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
- Cost-efficient market entry with transparent pricing and local expertise
Happy Customers Globally
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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. As a trusted employer of record EOR platform, we help global companies hiring employees in India without setting up a subsidiary, establishing a legal entity in India, opening a PAN or TAN, or hiring an in-house compliance team. Our EOR services in India are designed to support global expansion while ensuring compliance with Indian labor laws.
From offer-letter generation and onboarding to monthly payroll management, payroll tax withholding, employees provident fund and Employee State Insurance contributions, end-of-service benefit 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 while helping companies manage payroll efficiently and maintain compliance with local laws.
Companies switching to Asanify from generic global EOR providers and other EOR service 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. Unlike many EOR companies, Asanify combines benefits administration, compliance assurance, and localized expertise under a single platform built for hiring in India.
Rapid and Compliant Hiring
Hire Indian employees across India in 24 to 48 hours, not months. Asanify generates locally compliant 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. Indian 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 EOR provider, we step in as the legal employer for every Indian hire. We sign compliant employment agreements, manage payroll, handle payroll tax withholding, contribute to employees provident fund and Employee State Insurance schemes, and manage full-and-final settlements on exit, while you keep day-to-day operational control over what your team builds, ships, and delivers. Partnering with an EOR helps companies hiring in India ensure compliance with labor laws, and local regulations without establishing a legal entity in India.
Here is how an EOR in India engagement works end-to-end:
- Immediate Market Entry: Start hiring employees in India without establishing a subsidiary, branch office, or an entity, with no Shops and Establishments registration required on your side. This model supports global expansion and international hiring while reducing operational complexity.
- Compliant Offer and Onboarding: We generate localized contracts and written employment contracts in 24 to 48 hours, conduct background checks, and complete the onboarding process before day one to support compliant hiring practices and employee management.
- Full Employment Services: We handle monthly salary disbursement, payroll management, employees provident fund contributions, employee insurance compliance, end-of-service benefit accruals, leave entitlements, expense reimbursements, payroll and benefits administration, and final settlements for your team in India.
- Compliance Coverage: Every filing across central legislation, the Wages Act, Indian laws, and state Acts is tracked, filed, and reconciled by our India team to ensure compliance across all employment practices.
- Real-Time Visibility: Monitor onboarding status, global payroll, leave balances, compliance health, and remote employees on a single dashboard. Export Form 16, Form 24Q, and payroll reports any time.
- Risk Mitigation: Asanify holds the employment relationship, helping companies using an EOR reduce permanent establishment risks while supporting international employment and global workforce management in India.
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 (EOR) 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 employer of record EOR signs compliant employment agreements, manages payroll, handles payroll tax withholding, contributes to Provident Fund and Employee State Insurance schemes, manages end-of-service benefits, files mandatory compliance returns, and handles the full-and-final settlement when an employee leaves. Employer of record services are widely used by global companies looking to hire employees in India without setting up a legal entity.
For a global company hiring its first or its hundredth Indian employee, an EOR partner is faster, cheaper, and lower-risk than incorporating an entity in India and building an in-country HR and finance team. Many businesses using an EOR benefit from simplified payroll management, employee management, compliance assurance, and global payroll operations while ensuring compliance with Indian employment laws and tax regulations.
When companies use an Indian EOR
The Indian EOR model fits five common scenarios:
- Expanding into India without an entity: Test the market or hire Indian employees without the cost and complexity of incorporating a subsidiary, obtaining regulatory approvals, or establishing long-term infrastructure. This approach supports global expansion and international hiring strategies.
- Hiring remote Indian employees or distributed teams: Compliantly employ Indian engineers, sales professionals, customer success leads, remote workers, or support staff from anywhere in the world while supporting remote working and global workforce expansion.
- Navigating Indian employment regulations: Stay compliant with Indian employment laws, local laws, minimum wage requirements, working hours regulations, tax regulations, and Income Tax provisions applicable to international employment.
