Employer of Record Services in India

Yes. We register and remit Provident Fund (EPF, typically 12% employer and 12% employee), Employees’ State Insurance (ESI) where applicable, Professional Tax (state-specific), and monthly Tax Deducted at Source (TDS) under the Income-tax Act. India’s four new Labour Codes were passed in 2019-2020 but have not yet been notified nationally, so existing central and state legislation, including the Shops and Establishments Acts that vary by state, still governs employment. We track which rules apply in each of the 28 states so your contracts and payroll stay compliant as regulations evolve.

Beyond the statutory minimums of EPF, ESI, and gratuity after five years of service, the benefits that actually move the needle for hiring in India are private group health insurance (often extended to dependents), meal or fuel allowances structured for tax efficiency, and flexible or hybrid work policies. In competitive sectors like IT and GCCs, employers also add wellness stipends and additional paid leave on top of the statutory minimum, since candidates routinely compare offers on total benefits, not just base salary.

Notice periods in India are generally set by the employment contract, commonly 30 to 90 days depending on seniority, though the Shops and Establishments Act in the relevant state may set its own minimum. Termination without cause typically requires notice or pay in lieu, and gratuity becomes payable once an employee completes five continuous years of service. Because enforcement varies by state and courts lean toward employee protection, having contracts drafted specifically for India reduces the risk of disputes at exit.

Most employees can be legally onboarded in India within a few days to two weeks once documentation (PAN, Aadhaar, bank details, and prior employment records) is available, compared with the months typically needed to incorporate a private limited company, register for GST and TAN, and set up EPFO and ESIC accounts. This speed is one of the main reasons companies use an EOR for an initial India hire or a small team before deciding whether a local entity makes sense.

India’s employment framework spans central labour laws, state-specific Shops and Establishments rules, and industry-specific regulations, which makes ongoing compliance demanding even for experienced HR teams. An EOR takes on legal employer status, statutory registrations, and compliance liability, so you can hire immediately without incorporation costs, a local bank account, or an in-country compliance function. It’s typically the right call for testing the Indian market, hiring a handful of specialists, or moving fast, while an entity becomes more cost-effective once headcount grows substantially.