Hire and pay employees in India, hassle-free
With Deel, your business can easily hire employees in India. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the India is 3 days with Deel.
Onboard, pay and manage employees in India with Deel
Usually, to hire in India, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in India quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Indian Rupee (INR)
Capital New Delhi
Official language Hindi and 22 additional languages
Payroll cycle Monthly
All the necessary benefits for India built right in
Deel allows you to provide localized benefits for employees in India within minutes. All in one manageable online dashboard in a single HR platform.
- Employees Pension Scheme
- Employees Provident Fund
- Private Healthcare - Unisure (optional)
- Healthcare - Plum (optional)
- Private Healthcare - Allianz (optional)
Our quickstart guide to hiring in India
Navigate the tabs below to learn everything you need to know about hiring an employee in India
Minimum Wage Requirements
The minimum wage in India is complex. There is no statutory minimum wage for organizations in the private sector outside of regulated “factory” sectors.
For factory sectors, India uses a complex method of setting minimum wages set at a state and sub-state level that are updated regularly. India defines nearly 2,000 different types of jobs for unskilled workers and over 400 categories of employment, with a minimum daily wage for each kind of job.
The monthly minimum wage calculation includes the variable dearness allowance (VDA) component, which accounts for inflationary trends.
Individual Income Tax
India employs a progressive income tax system. Individuals can choose between two tax regimes: the old regime and the new regime.
New Tax Regime
|
Tax Rate |
Income Tax Thresholds |
|---|---|
|
0% |
From INR 0 to 300,000 |
|
5% |
From INR 300,001 to 700,000 |
|
10% |
From INR 700,001 to 1,000,000 |
|
15% |
From, INR 1,000,001 to 1,200,001 |
|
20% |
From 1,200,001 to 1,500,000 |
|
30% |
Over INR 1,500,001 |
Old Tax Regime
|
Tax Rate |
Income Tax Thresholds |
|
0% |
From INR 0 to 250, 000 |
|
5% |
From INR 250,001 to 500, 000 |
|
20% |
From INR 500,001 to 1,000,000 |
|
30% |
Over INR 1,000,000 |
Please note: tax rates and thresholds vary for employees over the age of 60.
Payroll Cost
Provident Fund contributions must be mutually agreed upon by the employee and employer. Contributions to the Provident Fund can be calculated on either the employee's basic salary, which amounts to 40% of the employee's total gross salary for EOR Employees, or on a fixed amount of INR 15,000 per month.
The estimated employer cost is 12.5% of the employee’s basic salary + INR 75 or 12.5% of the fixed amount of INR 15,000, for a total of INR 1,950 per month.
Monthly Costs
Employer Cost
Calculation Basis: Employee Basic Salary
Calculation Basis: Fixed Amount (INR 15,000)
Provident Fund
12% of the employee's basic salary
INR 1,800 (12% of INR 15,000)
Provident Fund Admin Charges
0.5% of the employee's basic salary
INR 75 (0.5% of INR 15,000)
Deposit Linked Insurance
INR 75
INR 75
Total
12.5% of the employee's basic salary + INR 75
INR 1,950
Annual and Conditional Costs
- Labour Welfare Fund - INR 40 annually in December for EOR
- Employee State Insurance (ESI) - 3.25% monthly for each employee earning under INR 21,000 gross per month
- Gratuity - Variable depending on years of service, paid at offboarding from the 5th year of employment
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
There are no statutory requirements for employees in the private sector outside of factory roles.
Overtime payment is mandatory for factory workers. For additional hours worked, industry practice is to compensate employees with pro-rate PTO or additional pay at 100% of their regular salary.
Hiring in India, hassle-free
With Deel, your business can easily hire employees in India with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in India and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
12.5%
of employee salary