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Global Expansion Guide

India

Manage and pay your employees easily with BIPO in India and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Indian Rupee (INR)

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Language

Hindi, English

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Capital

New Delhi

Employer of Record India

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in India

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  • Global Hiring Guide
  • India

Employer of Record India

Embark on your business expansion in India with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Indian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Employment contract type: fixed-term and indefinite contracts.

The employment contract should be signed in written form with the following:

  • Name and address of the employer and the employee
  • Job title or nature of work (or job description)
  • Date of employment and work location
  • Probationary period and terms
  • Working hours
  • Salary and benefits
  • Contract type
  • Termination of employment and notice period
  • Leave entitlement
  • Conditions under which the employer can terminate the contract
  • Post-employment agreements: such as non-compete clauses (if any)
  • Confidentiality, intellectual property and non-compete agreements etc. (if any)

Statutory Contributions

Item  Detail  Employer Contribution  Employee Contribution
Employee Pension Fund (EPF) Retirement benefits 8.33%+0.5% EDLI administration charges –
Provident Fund (PF) Retirement benefits, survivors’ pension 3.67%+0.5% administration charges 12%
Employees’ State Insurance (ESI) Health benefits 3.25% 0.75%
Labour Welfare Fund (LWF) Supplemental social security Rates are varied by states and territories Rates are varied by states and territories
Total  About 16.25%  About 12.75%

Minimum Wage

The statutory minimum wages of India are varied across states and territories.

States and Territories

  • The central government sets minimum wages for specific industries and occupations under its jurisdiction, including railways, mines, ports etc.
  • However, most industries and occupations under every state or territory jurisdiction have their own minimum wages set by state / territory governments respectively.

Industries and Positions

  • The minimum wage standard in India are set differently not only by the state or territory, but also by the type of industry and occupation the worker is engaged in.
  • For example, the minimum wage for an agricultural worker may be different from the minimum wage for an industrial worker.

Skill Level and Nature of Work

For example, highly skilled workers such as engineers and doctors receive a higher minimum wage than semi-skilled or unskilled workers such as assistants or cleaners.

Public Holidays

In 2025, the federal statutory holidays and gazetted holidays are shown as follows. Please refer to the announcement of every state or territory jurisdiction for details.

Holiday Name Date 
Republic Day 26 January 2025
Maha Shivaratri 26 February 2025
Dolyatra/Holi 14 March 2025
Ramzan/Id-ul-Fitr 31 March 2025
Mahavir Jayanti 10 April 2025
Good Friday 18 April 2025
Buddha Purnima 12 May 2025
Id-ul-zuha/Bakird 7 June 2025
Muharram 6 July 2025
Independence Day/Raksha Bandhan 15 August 2025
Janmashtami/Vaishnva 16 August 2025
Milad-Nabi or Id-e-Milad/Birthday of Prophet Mohammad 5 September 2025
Mahatma Gandhi’s Birthday/Maha Saptami 2 October 2025
Diwali/Deepawali/Naraka Chaturdasi 20 October 2025
Guru Nanak’s Birthday 5 November 2025

Working Hours

Normal Working Hours

Depending on the state in which the workplace is located, normal working hours can be 8 or 9 in a day and 48 in a week.

Rest Time

  • According to the state-specific , meal or rest breaks of half an hour to an hour are required for employees working a continuous period of four or five hours.
  • The total number of hours worked by a worker without an interval should not exceed six hours.
  • Shift employees must have at least one rest day per week and a minimum of 12-hour break between two shifts. The rest day is ordinarily Sunday, but the employer may fix any other day of the week as the rest day for any employee based on negotiation.

Night Work

  • The night working hours are between 7:00 pm one day and 6:00 am the next day.
  • In India, legislations such as the “Plantation Labour Act 1951”, the “Factories Act 1948”, and state-specific “Shops and Establishments Act” contain provisions restricting night work for women.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • Employees covered by the are entitled to double pay for hours worked excluding their normal working hours.

  • According to the “Factories Act 1948” and state-specific “Shops and Establishments Act”, any work beyond normal working hours is considered overtime and entitled to overtime pay.

    • Employees in shops and establishments:

      • In most states and territories, the maximum working hours in a day is 12 hours, limiting the maximum overtime in a day to 2 hours.
      • In most states and territories, an employee may not be required or even allowed to work on a scheduled rest day unless he or she has or will have a substitute rest day on a normal working day.

    • Workers in factories:

      • If a worker is employed in a factory, the provisions of the “Factories Act 1948” apply. A worker who works more than 9 hours in a single day or 48 hours in a single week, he or she is entitled to double pay of the ordinary rate of wages.

Other Regulations

  • If an employee cannot take a leave due to work, he or she can choose to take a time-off-in-lieu on another working day.
  • Usually, the employer will require the employee to take the time-off-in-lieu within 4-8 weeks, otherwise the entitlement will be forfeited.
  • The minimum legal age for employment in India is 14 years of age.
  • The employer should keep electronic or other form of employment records of every employee, which includes their normal working hours, rest days, wages, leave and overtime information. Whether in electronic or paper form, the archive period is stipulated by the relevant government.

Probationary Period

The general market trend in India is to set a probationary period between 3 and 6 months, especially in the technology and services sectors.

Leave

Statutory leaves in India include:

Type  Applicable to  Details 
Paid Annual Leave (Privilege Leave) All Employees Average 18 days (varied by states and territories)
Pregnancy and Maternity Leave Female Employees 12-26 weeks (depending on the length of employment, numbers of employees, and the number of children)
Adoption Leave Employees who adopt children under 3 months of age 12 weeks
Paid Sick Leave All Employees Average 15 days (varied by states and territories)
Personal Leave Employees in some states 3-6 days (varied by states and territories)

Termination and Compensation

Notice Period

Employees who have served for at least one year of continuous service are entitled to a notice period of one month, or equivalent payment-in-lieu instead.

Compensation

Payment of Gratuity:

  • The “Payment of Gratuity Act 1974” provides that any employee who has served continuously for five years is entitled to a payment of gratuity equivalent to 15 days’ wages; the Act provides for the payment of a lump-sum gratuity to an employee upon retirement, resignation, death or disability caused by accident or disease. The amount of gratuity payable is calculated based on the employee’s last received salary and the length of service.

Retrenchment compensation:

  • The “Industrial Disputes Act 1947” provides that in case of dismissal or retrenchment, a worker is entitled to redundancy compensation equal to 15 days’ average wages for every year of service. For non-worker, the compensation is fixed by mutual agreement between the employer and the employee.
  • The amount of compensation also depends on the employee’s tenure with the employer and the terms of his or her employment contract. And it may be varied by industries, types of employment, and other factors.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Indian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with India’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to India’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with India’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in India

Unlock your growth potential with BIPO’s Employer of Record service in India. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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