Employer of Record India (EOR India)
- Save upto 3% on your payroll cost
- Hire Indian employees without setting up a local entity
- Onboard talent in 24 hours with India-compliant contracts
- We run payroll, TDS, EPF, ESI, gratuity and all filings
- Eliminate permanent establishment and compliance risk
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Currency
Indian Rupee (INR)
Capital
New Delhi
Official Language
Hindi and English
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's Employer of Record in India
Asanify is consistently rated #1 for ease of use on G2 across HR, Payroll, and Employer of Record categories. We help global companies hire in India without setting up a subsidiary, opening a PAN or TAN, or hiring an in-house compliance team.
From offer-letter generation and onboarding to monthly payroll, TDS filings, EPF and ESI contributions, gratuity accruals, and full-and-final settlements, Asanify runs the complete India employment lifecycle for you. Our local payroll team based in Kolkata handles every state-specific filing across 28 states and 8 union territories.
Companies switching to Asanify from generic global EOR providers report faster onboarding, lower cost per hire, and zero compliance escalations. The India entity (Asanify Technologies Pvt Ltd, operating since 2019) gives you direct contractual coverage and Indian jurisdictional protection that resold partner-network EORs cannot match.
Rapid and Compliant Hiring
Hire employees across India in 24 to 48 hours, not months. Asanify generates locally compliant employment contracts aligned with the Indian Contract Act, the Code on Wages 2019, state Shops and Establishments Acts, and the Industrial Relations Code 2020.
Each offer letter includes correctly structured CTC components (basic, HRA, special allowance, statutory bonus, gratuity), TDS declarations, and EPF and ESI eligibility checks. Background verification, Aadhaar and PAN validation, and bank account onboarding run in parallel, so your candidate signs once and starts on day one.
End-to-End Payroll and Tax Compliance
Run fully compliant monthly payroll without operational overhead. Our employer of record india platform automates salary processing, Section 192 TDS calculations, Form 24Q quarterly filings, EPF ECR generation, ESI returns, and state-specific tax deductions.
Every month you receive a single consolidated invoice in your home currency, with India-side payroll fully reconciled. Employees get itemised payslips on the 25th, salary credits on the last working day, and a self-serve portal for Form 16, leave balances, and tax declarations.
Comprehensive Statutory Benefits Management
Deliver competitive and compliant employee benefits packages in India. We administer Employee Provident Fund (12% of basic, employer-matched), Employee Pension Scheme contributions, gratuity accruals at 4.81% of basic, statutory bonus for employees earning under ₹21,000 per month, 26-week paid maternity leave, and 12-day minimum privilege leave.
On top of statutory coverage, Asanify supports group health insurance for the employee plus family, term life cover, accident cover, and optional benefits such as gym memberships, learning budgets, and ESOPs administered through the employee's payslip. India's competitive benefits packages are how you keep top talent. Asanify makes them easy to deliver.
Multi-State Compliance Expertise
India's employment regulations vary across 28 states and 8 union territories, making local compliance complex when you hire across regions. Asanify maintains state-specific registrations, payroll rules, holiday calendars, and minimum wage tables for every Indian jurisdiction we operate in.
Whether you hire in Bengaluru, Delhi NCR, Mumbai, Hyderabad, Chennai, Pune, Kolkata, or any tier-2 city, employee contracts, payroll, and statutory filings reflect that state's local laws automatically, with no rule-mapping work for your HR team.
How Asanify's Employer of Record Works in India
When you partner with Asanify as your employer of record india provider, we step in as the legal employer for every Indian hire. We sign the employment contract, run payroll, file TDS, contribute to EPF and ESI, and handle the full-and-final settlement on exit, while you keep day-to-day operational control over what your team builds, ships, and delivers.
Here is how an EOR India engagement works end-to-end:
- Immediate Market Entry: Start hiring in India without establishing a subsidiary or branch office, with no PAN, TAN, GST, or Shops and Establishments registration required on your side.
- Compliant Offer and Onboarding: We generate locally drafted employment contracts in 24 to 48 hours, run background verification, and set up bank, PF, and ESI accounts before day one.
- Full Employment Services: We handle monthly salary disbursement, TDS, EPF, ESI, gratuity, leave accruals, expense reimbursements, and final settlements.
