Talent Wiki - India
Your quick guide on talent and labor compliance norms in India
Capital
New Delhi
Currency
Indian Rupees (INR)
Languages
Hindi, English
Payroll Frequency
Monthly
GDP per Capita
$2465.87
Employer Tax
15.25%
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:
Local: 1
World: 590
Indian Institute of Technology Kanpur
Ranking:
Local: 2
World: 704
University of Delhi
Ranking:
Local: 3
World: 786
Indian Institute of Technology Madras
Ranking:
Local: 4
World: 837
Indian Institute of Technology Delhi
Ranking:
Local: 5
World: 867
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 | 758.16 USD |
| General Manager | 55,400 INR | 669.89 USD |
| Business Development Manager | 49,900 INR | 603.38 USD |
| Business Analyst | 39,400 INR | 476.42 USD |
| Financial Analyst | 40,400 INR | 488.51 USD |
| Project Manager | 35,600 INR | 430.47 USD |
Talent Sourcing Tips
Top Local Job Boards:
Naukri, Indeed, FreshersLive, monsterindia.com , shine.com, workindia
Number of LinkedIn users:
96,890, 000
Multiplier Recruitment Partner:
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 2023
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 | Type |
| 1 Jan | New Year | Restricted holiday |
| 14 Jan | Pongal | Restricted holiday |
| 26 Jan | Republic Day | Restricted holiday |
| 8 Mar | Holi | Gazetted Holiday |
| 7 Apr | Good Friday | Gazetted Holiday |
| 22 Apr | Id-Ul-Fitr | Gazetted Holiday |
| 29 Jun | Bakrid | Gazetted Holiday |
| 29 Jul | Muharram | Gazetted Holiday |
| 15 Aug | Independence day | Restricted holiday |
| 19 Sep | Ganesh Chathurthi | Restricted holiday |
| 2 Oct | Gandhi Jayanthi | Restricted holiday |
| 24 Oct | Dussehra | Gazetted Holiday |
| 1 Nov | Karnataka Rajyotsava | Restricted holiday |
| 12 Nov | Diwali | Restricted holiday |
| 13 Nov | Day after Diwali | Gazetted Holiday |
| 25 Dec | Christmas | Gazetted Holiday |
Note: India Holiday List 2023 Statewise
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 12 days | Yes |
| Sick Leave | 14 days | Yes |
| Maternity Leave | 26 weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle in India is monthly.
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.
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.
Bonus
13th Month Pay
In India, 13th month pay is mandatory. The pay is a percentage of the salary and must be released within 8 months from the end of the financial year.
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
Taxes
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
| Income tax slab | Old Regime | New Regime | ||
| Individuals, HUF & NRIs under 60 years | Individuals & HUF between 60 to 80 years old | Individuals & HUF above 80 years old | All individuals & HUF | |
| Up to INR 2,50,000 | 0% | 0% | 0% | 0% |
| INR 2,50,001 – INR 3,00,000 | 5% | 0% | 5% | 5% |
| INR 3,00,001 – INR 5,00,000 | 5% | 0% | ||
| INR 5,00,001 – INR 7,50,000 | 20% | 20% | 20% | 10% |
| INR 7,50,001 – INR 10,00,000 | 20% | 20% | 20% | 15% |
| INR 10,00,001 – INR 12,50,000 | 30% | 30% | 30% | 20% |
| INR 12,50,001 – INR 15,00,000 | 30% | 30% | 30% | 25% |
| Above INR 15,00,000 | 30% | 30% | 30% | 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.
Offboarding & Termination
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. For regular employees, notice period will be up to 3 months.
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.
