Salary Information
Indian rupee (₹)
Not required by law
On or before the 7th of the next month if the employee’s salary is above 1000INR per month. Otherwise, it will be on or before the 10th day of the month per the statutory norm. However, best practice is to pay on the last working day of the month.
The tax deducted at source from the salary TDS is required to be paid on the seventh of the next month, or else incur a penalty.
Minimum wage 176 INR. But in India, the minimum wage changes depending on what state the work is taking place in and at what skill level the employee in question has.
Salary is paid out in 12 equal instalments.
General Benefits
If an employee’s salary is more than 21000INR per month, there’s no state health insurance, and most companies provide an insurance cover to the employees using any of the major providers on the market.
In India, Employee State Insurance Corporation (ESIC) runs the employee health insurance scheme for employees who receive monthly salary equal to or less than 21.000INR.
The employee gets medical services provided by hospitals that are run by the government. The employee also receives life insurance coverage for death while working in the company premises.
Total employer cost is 16% of the employee’s gross wages. This is made up of 4% for healthcare and 12% goes towards pension (provident fund).
Healthcare and pension contributions are mandated by the government to make up the social security system in India.
Pension fund is known as EPF (Employees’ Provident Fund Organisation) and is managed by central government. Contribution to this fund is made by the employee and the employer equally. Each employee is provided a Universal Account Number (UAN), meaning the employee’s provident fund contribution remains in one account even in the occurrence of multiple job changes.
Leave
The employer isn’t required to pay any sickness allowance to employees. However, employees are entitled to apply for paid sickness leave. They may have up to 15 paid sick days per year, paid at 70% of their average daily wage.
An employee must provide a medical certificate from a doctor if they’re absent from work for more than three consecutive days. In the case of an employee having an emergency or sudden sickness, they must notify the employer immediately.
Progressive employers offer health insurance policies from any well-known insurance agency for employees who aren’t covered under the ESIC scheme.
Work-related injury leave is available to any employee who becomes temporarily disabled. They’ll receive 50% of their usual pay.
Maternity leave is only required to be given to employees who have worked for the employer at least six months prior to the delivery date. Women receive 100% of their average wages in the six months prior to the birth for a total of 26 weeks for their first two children and then for a total of 12 weeks for every child after that.
Paternity leave isn’t yet legalised in India but based on many employer decisions, the employer usually provides five to 15 days of paid leave to male employee as paternity leave.
Other Contractual Provisions
It’s possible for contracts to be signed electronically and there’s no legal requirement to execute an original contract or for the contract to be signed prior to the hire date.
The probationary period in India is one to six months.
Normal working hours are considered 45 to 48 hours per week.
Most state laws require a rest break of 30 to 60 minutes every four to five hours of consecutive work. It’s normal to give employees an hour lunch break during a full working day.
Overtime is usually paid at 200% of the employee’s usual rate.
Work-related injury leave is available to any employee who becomes temporarily disabled. They’ll receive 50% of their usual pay.