- Reducing time-to-hire: Onboard Indian employees in 24 to 48 hours instead of the months required for entity setup, registrations, and operational approvals. A streamlined onboarding process also helps companies hire talent in India faster.
- Maintaining workforce flexibility: Scale teams up or down without long-term legal commitments, severance pay liabilities, or fixed infrastructure costs while maintaining compliant employment practices.
What the EOR provider handles
A complete employer of record services engagement covers the full Indian employment lifecycle: localized contracts, background checks, mandatory registrations, monthly payroll management in INR, payroll tax withholding, Form 24Q quarterly returns, Form 16 issuance, leave entitlements administration (privilege, casual, sick leave, maternity leave, paternity leave), reimbursement processing, benefits administration, and termination settlements compliant with the Industrial Relations Code, local regulations, and applicable tax regulations.
The EOR provider also handles group health insurance for employees and family members, term life cover, payroll and benefits administration, work-from-home stipends, city-specific allowances, and support for independent contractors transitioning into full-time employment.
Why Asanify is a different kind of EOR provider
Asanify provides complete employer of record services in India through its Indian-registered entity operating since 2019. Unlike many EOR companies and generic EOR service providers, Asanify combines local compliance expertise, global hiring support, payroll management, localized contracts, and knowledge of Indian tax regulations under one platform. Companies partnering with an EOR like Asanify gain direct contractual coverage, compliance assurance, and a scalable foundation for hiring employees in India and managing a distributed team in India efficiently.
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, performance management, and employee management. Our employer of record services help companies hiring international employees ensure compliance with Indian labour laws and local regulations while supporting global expansion.
Fast Market Entry Without Entity Setup
Enter the Indian market in days, not months. Asanify’s EOR services eliminate the need for company registration or establishing a legal entity in India. You can hire Indian employees immediately while we handle all legal employer obligations, labor laws compliance, and local laws applicable to hiring in India. This approach is ideal for businesses building a remote team in India or scaling global hiring operations quickly.
Complete Employment Lifecycle Management
From offer letter to offboarding, Asanify manages the entire employment journey. We draft localized employment agreements, manage monthly payroll management with accurate payroll tax withholding, administer Provident Fund and Employee State Insurance compliance, oversee benefits administration, and ensure compliant termination policies including severance pay and final settlements. Our onboarding process also includes background checks, employee entitlements management, maternity benefits compliance, sick leave, paternity leave, and probation period tracking.
Centralized Visibility and Control
Our unified platform gives you real-time access to global payroll data, compliance documentation, employee records, and mandatory compliance filings. Manage your Indian workforce alongside global teams through a single dashboard with complete transparency into payroll and benefits, compliance health, remote employees management, and HR operations. This centralized approach simplifies managing payroll and international employment for distributed teams and remote workers.
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, scaling your global workforce, and hiring employees in India without establishing an entity.
Compliant Employment Contracts
We draft legally compliant employment agreements and localized employment contracts tailored to Indian labor laws, incorporating central and applicable state regulations, proper compensation structures, working hours, leave entitlements, termination policies, probation period requirements, and confidentiality provisions. All contracts are reviewed to ensure alignment with the Industrial Disputes Act, Shops and Establishments Acts, Wages Act, and other relevant legislation.
Seamless Employee Onboarding
Our onboarding process includes document collection (Aadhaar, bank details, educational certificates), background checks as per Indian standards, UAN generation for Provident Fund, employee insurance registration where applicable, and setting up employees on our payroll management and HRMS platform. Employees are ready to start work within days, helping companies hiring in India accelerate their hiring process and international hiring initiatives.
Payroll Processing and Salary Disbursement
We handle end-to-end payroll management with accurate calculations of gross salary, allowances (HRA, transport, special allowances, dearness allowance), 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. Our global payroll infrastructure supports remote employees, remote workers, and distributed teams efficiently.
Tax Deduction and Payroll Compliance
Asanify manages all payroll tax withholding calculations under Section 192 of the Income Tax Act, files Form 24Q returns, issues Form 16 annually, and ensures proper tax planning support for employees. We stay updated with Finance Act changes, local regulations, minimum wage requirements to ensure compliance throughout the year.
Mandatory Contributions and Social Security
We manage mandatory contributions to Provident Fund and Employee Pension Scheme (EPS), Employee State Insurance where applicable, Labour Welfare Fund, workers compensation obligations, maternity benefits compliance, and other mandatory compliance requirements. All filings are completed accurately and on time to support compliant employment practices across India.
Benefits and Compensation Support
Beyond employee benefits, Asanify administers health insurance, leave and attendance tracking, bonus and incentive processing, reimbursement management, sick leave, maternity leave, paternity leave, and employee entitlements management. We also support compliance with the Maternity Benefit Act, Gratuity Act, and Payment of Bonus Act while helping companies build competitive compensation packages for female employees and global teams.
Employee Support and HR Documentation
Our team provides ongoing HR support to employees in India, handling queries related to payroll and benefits, taxes, leave policies, employment agreements, and HR documentation. We maintain all required registers and records mandated under local laws and provide employment verification letters, experience certificates, and compliance documentation as needed.
Exit Management and Final Settlement
When employment ends, Asanify manages the complete offboarding process including notice period compliance, severance pay calculations, pending salary settlements, leave encashment, final payroll processing, experience certificate generation, and legally compliant separation procedures under Indian labour laws and local regulations.
Employer of Record vs Entity Setup in India
| Criteria | Employer of Record (EOR) | Entity Setup |
|---|---|---|
| Best For | Global expansion, hiring employees in India, rapid hiring process, remote working teams, temporary projects, and international employment | Permanent establishment, large-scale operations (50+ employees), long-term presence, and managing a full legal entity in India |
| Speed to Hire | 3–5 days for first hire with streamlined onboarding process and localized employment contracts | 3–6 months for entity registration, banking setup, local compliance approvals, and operational setup |
| Setup Cost | No setup cost; predictable monthly pricing through employer of record services | ₹5–15 lakhs for incorporation, office lease, banking, compliance infrastructure, and local HR setup |
| Compliance | Fully managed by EOR provider; includes payroll management, employees provident fund, Employee State Insurance, employment laws compliance, and mandatory filings | Your responsibility; requires internal HR, payroll, accounting, and legal teams to ensure compliance with Indian labour laws and local regulations |
| Flexibility | Scale remote employees and distributed teams up or down easily without long-term commitments | Fixed infrastructure investments and higher operational costs if closing the entity in India |
| Legal Presence | No local entity or legal entity in India required when partnering with an EOR | Full legal entity setup required (Private Limited Company, Branch Office, or Subsidiary) |
Employer of Record (EOR) Cost in India: Pricing Guide
Understanding EOR costs in India is essential when planning your market entry strategy. Unlike setting up a legal entity in India, employer of record services operate on a predictable monthly fee structure that scales with your workforce size and supports global expansion without significant upfront investment.
The cost of using an employer of record EOR solution should be evaluated not just as an expense, but as a strategic investment that eliminates setup barriers, accelerates hiring in India, simplifies payroll management, and reduces ongoing compliance management overhead. Many businesses partnering with an EOR benefit from faster onboarding processes, global payroll support, and reduced legal risks associated with, Indian labour laws and local labor laws.
Transparent Pricing Structure
Asanify’s EOR pricing in India is straightforward and transparent. We charge a competitive monthly fee per employee that covers payroll management, payroll taxes, mandatory compliance contributions, HR administration, benefits administration, and ongoing support. A one-time onboarding fee applies for new hires to cover employment agreements, background checks, onboarding process setup, and employee documentation. There are no entity setup costs, no hidden charges, no minimum commitment periods, and no need to engage multiple vendors for payroll and benefits, compliance, and employee management.
What Impacts Pricing?
