday
March 14 Holi National Holiday
March 31 Ramzan Id/Eid-ul-Fitar National Holiday
April 10 Mahavir Jayanti National Holiday
April 18 Good Friday National Holiday
May 12 Buddha Purnima/Vesak National Holiday
June 7 Bakrid/Eid ul-Adha National Holiday
July 6 Muharram/Ashura National Holiday
August 15 Independence Day National Holiday
August 16 Janmashtami National Holiday
September 5 Milad un-Nabi/Id-e-Milad National Holiday
October 2 Mahatma Gandhi Jayanti National Holiday
October 2 Dussehra National Holiday
October 20 Diwali/Deepavali National Holiday
November 5 Guru Nanak Jayanti National Holiday
December 25 Christmas National Holiday
March 31 Ramzan Id/Eid-ul-Fitar Local Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 15 days Yes
Sick Leave 12 days Yes
Maternity Leave 26 weeks Yes

Leave Compliance

Payroll in India

Tw Payroll Img1

Payroll cycle

The payroll cycle in India is monthly. 

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Minimum wage

Minimum wage in India varies per state and with industry associated. However, the national floor level minimum wage across the country is 178 INR per day.

Tw Payroll Img3

Overtime pay

The standard working hours in India are 9 hours per day and 48 hours per week. Including overtime, the maximum working hours must not exceed 60. Furthermore, the overtime hours per quarter must not exceed 50. Employers must compensate for the overtime at 200% of the regular hourly rate.

How taxes work

Employer Payroll Tax

Type of contribution Contribution
EPF + EPS 12%
ESI 3.25%
Total cost on employer 15.25%

Employee Payroll Tax

Type of contribution Contribution
EPF 12%
ESI 0.75%
Total cost on employee 12.75%

Employee Income Tax

Taxable Income (Indian Rupees, INR)     Tax Rate     
Income up to 300,000 No tax
Income between 300,001 – 600,000 5%
Income between 600,001 – 900,000 10%
Income between 900,001 – 1,200,000 15%
Income between 1,200,001 – 1,500,000 20%
Income above 1,500,000 30%

Health and education cess is levied at 4% of the income tax and surcharge.

VAT

VAT in India is referred to as the Goods and Services Tax (GST). Rates range from 5% to 28%, depending on the goods and
services.

Bonus

Employee Benefits

The Indian government has set statutory benefits for their employees to ensure that they get the best out of their employment. Below are some of the benefits:

  • Employee Provident Fund (EPF)
  • Employee Pension Scheme (EPS)
  • Employee State Insurance (ESI)
  • Maternity leave

Employee offboarding

In India, the termination process may vary from one employer to another and mostly follows the terms indicated in the employment contract. 

The notice period for employees under probation is up to 30 days. Employers must give a notice of at least 60 days to their employees before termination.

Severance Pay in India varies ​​based on duration of employment, performance and salary. Below are the rates:

Employee Classification Severance Pay
Workman 15 days’ worth of average pay for each year worked
Workman of a factory, mine or plantation with 100+ workers 15 days’ worth of average pay for each year worked
Non-worker Determined by the employment contract
Employee (workman or non-worker) that is dismissed due to misconduct No severance pay
Tw Visa Img

Visa and
immigration

Foreign employees in India must secure a work visa to legally work in the country. The visa’s validity may vary from 6 months to 5 years. For investors looking into operating their business in the country, they must apply for a business visa. 

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