India
Hire Employees & Contractors

India

Compliantly hire your distributed team members in

India

Person working on laptop

Hiring in

India

isn't so simple. Borderless can help.

To hire new employees in

India

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

India

while staying fully compliant with local laws and compliance.

Primary Language

English, Hindi

Currency

Indian Rupee (₹, INR)

Payroll Frequency

Monthly

Public Holidays

3 nationally recognized but region-to-region there could be upwards of 25

Employer Taxes

20.33%

Cost of Living Index

$$ (138 of 140, 2023)

Statutory Leave

18 days

Sick Leave

12 days

Maternity Leave

26 weeks (8 weeks before birth)

Important: Risks of misclassification

In many countries like

India

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in India is INR 32,840 per month, though varies greatly by region.

*Note: The minimum wage in India is complex. There is no statutory minimum wage for organizations in the private sector outside of regulated “factory” sectors.

Overtime Pay

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

In most roles, there are no federal requirements for overtime pay, however, additional overtime pay is mandated for all factory workers with industry practice being to compensate employees that work overtime with additional pro-rated PTO or to provide overtime pay at twice the employees' standard pay rate.

Additional Pay

There are no additional pay requirements in India.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

20.33%

  • 12%: Employees’ Provident Fund
  • 8.33%: Employees’ Pension Scheme

Employee Costs & Taxes

  • 0 - 30%: Personal Income Tax

Employment Information

Termination Process

Indian employers can terminate employment agreements for the following reasons:

  • Employee resignation
  • Employee retirement
  • Non-renewal of the employment contract or expiry
  • Dismissal of the employee due to serious employee misconduct (ex. theft, fraud, etc.)
  • Collective termination due to economic conditions (ex. bankruptcy, restructuring, etc.)

Notice period

For employees terminated for reasons other than misconduct, a notice period of 30 days is required given that the employee has been continuously employed for 3 months or more.

Probation Period

Indian law contains no mandate surrounding minimum or maximum probation periods. Industry standard, however, sets probation periods that last anywhere from 2 to 6 months.

Severance Details

Depending on the reason for their termination, employees in India may be entitled to severance pay:

  • Termination due to redundancy - Employees are entitled to severance pay equivalent to 15 days' of pay at their average pay rate for every 1 year of continuous service or part thereof in excess of 6 months
  • Employees who are dismissed - Employers must pay termination benefits including leave accrued, gratuity payment (for employees with over 5 years of continuous service), payment in lieu of notice (if no notice is given), statutory bonus payment, and any other amounts due under the employment contract.
  • Employees who are terminated due to misconduct - Employees are not entitled to notice period or severance pay
Benefits of working in a country abroad

Borderless Benefits Packages in

India

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

India

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo