Indian Rupee (INR)
Hindi and 22 additional languages
Hire employees in India. No entity needed.
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.
India also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in India quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
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.
- Employees Pension Scheme
- Employees Provident Fund
- Healthcare - Plum (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
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
The individual income tax ranges from 5% to 30%. Income tax is calculated according to progressive rates. India Income comprises 2 regimes, the New Personal Tax Regime (NPTR) and the old regime. Taxpayers have the option to choose either one of the regimes.
The table below reflects New Personal Tax Regime (NPTR) effective 1 April 2020:
|Gross Annual Income (INR)||Tax Rate (%)|
|Up to 250,000||Exempt|
|Between 250,001 – 500,000||5%|
|Between 500,001 – 750,000||10%|
|Between 750,001 – 1,000,000||15%|
|Between 1,000,001 – 1,250,000||20%|
|Between 1,250,001 – 1,500,000||25%|
The employer cost is generally estimated at 13.0% of the employee salary.
- Employees’ Provident Fund - 3.67%
- Employees’ Pension Scheme - 8.33%
- Administrative charges - 1.0%
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.
Pregnant employees who have worked with the same employer for 80 days in the last year are entitled to 26 weeks of paid leave. 8 weeks must be taken before the child's birth.
The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.
The employee can extend leave without pay.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in India can be done” at-will” (e.i. without cause) depending upon the employment agreement as long as required notice and severance are followed.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Breach of duties and responsibilities
- Gross default and misconduct contravening the terms and conditions of the agreement
- By the expiration of the contract
Severance for Employees
Employees are entitled to severance pay based on the reason for termination.
- Termination caused due to redundancy - Employees are entitled to severance pay worth 15 days' average pay for every 1 year of continuous service or part thereof in excess of 6 months
- Employees who are dismissed - Employers must pay termination benefits including leave accrued, gratuity payment (for employees with over 5 years of continuous service), payment in lieu of notice (if no notice is given), statutory bonus payment, and any other amounts due under the employment contract.
- Employees who are terminated due to misconduct - No entitlement to notice pay or severance pay
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
National holidays include:
- New Year’s Day
- Makar Sankranti
- Republic Day
- Maha Shivratri
- Ram Navami
- Mahavir Jayanti
- Good Friday
- Eid al-Fitr
- Buddha Purnima
- Bakri Eid
- Independence Day
- Ganesh Chaturthi
- Gandhi Jayanti
- Guru Nanak Jayanti
Employment Contract Details
Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.
A contract must include:
- Job role and job description
- Employee obligation
- Termination conditions
Hiring 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.
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