Hire in India

Typical time to hire

1-2 weeks for contractor, 2-4 weeks for full-time

Entity requirement

Indian Pvt Ltd, LLP, or branch office. Registration at MCA (Ministry of Corporate Affairs). PAN, TAN, GST, PF, ESI registrations needed.

EOR available

Yes, from $399/employee/month through a Corpshore entity

Contractor of record

Yes, from $39/worker/month

Standard workweek

48 hours (9 hours/day, 6 days). Labour Code on Working Conditions 2020 (not yet notified in most states) proposes changes.

Maximum weekly hours

48 hours

Minimum annual leave

15 days (Earned Leave, 1 for every 20 days worked). Varies by state and Shops & Establishments Act.

Public holidays

3 per year

Maternity leave

26 weeks for first two children, 12 weeks for subsequent (Maternity Benefit Act 2017). Applies to establishments with 10+ employees.

Paternity leave

15 days for central government employees. No statutory provision in private sector (common practice: 5-15 days).

Notice period

30-90 days depending on contract and company policy. Longer notice periods (60-90 days) common in IT services.

Severance

Gratuity: 15 days wages per year of service (after 5 years). Retrenchment compensation: 15 days average pay per year (Industrial Disputes Act).

Probation

3-6 months typical (contractual, varies by state Shops & Establishments Act)

Overtime rules

2x the ordinary rate (Factories Act, Shops & Establishments Act). Maximum 50 overtime hours per quarter under Factories Act.

Income tax range

0% to 30% (old regime) or 0% to 30% with higher thresholds (new regime). Surcharge and cess add ~4-7%.

Corporate tax

25.17% (domestic, turnover under INR 400Cr) or 30% + surcharge + cess. New manufacturing: 17.16%.

Social contributions

EPF: 12% employee + 12% employer + admin charges. ESI: 0.75% employee + 3.25% employer (for salaries under INR 21,000/month).

VAT / GST

GST: 5%, 12%, 18%, 28% depending on goods/services

Tax year

1 April to 31 March

Treaty network

Over 90 tax treaties

Worker classification

Complex: multiple labour laws at central and state levels. The four Labour Codes (Wages, Social Security, Industrial Relations, Occupational Safety) consolidate 29 laws but are not yet fully implemented. Gig workers have a separate classification under the Social Security Code.

Data protection

Digital Personal Data Protection Act 2023 (DPDPA). Data Protection Board of India to enforce. Consent-based framework with data localisation provisions for sensitive data.

Right to work

Employment visa required for foreign nationals. Registered with FRRO within 14 days. Employment visa not granted for routine jobs available in India.

Non-compete

Generally unenforceable under Section 27 of the Indian Contract Act (restraint of trade is void). Non-solicitation clauses have better enforceability but still face judicial scrutiny.

Collective bargaining

Protected under the Industrial Relations Code 2020. Multiple unions common. Standing orders regulate workplace conduct. Industrial tribunals handle disputes.

UPI (Unified Payments Interface) processed over 10 billion transactions per month by 2023 and is one of the world's most successful real-time payment systems. NEFT/RTGS for payroll transfers. Wise supports INR.

• India has the world's largest working-age population and produces over 1.5 million engineering graduates annually
• State-level labour laws create significant compliance variation (e.g., hire/fire flexibility differs between Maharashtra, Karnataka, and UP)
• Long notice periods (60-90 days) in IT are designed to manage knowledge transfer in outsourcing relationships
• The four Labour Codes (2019-2020) will eventually simplify compliance, but state-level notification is proceeding slowly