Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - India

Your quick guide on talent and labor compliance norms in India
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Capital
New Delhi
Currency
Indian Rupee (INR)
Languages
Hindi, English
Payroll Frequency
Monthly
GDP per Capita
$2312
Employer Tax
16.75%

Supplementary Guide for Employment and Expansion in India

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

Local Universities

The top local universities in India include:

Indian Institute of Technology Bombay

RANKING

India : 1

World : 500

Indian Institute of Science Bangalore

RANKING

India : 2

World : 524

Indian Institute of Technology Madras

RANKING

India : 3

World : 559

Indian Institute of Technology Delhi

RANKING

India : 4

World : 581

Indian Institute of Technology Kharagpur

RANKING

India : 5

World : 603

Salary Data

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

No. Job Title Salary Range (in INR) Salary Range (in USD)
1 Financial Analyst 20,200 - 62,600 259.76 - 805.00
2 Business Analyst 19,700 - 61,100 253.33 - 785.71
3 Chief Financial Officer 35,400 - 99,000 455.22 - 1,273.08
4 Project Manager 18,900 - 54,200 243.04 - 696.98
5 Human Resource Manager 25,700 - 71,700 330.49 - 922.02
6 Developer/Programmer 14,200 - 49,100 182.60 - 631.39

Talent Sourcing Tips

Top Local Job Boards:

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

Number of LinkedIn users:

89,890,000

Multiplier Recruitment Partner:

Uplers

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

India has 3 national holidays. Apart from that, the country also follows some government holidays as listed below, some of which may vary depending on the location.

Date Name
1 Jan New Year
14 Jan Pongal
26 Jan Republic Day
2 Apr Ugadi
15 Apr Good Friday
3 May Ramzan Id/Eid-ul-Fitr
11 Jul Bakr Id/Eid ul-Adha (Tentative Date)
8 Aug Muharram/Ashura (Tentative Date)
15 Aug Independence Day
31 Aug Ganesh Chathurthi
2 Oct Mahatma Gandhi Jayanti
5 Oct Dussehra
24 Oct Diwali/Deepavali
1 Nov Karnataka Rajyotsava
25 Dec Christmas

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 18 days Yes
Sick Leave 12 days Yes
Maternity Leave 26 weeks Yes

Payroll

Payroll Cycle

Salary is paid monthly in India. 

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Minimum Wage

Minimum wage in India varies per state and with industry associated. As of 2022, the national floor level minimum wage across the country is 178 INR per day.

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Overtime Pay

Employees doing overtime work are generally paid  twice the rate of their normal working salary.

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Health Examination Clause

Bonus

13th Month Pay

A 13th month pay is not mandatory in India.

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
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Taxes

Employer Payroll Tax

Tax item % contribution
EPF + EPS 12%
ESI 4.75%
Total cost on employer 16.75

Employee Payroll Tax

Tax Item % contribution
EPF + EPS 12%
ESI 1.75%
Total cost on Employee 13.75%

Employee Income Tax

Income Tax on Income Tax %
0 - 250,000 - 0%
250,000 - 500,000 - 5%
500,000 - 1,000,000 12,500 20%
1,000,000 and above 112,500 30%

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

VAT

VAT in India is referred to as the Goods and Services Tax (GST). Rates range from 0% to 28%.

Offboarding & Termination

Termination Process

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

Notice Period

The notice period for employees under probation is up to 30 days. For regular employees, notice period will be up to 3 months.

Severance Pay

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

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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