Employer of Record Services for India

Employing in India

The captivating, colourful country of India has long been known for its mix of traditions, renowned local cuisine and stunning sites — perfect for modern-day adventurers looking to explore. But for international businesses, India also offers a unique opportunity to become a part of the globe’s fifth-largest economy and the second-most populous country.

India has the fastest growing economy in the world, spending billions on infrastructure, and has increased its size by six times since 2000!

It’s often described as a developing market economy and has been identified as one of the world’s largest emerging economies — known as the ‘BRICS nations’ (along with the likes of Russia, Brazil, China and South Africa). Many international companies move to India to take advantage of the country’s huge pool of both skilled and unskilled labour, which is available at a comparatively moderate cost. However, many organisations that expand into India for the costs tend to stay for the quality and investments in innovation.

Most opportunities can be found in the major northern cities, such as the financial centre of Mumbai and India’s political capital New Delhi. The southern megacity of Bengaluru is also home to the India’s high-tech industry — while arts, retail and hospitality tend to be centred around the coastal tourist hotspots, such as Goa in the west. Foreign companies needn’t worry too much about settling in and establishing connections, either: the main business language is English.

Our Expertise

Managing a global workforce in India

Effectively managing a workforce in India involves navigating a myriad of regional and national employment laws, as well as understanding the cultural nuances within this vast country. India's labour laws vary significantly across states, presenting unique challenges in terms of compliance and workforce management. TopSource Worldwide offers tailored solutions to these challenges, ensuring that businesses maintain compliance with local labour laws while efficiently managing employment.

Extensive expertise

Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.

Entity-free employment

Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.

Payroll without hassle

Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.

Always-on support

Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.

"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."

Annette van Duijnhoven

Nutreco

See our customer stories

”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."

Praveen Lihinar

Sungard

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”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Supervisor

Client based in Ft Worth, Texas, USA

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GLOBAL EXPANSION STRATEGY

Personalised Employer of Record services in India

TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in India. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your India -based employees.

End-to-end India payroll services

Looking to expand into India? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your India expansion initiatives.

Global entity management

Venturing into the Indian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.

Accounting

Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.

Global EOR services

Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.

Global Expansion Simplified

How to do business in India

Entering the Indian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.

TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in India.

Start your India expansion

India Insights

Key insights into India's landscape

VAT rates: India has a Goods and Services Tax (GST) system with multiple rates, including 5%, 12%, 18%, and 28%, with certain goods and services exempt or subject to a nil rate.

Ease of Doing Business rank: India ranks 63rd in the World Bank's Ease of Doing Business Index, showcasing improvements in the business environment.

Consumer Confidence Index: As of November 2023, Consumer Confidence in India averaged 92.20 points.

Employee maternity/paternity leave: Maternity leave is 26 weeks, and paternity leave is typically 5 days.

Employee termination period: Standard notice for termination varies but is typically 1 to 3 months, depending on employment contract terms and duration.

Employee salary pay date: 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

Bank holidays: Public holidays in India include Republic Day, Independence Day, Diwali, Christmas, and various state-specific holidays.

Salary information

salary CURRENCY

Indian rupee (₹)

Salary

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

Private healthcare

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.

Public healthcare

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.

Employer costs & Social security system

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

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.

Sick leave & additional 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.

Contractual provisions

Contract of employment

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.

Probationary period

The probationary period in India is one to six months.

Working hours

Normal working hours are considered 45 to 48 hours per week.

Rest breaks

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

Overtime is usually paid at 200% of the employee’s usual rate.

Additional leave

Work-related injury leave is available to any employee who becomes temporarily disabled. They’ll receive 50% of their usual pay.

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Discover our payroll benefits

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in India

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

Understand the different types of EOR taxes
Stay up-to-date on the latest changes to EOR tax regulations
Avoid penalties for non-compliance

Speak to our team

Our author

Mark Robbins

Global Sales Director

Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013.

Published 2023-11-14 00:00:00

Updated 2023-11-15 00:00:00

Reviewed by:

Adrian Cooney

Fact checked by:

Adrian Cooney

Employer of Record FAQ

Frequently Asked Questions about Indian employment solutions

What is an Employer of Record in India?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in India. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in India?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in India. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in India?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in India. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.