- Statutory Compliance Coverage: Every filing across central legislation (Code on Wages, Social Security Code) and state Acts is tracked, filed, and reconciled by our India team.
- Real-Time Visibility: Monitor onboarding status, payroll, leave balances, and compliance health on a single dashboard. Export Form 16, Form 24Q, and ECR reports any time.
- Risk Mitigation: Asanify holds the employment relationship, which insulates your parent company from permanent establishment exposure under the India-OECD framework.
Trusted by top companies around the Globe
Employer of record
Employment Law Compliance in India
India’s employment landscape is governed by four consolidated codes (Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, Occupational Safety and Health Code 2020) plus state-level Shops and Establishments Acts and tax legislation.
Asanify ensures full Indian labor law compliance across the entire employee lifecycle, from offer to exit, and protects your business from regulatory penalties.
Our India entity (Asanify Technologies Pvt Ltd, operating since 2019) is registered for EPF, ESI, professional tax, and Shops and Establishments in every state we operate in, so the legal infrastructure is already in place when you start hiring.
- TDS deduction and filing, PF/EPF and ESI contributions managed accurately
- State Shops and Establishments registration, professional tax filing, and local payroll rules
- Gratuity at 4.81% of basic, statutory bonus, leave encashment, and final-settlement calculations done per the Industrial Relations Code 2020
What our happy customers say
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Table of Contents
What is an Employer of Record in India?
An Employer of Record India (EOR India) is a third-party company that becomes the legal employer of your Indian workforce, while you retain operational control over what they build, sell, and deliver. The EOR signs the employment contract, runs payroll, withholds TDS, contributes to EPF and ESI, manages gratuity, files all statutory returns, and handles the full-and-final settlement when an employee leaves.
For a global company hiring its first or its hundredth Indian employee, an employer of record india partner is faster, cheaper, and lower-risk than incorporating an Indian subsidiary, getting PAN and TAN, registering for GST, and building an in-country HR and finance team.
When companies use an EOR India
The EOR India model fits five common scenarios:
- Expanding into India without a local entity: Test the market or hire 1 to 50 Indian employees without the cost and complexity of incorporating a subsidiary, getting RBI clearances for FDI, or opening a corporate bank account.
- Hiring remote employees or distributed teams: Compliantly employ Indian engineers, sales professionals, customer success leads, or support staff from anywhere in the world.
- Navigating Indian employment regulations: Stay compliant with India’s multi-layered framework of central codes, state-specific Shops and Establishments Acts, and Income Tax provisions on TDS and Form 16.
- Reducing time-to-hire: Onboard employees in 24 to 48 hours instead of the 3 to 6 months required for entity incorporation, registrations, and bank account setup.
- Maintaining workforce flexibility: Scale teams up or down without long-term legal commitments, severance liabilities, or fixed infrastructure costs.
What the EOR India provider handles
A complete employer of record india engagement covers the full Indian employment lifecycle: locally drafted employment contracts, background verification, statutory registrations (EPF, ESI, professional tax), monthly payroll processing in INR, Section 192 TDS, Form 24Q quarterly returns, Form 16 issuance, gratuity accruals at 4.81% of basic, paid leave administration (privilege, casual, sick, maternity, paternity), reimbursement processing, and termination settlements compliant with the Industrial Relations Code.
The EOR also handles harder-to-procure pieces: group health insurance for the employee plus family, term life cover, ESOPs accounted through the payslip, work-from-home stipends, and city-specific allowances.
Why Asanify is a different kind of EOR India provider
Asanify provides the complete India employment infrastructure. Asanify Technologies Pvt Ltd has been operating as an Indian-registered entity since 2019, with direct EPF, ESI, professional tax, and Shops and Establishments registrations in every state we serve. Companies hiring via Asanify get an Indian entity holding the contractual relationship, not a partner-network reseller layer that adds latency, opacity, and a margin stack.
How Asanify's Employer of Record Works in India
Asanify acts as the legal employer for your Indian workforce, assuming all compliance responsibilities while you maintain complete control over daily operations, assignments, and performance management.
Fast Market Entry Without Entity Setup
Enter the Indian market in days, not months. Asanify’s EOR eliminates the need for company registration, GST compliance setup, or establishing local banking relationships. You can hire top Indian talent immediately while we handle all legal employer obligations under Indian labor law.
