India

Employer of Record & PEO in India

Hire & manage teams remotely in India without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language

Hindi

Employee Protection

Medium

Payroll Frequency

Monthly

Capital city

New Delhi

Average Salary

29,400 INR / month

Internet

Slow

Currency

Indian Rupee (INR)

Immigration

Medium

English Speaking

<50%

Population

1.352 Billion

Employment Cost

Low

Cost of Living

Low

How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in India. Registering a legal entity in India as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in India in full accordance with local labor laws in under a week.

Employer of Record in India

Employer of Record (EOR) services are for companies who do not have a legal entity in India, but who want to hire in India. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in India.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in India in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in India while NNRoad manages payroll & HR liabilities.

  • Acting as the employer of record for your employees
  • Recruiting service (if needed), including candidate search, screening candidates, interview, offer, negotiation and reference check, assistance with on boarding documents
  • Hiring of and termination of employees/local labor contracts (contract administration – checking right to work legally in India, offer letter, appointment letter, relieving letter and experience/conduct certificate where necessary)
  • On-boarding and off-boarding employees following local law practice
  • Complete payroll solution and statutory benefit administration
  • Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law
  • Mandatory social security (provident fund and pension fund) compliance according to the local laws
  • Statutory Benefits policy maintenance and updating on regular basis
  • Maternity benefits management for expectant women employees
  • Foreigner VISA application, if needed
  • Income tax declaration administration (employee personal income tax reporting), if needed

PEO in India

Professional Employment Organization (PEO) services are for companies who have a legal entity in India, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in India.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in India while NNRoad manages payroll & HR compliance.

  • Establishing tax-efficient salary structure and adjusting pay cycle per request
  • Registration of the necessary company and personnel information for payroll calculation in the payroll software and system:
  • Raw data collection and cleaning including processing raw payroll data with respect to leaves, increments, bonus pay, variable pay per-diems, & salary advance, if any, given or recovered
  • Determination of statutory deductions (TAS under income tax act, ESI, EPF, PT, VPF and Labour Welfare Fund contributions) based on employee pay for withholding taxes, state and other central taxes & contributions to social security schemes
  • Local social security (Employee Provident Fund, Employee State Insurance, Professional Tax, and Gratuity) bureau registration, if applicable
  • Set up payroll policy, maintenance, and update
  • Maintain employee records accordingly to the requirements by local government
  • Providing access to the payroll system
  • Set up bank instruction for payment
  • Monthly and quarterly payroll processing
  • Year-end adjustments and annual declaration

Advantages of NNRoad's India Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in India.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in India.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in India

Taxes & Payroll in India

Employee Income Taxes:

Individual income tax rates in India are based on progressive tax brackets. Incomes at or bellow 250,000 INR per year are not taxed.

Tax Brackets

0%: 0-250,000 INR
5%: 250,001 – 500,00 INR
20%: 500,001 – 1,000,000 INR
30%: >1,000,000 INR

Sample Calculation

Yearly income = 1,000,000 INR
20% * 500,000 = 100,000
5% * 250,000= 12,500
0% * 250,000 = 0
100,000+12,500+0 = 112,500
Yearly income tax = 112,500 INR

Employer Costs in India

Employer Contributions:

Employers must pay income taxes based on the salary of their employees:

12% – pension (capped at 15,000 INR per month)
4.75% – Health insurance

Employee Contributions:

12% – pension
1.75% – Health insurance

Working Hours in India

Working Hours per Week

The working hours per week in India range between 40-45 hours for full-time employees. Note that maximum legal working hours can vary by industry. Contact us for more detailed information.

Overtime Laws & Regulations

Typically, overtime compensation in India is calculated as 2 times the normal work rate. Some employees such as managers and IT staff sometimes do not qualify for overtime pay. This discrepancy brings about much legal ambiguity and overtime compensation will vary from case to case and employee.

Benefits & Insurance in India

Pension Fund

Employees in India benefit from a pension fund where both the employer and employee deposit 12% of the employee’s monthly wage. 

Healthcare Insurance

Medical insurance is covered by the employer through a healthcare contribution.

Termination Laws in India

Severance

Severance in India is only provided in cases of redundancy, when an employee’s job becomes redundant either through technology or cost reductions.

Notice Period

Employers in India typically do not have to issue a notice of termination.

Public Holidays in India

Public Holidays in India

India is home to hundreds of regional holidays that vary from region to region. The most important and widespread holiday in India is Diwali on October 24. There are 3 federal public holidays in India:

  • Mahatma Ghandi’s Birthday
  • Independence Day
  • Republic Day

Paid Leave in India

Employees in India are entitled to between 15 and 20 paid annual leave days per year.

holidays India peo employer of record

Employment Contract in India

Probation Period

Probation periods in India can range between 3 and 6 months. During this time the employer reserves the right to terminate an employee without providing any notice.

Types of Leaves in India

Sick Leave

Full-time employees in India are entitled to 10 days of paid sick or personal leave per year.

Maternity Leave

Full-time employees in India are entitled to 12 t0 26 weeks of paid maternity leave and an extra 6 weeks of paid leave in the case of a miscarriage.

Paternity Leave:

It is common in India for new fathers to receive 15 days of paternity leave.

Immigration Laws in India

Foreign workers may be granted a work visa in India for jobs where qualified Indians are unavailable. Employment visas. Citizens of Pakistan are forbidden from receiving Indian work visas.

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