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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

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in India

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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.

This guide was last updated on 15 April 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Employment contracts in India may be structured as fixed-term or open-ended agreements. While written contracts are not legally mandatory, they are strongly recommended and typically include the following key terms:

  • Name and address of employer and employee;
  • Job title or nature of work;
  • Date of joining and work location;
  • Probation clause;
  • Working hours;
  • Leave entitlements;
  • Remuneration and benefits;
  • Termination clauses;
  • Non-compete clause (if applicable);
  • Others.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Social Security Type Wage Ceiling Employee Contribution Employer Contribution
Employees’ Provident Fund (EPF) INR 15,000/month 12% or 10%* 3.67%
Employees’ Pension Scheme (EPS) – 8.33%
Employees’ Deposit Linked Insurance (EDLI) – 0.50%
Administrative Charges – – 0.50%
Employees’ State Insurance (ESI)* General: INR 21,000/month Disabled: INR 25,000/month 0.75% 3.25%
Labour Welfare Fund (LWF) Varies by state

*Notes:

  • Employee EPF contribution is reduced to 10% in the following cases:

    • Enterprises with fewer than 20 employees;
    • Enterprises incurring losses exceeding net assets;
    • Specified industries such as jute, brick, coir, guar gum, etc.

  • Employer’s EPS contribution ceases under the following conditions:

    • When the employee is over 58 years of age;
    • When a pension recipient re-enters employment.
  • The Employees’ State Insurance (ESI) scheme currently covers 668 districts across 36 states and union territories, with 135 districts remaining uncovered.

Minimum Wage

India does not have a single national minimum wage; instead, it is determined across multiple dimensions:

  • Skill level: Categorised as unskilled, semi-skilled, skilled, and highly skilled, with higher skill levels generally attracting higher wages.
  • State/region: Each state or region may prescribe its own minimum wage rates and revise them periodically.
  • Industry/occupation: Minimum wages vary depending on industry risks, working conditions, and occupational requirements.

Note:
Minimum wage typically comprises the basic wage plus Dearness Allowance (D.A.), an inflation-linked component adjusted periodically to offset increases in the cost of living and help preserve employees’ real purchasing power.

Public Holidays

The public holidays listed below are national public holidays observed across India. Individual states and territories may observe additional public holidays. Please refer to official government announcements for the latest updates.

  • Republic Day
  • Dolyatra/Holi
  • Ramzan/Id-ul-Fitr
  • Ram Navmi
  • Mahavir Jayanti
  • Good Friday
  • Buddha Purnima
  • Id-ul-Zuha/Bakird
  • Muharram
  • Independence Day/Raksha Bandhan
  • Milad-un-Nabi or Id-e-Milad/Birthday of Prophet Mohammad
  • Janmashtami/Vaishnva
  • Mahatma Gandhi’s Birthday/Maha Saptami
  • Dussehra
  • Diwali/Deepavali/Naraka Chaturdasi
  • Guru Nanak’s Birthday
  • Christmas Day

Working Hours

Normal Working Hours

CategoryDailyWeekly
Factory Workers9 hours48 hours
Shop / Service / Office Staff (varies by state)Generally 8 – 9 hoursGenerally 48 hours

Leave

Annual Leave

  • Applicability: Single-employer arrangement

  • Eligibility and duration:

    • Factory workers: Eligible in the following year upon completing ≥180 days of service in a factory during a calendar year;

      • Adult workers: 1 day of leave for every 20 days worked;
      • Minor workers: 1 day of leave for every 15 days worked.
    • Shop / service / office staff: No national standard; entitlements vary by state, generally ranging from 12 to 18 days per year.
  • Pay: Full pay, borne by the employer.
  • Encashment: Unused annual leave must be fully compensated upon termination of employment.

Sick Leave

  • Eligibility and duration: No national standard; varies by state, typically 6–12 days per year.
  • Pay: Full pay, borne by the employer.

Maternity Leave

  • Eligibility: Employee must have worked for at least 160 days in the 12 months preceding the expected date of delivery.

  • Duration:

    • 26 weeks, with up to 8 weeks before delivery;
    • For mothers with two or more surviving children: 12 weeks, with up to 6 weeks before delivery;
    • Surrogate mothers: 12 weeks.
  • Pay: Full pay, borne by the employer.

Other Leave Types

  • Casual Leave: No national standard; varies by state, generally 7–12 days per year; paid.
  • Miscarriage Leave: Female employees are entitled to 6 weeks of leave immediately following a miscarriage, subject to medical certification; paid at the same rate as maternity leave.
  • Pregnancy-related illness leave: Female employees are entitled to up to 1 month of leave for illness arising from pregnancy, delivery, premature birth, or miscarriage, subject to medical certification; paid at maternity leave rates.
  • Nursing breaks: Female employees returning to work are entitled to two nursing breaks per day until the child reaches 15 months of age; paid.
  • Adoption leave: Employees adopting a child under 3 months of age are entitled to 12 weeks of leave; paid at maternity leave rates.
  • Creche facility: Establishments with ≥50 employees must provide a creche facility (standalone or shared with other establishments). Eligible female employees may access the creche up to four times per day, including during rest intervals.

Termination and Compensation

Notice Period

For employees with continuous service of at least one year with the employer: one month’s prior notice is required, or payment in lieu of notice may be provided.

Compensation

  • Under the Industrial Disputes Act, 1947: Employers are required to pay retrenchment compensation to a “workman” in the event of retrenchment or dismissal. Compensation is calculated as 15 days’ average wages for each completed year of continuous service. For non-workmen, compensation is determined by mutual agreement between the parties.
  • Under the Payment of Gratuity Act, 1972: Employers must pay gratuity to employees with at least five consecutive years of service upon termination due to retirement, resignation, death, or disablement arising from accident or illness. Gratuity is calculated as 15 days’ average wages for each completed year of service, subject to a maximum of INR 2,000,000.
  • Additional considerations: Final payout amounts may vary depending on tenure, employment contract terms, industry practices, and the nature of employment.

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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