Complete Employment Lifecycle Management
From offer letter to offboarding, Asanify manages the entire employment journey. We draft India-compliant employment contracts, process monthly payroll with accurate tax withholding (TDS), manage statutory contributions (PF, ESI, professional tax), administer employee benefits, and ensure compliant termination procedures including full and final settlement.
Centralized Visibility and Control
Our unified platform gives you real-time access to payroll data, compliance documentation, employee records, and statutory filings. Manage your Indian workforce alongside global teams through a single dashboard with complete transparency into costs, compliance status, and HR operations.
What Asanify Handles Under Employer of Record (EOR) in India
Asanify provides a fully managed employment infrastructure in India, taking care of every compliance and administrative requirement so you can focus on growing your business.
Compliant Employment Contracts
We draft legally compliant employment agreements tailored to Indian labor laws, incorporating central and applicable state regulations, proper compensation structures, leave policies, termination clauses, and confidentiality provisions. All contracts are reviewed to ensure alignment with the Industrial Disputes Act, Shops and Establishments Acts, and other relevant legislation.
Seamless Employee Onboarding
Our onboarding process includes document collection (PAN, Aadhaar, bank details, educational certificates), background verification as per Indian standards, UAN generation for Provident Fund, ESI registration where applicable, and setting up employees on our payroll and HRMS platform. Employees are ready to start work within days.
Payroll Processing and Salary Disbursement
We handle end-to-end payroll processing with accurate calculations of gross salary, allowances (HRA, transport, special allowances), deductions, and net pay. Salaries are disbursed in INR on time every month via direct bank transfer, with detailed payslips provided to each employee through our platform.
Tax Deduction and Payroll Compliance
Asanify manages all Tax Deducted at Source (TDS) calculations under Section 192 of the Income Tax Act, files monthly TDS returns (Form 24Q), issues Form 16 annually, and ensures proper tax planning support for employees. We stay updated with Finance Act changes and ensure accurate tax compliance throughout the year.
Statutory Contributions and Social Security
We manage mandatory contributions to Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) with EPFO, Employee State Insurance (ESI) where applicable, state-specific professional tax, Labour Welfare Fund, and other statutory requirements. All filings are completed accurately and on time.
Benefits and Compensation Support
Beyond statutory benefits, Asanify can administer supplemental benefits including health insurance, gratuity management, leave and attendance tracking, bonus and incentive processing, and reimbursement management. We help design competitive compensation packages that attract and retain Indian talent.
Employee Support and HR Documentation
Our team provides ongoing HR support to your Indian employees, handling queries related to payroll, benefits, taxes, leave policies, and employment terms. We maintain all required registers and records as mandated by Indian labor laws and provide employment verification letters, experience certificates, and other documentation as needed.
Exit Management and Final Settlement
When employment ends, Asanify manages the complete offboarding process including notice period compliance, full and final settlement calculations (including pending salary, leave encashment, gratuity if applicable, and bonus), Form 16 issuance, EPF withdrawal processing, experience certificate generation, and ensuring legally compliant separation as per the Industrial Disputes Act.
Employer of Record vs Entity Setup in India
| Criteria | Employer of Record (EOR) | Entity Setup |
|---|---|---|
| Best For | Testing market, hiring 1-50 employees, rapid expansion, temporary projects | Permanent establishment, large-scale operations (50+ employees), long-term presence |
| Speed to Hire | 3-5 days for first hire | 3-6 months for entity registration, banking, compliance setup |
| Setup Cost | No setup cost; pay-per-employee monthly fee | ₹5-15 lakhs for incorporation, office lease, GST registration, banking |
| Compliance | Fully managed by EOR; includes PF, ESI, TDS, labor law compliance | Your responsibility; requires local HR, legal, accounting teams |
| Flexibility | Scale up or down easily; no long-term commitments | Fixed infrastructure; high exit costs if closing entity |
| Legal Presence | No Indian legal entity required | Full legal entity (Private Limited, Branch, Subsidiary) |
Employer of Record (EOR) Cost in India: Pricing Guide
Understanding EOR costs in India is essential when planning your market entry strategy. Unlike entity setup which requires significant upfront capital investment, EOR operates on a predictable monthly fee structure that scales with your workforce size.
The cost of using an Employer of Record should be evaluated not just as an expense, but as a strategic investment that eliminates setup barriers, accelerates time-to-market, and removes ongoing compliance management overhead.
Transparent Pricing Structure
Asanify’s EOR pricing in India is straightforward and transparent. We charge a competitive monthly fee per employee that covers all compliance, payroll, statutory contributions, HR administration, and ongoing support. A one-time onboarding fee applies for new hires to cover contract drafting, background verification, and system setup. There are no entity setup costs, no hidden charges, no minimum commitment periods, and no need to engage multiple vendors for payroll, compliance, and HR management.
What Impacts Pricing?
- Number of employees: Economies of scale apply; per-employee fees decrease as your team grows
- Compensation structure: Complex variable pay, incentives, or equity components may require additional administration
- Benefits requirements: Premium health insurance, supplemental benefits, or custom perks affect overall cost
- Payroll complexity: Multiple pay cycles, frequent adjustments, or intricate reimbursement policies may impact pricing
- Local regulations: State-specific compliance requirements, professional tax variations, and industry-specific labor laws factor into service delivery
Why EOR Delivers Strong ROI
- Faster market entry: Hire revenue-generating employees in days instead of waiting months for entity incorporation
- Reduced overhead: Eliminate need for local HR team, compliance officers, payroll specialists, and legal advisors
- Lower compliance risk: Avoid penalties, legal disputes, and reputational damage from non-compliance with complex Indian labor laws
- Simplified workforce management: Single platform, single invoice, single point of contact for all Indian employment needs
Who Should Use Employer of Record in India
Asanify’s EOR solution in India is designed for organizations of all sizes that want to access Indian talent quickly, compliantly, and cost-effectively without the burden of establishing a legal entity.
Global Startups Expanding Internationally
Early-stage and growth-stage startups looking to tap into India’s vast talent pool can use EOR to hire developers, designers, marketers, and customer support teams without diverting limited resources to entity setup and compliance management. Test product-market fit with local teams before committing to permanent infrastructure.
Technology and SaaS Companies
Tech companies hiring remote engineers, product managers, or technical support specialists in India benefit from EOR’s speed and flexibility. Scale engineering teams rapidly in Bangalore, Hyderabad, or Pune while maintaining compliance with Indian IT industry employment standards and intellectual property protection requirements.
HR and People Teams
HR leaders responsible for international hiring use EOR to eliminate administrative burden, reduce compliance risk, and provide excellent employee experience. Focus on talent acquisition and retention while Asanify handles payroll, benefits, statutory filings, and employee queries in India.
Finance and Operations Leaders
CFOs and operations executives appreciate EOR’s predictable cost structure, elimination of entity setup capital expenditure, and simplified financial reporting. Manage Indian workforce costs through a single monthly invoice while maintaining complete visibility into compensation, taxes, and statutory expenses.
Enterprises Scaling Global Teams
Large organizations expanding into India or consolidating existing contractors onto compliant employment can use EOR to standardize employment practices, ensure consistent compliance, and maintain centralized workforce visibility. Ideal for establishing regional hubs, centers of excellence, or supporting functions in India.
Why Asanify is Different from Generic EOR Providers
While many global EOR providers offer India as part of a multi-country portfolio, Asanify brings deep, specialized expertise in the Indian employment landscape. We understand the nuances of India’s complex labor law framework, state-specific regulations, and cultural employment practices.
Our platform is built specifically for the Indian market, ensuring that every aspect of employment compliance—from contract drafting to final settlement—meets both central and state regulatory requirements.
Country-Specific Compliance Expertise
Asanify’s team comprises Indian labor law experts, chartered accountants, and HR professionals with decades of combined experience navigating India’s multi-layered regulatory environment. We stay current with changes across 29 states and 7 union territories, ensuring your employment practices remain compliant regardless of where your employees are located in India.
Integrated Payroll and HR Technology
Our proprietary platform is designed for the Indian market, with built-in intelligence for Indian tax calculations, statutory compliance, leave policies, and payroll processing. Employees access payslips, tax forms (Form 16), investment declarations, and reimbursement submissions through an intuitive interface, while you maintain real-time visibility into all HR and payroll operations.
Faster Onboarding and Execution
Leveraging local presence and deep market knowledge, Asanify completes employee onboarding in India within 3-5 days. Our streamlined processes for background verification, UAN generation, ESI registration, and contract execution ensure your new hires are productive quickly without compromising compliance thoroughness.
Real-Time Visibility and Reporting
Access comprehensive dashboards showing payroll summaries, statutory compliance status, upcoming filing deadlines, employee lifecycle events, and cost analytics. Generate reports for internal stakeholders or external auditors instantly. Our platform integrates with your existing HRIS, accounting software, or expense management tools for seamless data flow.
End-to-End Workforce Management
Beyond basic EOR services, Asanify supports the complete employee lifecycle including performance management integration, learning and development coordination, employee engagement initiatives, and strategic HR consulting. We act as an extension of your team, providing proactive guidance on Indian employment best practices, compensation benchmarking, and retention strategies.
Why Use an Employer of Record in India
India offers exceptional talent across technology, engineering, finance, customer service, and creative industries. However, employing workers in India comes with complex compliance requirements that can be overwhelming for foreign companies. An EOR removes these barriers while providing strategic advantages.
Hire Faster Without Setup Delays
Entity incorporation in India involves multiple regulatory approvals, banking relationships, GST registration, and office establishment—a process taking 3-6 months. EOR enables you to hire your first Indian employee within days, capturing opportunities and talent before competitors. This speed advantage is critical in fast-moving markets and competitive talent landscapes.
Ensure Compliance from Day One
India’s labor laws span central legislation (like the Code on Wages, Industrial Relations Code) and state-specific Shop and Establishment Acts, each with unique requirements. Non-compliance risks penalties, litigation, and business disruption. Asanify’s EOR ensures every aspect of employment meets current regulatory standards, from contract language to statutory contributions, protecting your company from legal exposure.
Reduce Costs and Operational Overhead
Establishing and maintaining an Indian entity requires significant investment in legal fees, accounting services, office infrastructure, local HR teams, and compliance management. EOR converts these fixed costs into a predictable variable cost model, eliminating capital expenditure and reducing your total cost of employment while improving operational efficiency.
Improve Employee Experience
Indian employees expect professional HR support, timely salary processing, accurate tax management, and responsive service. Asanify provides local-language support, familiar payroll practices, and comprehensive employee assistance, ensuring your Indian team members receive the same quality experience as employees in your headquarters location. This improves retention and engagement.
Simplify Workforce Management
Managing employees across multiple countries creates administrative complexity and fragmented visibility. Asanify’s platform centralizes your Indian workforce data alongside other global teams, providing unified reporting, consistent processes, and simplified management. HR and finance teams appreciate the operational efficiency and reduced complexity of managing international teams through a single system.
India Employment Compliance Checklist for International Hiring
Hiring workers in India requires navigating a complex regulatory framework that spans central government legislation and state-specific employment regulations. International hiring teams must ensure compliance across multiple domains to avoid penalties and disputes.
Employment Contracts under the Code on Wages and Industrial Relations Code
Indian employment contracts must comply with the Industrial Employment (Standing Orders) Act, the state Shops and Establishments Acts, the Code on Wages 2019, and the Industrial Relations Code 2020. Contracts must clearly define compensation, working hours, leave entitlements, termination clauses, and dispute resolution mechanisms.
Fixed-term employment is permitted under specific conditions outlined in the Industrial Relations Code 2020. Contracts in regional languages may be required in certain states. Probation typically runs 3 to 6 months, with shorter notice periods during probation.
Payroll Tax Withholding under Section 192
Employers must deduct Tax Deducted at Source (TDS) from employee salaries under Section 192 of the Income Tax Act. Monthly TDS calculations must account for the salary structure, tax-saving investments declared by employees, and applicable tax slabs under the chosen tax regime (old or new).
Employers file quarterly TDS returns (Form 24Q) and issue annual Form 16 certificates by 15 June. Failure to deduct or deposit TDS on time results in interest charges, late-filing fees under Section 234E, and disallowance of the salary expense under Section 40(a)(ia).
Tax Rates and Direct Tax Slabs Applicable to Salaried Employees
Indian salaried employees are taxed under either the old regime (with deductions under 80C, 80D, HRA exemption, etc.) or the new regime (lower slabs, fewer deductions). The new regime is the default from FY 2023-24 onwards. employees can opt out annually.
Direct tax slabs under the new regime range from 0% (up to ₹3 lakh) to 30% (above ₹15 lakh), with a 4% health and education cess on top. Employers must apply the correct slab based on the employee’s regime selection and project the annual tax liability across all 12 monthly TDS withholdings.
Social Security Contributions: EPF, EPS, ESI, and Gratuity
Mandatory contributions include Employee Provident Fund (EPF) at 12% of basic wages, matched by the employer. Of the employer’s 12%, 8.33% is routed to the Employee Pension Scheme (EPS), capped on basic salary of ₹15,000.
Employee State Insurance (ESI) applies to employees earning up to ₹21,000 per month: 0.75% from the employee plus 3.25% from the employer for establishments with 10 or more employees. Gratuity is payable at 4.81% of basic salary, accruing for employees who complete 5 years of continuous service, calculated as 15 days’ salary for each completed year.
State-specific professional tax is also payable, with rates varying by state. Maharashtra, Karnataka, West Bengal, and Tamil Nadu all have their own slabs and filing cadences.
Termination, Severance, and Notice Periods
Termination procedures are governed by the Industrial Disputes Act and the Industrial Relations Code 2020. Notice periods typically range from 30 to 90 days depending on contract terms and seniority.
For establishments with 100 or more workmen, prior government approval is required for layoffs, retrenchments, and closures. Severance pay (retrenchment compensation) is calculated at 15 days’ average pay for each completed year of service. Failure to follow proper procedures can result in claims for unfair dismissal and reinstatement orders.
Data Protection: IT Act 2000 and DPDP Act 2023
Indian employers must comply with the Information Technology Act 2000 and the Digital Personal Data Protection Act 2023 when handling employee personal data. The DPDP Act, in force from 2023, introduces obligations around consent, purpose limitation, data minimization, and notification of personal data breaches.
Cross-border transfers of employee data to a parent company abroad are permitted, subject to the destination country not being on a government-restricted list. Employers must implement appropriate security measures and provide transparency about data usage in the privacy notice.
Work Permits and FRRO Registration for Foreign Workers
Foreign nationals working in India require an Employment Visa, which is issued for skilled professionals and requires approval from the Ministry of Home Affairs. Business Visas cannot be used for regular employment.
Foreign employees staying more than 180 days must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival. Employers must ensure visa compliance, maintain documentation, and coordinate with immigration authorities for visa renewals, extensions, and exit formalities.
Employer of Record FAQs in India
What is an Employer of Record in India?
An Employer of Record India, sometimes written as Employer of Record in India or EOR India, is a third-party company that signs the employment contract on behalf of your business and becomes the legal employer of record for your Indian hires.
The EOR India provider handles all statutory employment obligations: monthly payroll, Section 192 TDS withholding, Form 24Q filings, EPF and EPS contributions, ESI enrolment, professional tax, gratuity accruals, leave administration, and full-and-final settlements.
You retain complete operational control. you assign work, manage performance, decide compensation, and run day-to-day team management. The EOR India company handles employment compliance under the Code on Wages, Industrial Relations Code, and Social Security Code so your business never builds a permanent establishment in India.
How quickly can I hire employees in India using Asanify's EOR?
You can onboard employees in India within 24 to 48 hours of candidate selection through Asanify’s employer of record india service. We prepare locally compliant offer letters and employment agreements aligned with the Code on Wages and state Shops and Establishments Acts.
In parallel, we run background verification, complete EPF and ESI registrations, set up professional tax accounts, and configure payroll. Your new hire receives the offer, signs digitally, completes KYC, and is fully onboarded ready for day one. usually within 2 business days, with no involvement from your global HR team beyond the initial role brief.
Do I need to register a company in India to hire employees?
No, you do not need to establish a legal entity in India to hire employees through Asanify’s employer of record india service. We serve as the legal employer for your Indian hires, eliminating the need for company incorporation, RBI approvals for foreign direct investment, PAN and TAN registrations, GST registration, or opening an Indian corporate bank account.
Your foreign parent company simply contracts with Asanify Technologies Pvt Ltd, our wholly-owned Indian entity registered since 2019. We hold the employment contract, your team builds the work product, and your global brand keeps full operational control without local entity overhead.
What statutory contributions does Asanify manage in India?
Asanify handles all mandatory statutory contributions in India including Employee Provident Fund (EPF), with 12% from the employer and 12% from the employee on basic wages, of which 8.33% from the employer side is routed to the Employee Pension Scheme.
We also manage Employee State Insurance (ESI) at 3.25% from the employer plus 0.75% from the employee for eligible employees earning up to ₹21,000 per month, plus state-specific professional tax and labour welfare fund where applicable.
On the income tax side, we handle Section 192 TDS calculations, Form 24Q quarterly filings, Form 16 annual issuance, and reconciliation with the Income Tax Department’s TRACES portal.
What are the mandatory employee benefits in India?
Indian employees are entitled to mandatory statutory benefits including provident fund (EPF and EPS), gratuity payable after 5 years of continuous service at 15 days’ salary per completed year, annual statutory bonus for employees earning below ₹21,000 per month, minimum 12 days privilege leave annually, 26 weeks paid maternity leave under the Maternity Benefit (Amendment) Act 2017, and ESI medical benefits for eligible employees.
On top of statutory benefits, Asanify supports competitive benefits packages such as group health insurance covering the employee, spouse, and children, term life cover, accident cover, and optional benefits including gym memberships, learning and development budgets, and ESOPs accounted through the payslip. We ensure full compliance with all benefit entitlements under Indian law.
How does payroll processing work in India through an EOR?
Payroll in India is processed monthly, typically with cutoff between the 25th and the last day of the month. Asanify calculates gross salaries based on each employee’s CTC structure, applies Section 192 TDS withholding, deducts EPF and ESI contributions, processes expense reimbursements, and disburses net pay via direct bank transfer.
We generate detailed payslips, file Form 24Q quarterly TDS returns, submit EPF and ESI ECR (Electronic Challan-cum-Return) every month, and file state professional tax returns on the prescribed cadence. Employees access payslips, Form 16, and tax declarations through a self-serve portal in real time.
What are the notice period requirements in India?
Notice periods in India are typically defined in the employment contract, commonly ranging from 30 to 90 days depending on the role and seniority. During probation (usually 3 to 6 months), notice periods are shorter, often 7 to 30 days. Senior leadership roles often carry 90-day notice clauses for both parties.
Either party may opt for payment in lieu of notice, where the departing party pays one full month of CTC for each unserved month of notice. Asanify ensures all separations comply with contractual terms, the Industrial Relations Code 2020, and applicable state Shops and Establishments Acts. We also handle the calculation of leave encashment, gratuity, pro-rata bonus, and final settlement of PF on the last working day.
How does Asanify handle different labor laws across Indian states?
India has 28 states and 8 union territories, each with specific employment regulations. Asanify maintains expertise across all jurisdictions, ensuring compliance with state-specific Shops and Establishments Acts, professional tax rates, holiday calendars, minimum wage notifications, and registration obligations.
Our payroll platform automatically applies the correct rules based on each employee’s work location. So an employee in Bengaluru pays Karnataka professional tax, an employee in Mumbai follows Maharashtra holidays, and an employee in Kolkata is registered under West Bengal’s Shops and Establishments Act. without your HR team mapping any of it manually.
Can I terminate an employee in India, and what are the costs?
Yes, you can terminate an employee in India through Asanify’s employer of record india service, subject to contractual notice periods and statutory dues. Termination requires payment of notice pay (if not served), gratuity (if eligible after 5 years), encashment of unused leave, pro-rata statutory bonus, and final settlement of PF.
For retrenchments in establishments with 100 or more workmen, prior government approval and additional retrenchment compensation may apply under the Industrial Relations Code 2020. Asanify manages compliant termination processes, calculates all separation payments accurately, and issues full-and-final settlement statements within 30 days of the last working day, in line with statutory timelines.
Will using an Employer of Record India create a permanent establishment in India?
No. When you use Asanify as your employer of record india, the formal employment relationship sits with Asanify Technologies Pvt Ltd, our wholly-owned Indian entity registered since 2019. Your foreign parent company never holds the employment contract, never pays Indian salary, and never files Indian payroll, which means there is no fixed-place-of-business or dependent-agent permanent establishment trigger under the India-OECD model treaty.
Asanify handles every statutory filing (TDS, Form 24Q, EPF ECR, ESI returns, professional tax) under the Indian entity’s PAN and TAN. Your parent company receives a single consolidated service invoice in its home currency. We have onboarded customers from the US, UK, Singapore, UAE, Australia, and Germany under this structure with zero permanent establishment escalations to date.