- Number of employees: Economies of scale apply; per-employee fees decrease as your team in India grows
- Compensation structure: Complex variable pay, incentives, dearness allowance, or equity components may require additional administration
- Benefits requirements: Premium health insurance, maternity benefits, workers compensation coverage, supplemental benefits, or custom perks affect overall cost
- Payroll complexity: Multiple pay cycles, payroll tax withholding requirements, reimbursement policies, or remote working arrangements may impact pricing
- Local regulations: State-specific compliance requirements, local laws, minimum wage standards, working hours regulations, and industry-specific labor laws factor into service delivery
Why EOR Delivers Strong ROI
- Faster market entry: Hire employees in India within days instead of waiting months for entity incorporation and operational approvals
- Reduced overhead: Eliminate the need for internal HR teams, compliance officers, payroll specialists, legal advisors, and additional infrastructure
- Lower compliance risk: Ensure compliance with local regulations, termination policies, and employee entitlements while avoiding penalties and disputes
- Simplified workforce management: Single platform, single invoice, and a centralized approach for managing payroll, remote employees, international employment, and global workforce operations
Who Should Use Employer of Record in India
Asanify’s employer of record services in India are designed for organizations of all sizes that want to access Indian talent quickly, compliantly, and cost-effectively without the burden of establishing an entity or legal entity in India. Our EOR services support global expansion, international employment, and hiring employees in India while ensuring compliance with Indian labour laws and local regulations.
Global Startups Expanding Internationally
Early-stage and growth-stage startups looking to tap into India’s vast talent pool can use an EOR partner to hire employees in India including developers, designers, marketers, and customer support teams without diverting limited resources to entity setup, payroll management, and compliance management. Test product-market fit with local teams before committing to permanent infrastructure while simplifying the onboarding process and global hiring operations.
Technology and SaaS Companies
Tech companies hiring remote employees, remote workers, 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 local laws, working hours regulations, and intellectual property protection requirements. This approach is ideal for companies building a distributed team in India.
HR and People Teams
HR leaders responsible for international hiring use employer of record EOR solutions to eliminate administrative burden, reduce compliance risk, and improve employee management. Focus on talent acquisition and retention while Asanify handles payroll and benefits, leave entitlements, employee entitlements, benefits administration, and employee queries in India through a centralized platform.
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 payroll taxes, global payroll operations, compensation structures, and compliance-related expenses.
Enterprises Scaling Global Teams
Large organizations expanding into India or converting independent contractors into full-time employees can use EOR services to standardize employment practices, ensure compliance, and maintain centralized workforce visibility. This model is ideal for establishing regional hubs, centers of excellence, customer support operations, or long-term business functions in India while avoiding the complexity of setting up a legal entity.
Why Asanify is Different from Generic EOR Providers
While many global EOR providers and EOR companies offer India as part of a multi-country portfolio, Asanify brings deep, specialized expertise in the Indian employment landscape. As a trusted employer of record EOR provider, we understand the nuances of local labor laws, state-specific regulations, and employment practices required for compliant hiring in India.
Our platform is built specifically for the Indian market, ensuring that every aspect of employment compliance—from localized employment contracts and employment agreements to termination policies and final settlements—meets both central and state regulatory requirements. This helps companies hiring international employees ensure compliance while scaling global expansion initiatives.
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 local regulations, minimum wage requirements, working hours policies, maternity benefits obligations, and other labor laws across Indian states and 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 payroll management, payroll taxes, payroll tax withholding, mandatory compliance tracking, leave entitlements, and global payroll operations. Employees access payslips, Form 16, reimbursement submissions, and payroll and benefits information through an intuitive interface, while you maintain real-time visibility into all HR and employee management operations.
Faster Onboarding and Execution
Leveraging local presence and deep market knowledge, Asanify completes the onboarding process in India within 3–5 days. Our streamlined hiring process includes background checks, employees provident fund onboarding, employee insurance registration, and compliant employment agreements, ensuring your remote employees and distributed teams become productive quickly without compromising compliance assurance.
Real-Time Visibility and Reporting
Access comprehensive dashboards showing payroll summaries, compliance health, employee lifecycle events, global workforce analytics, and upcoming filing deadlines. Generate reports for finance teams, auditors, and HR leaders instantly. Our platform integrates with existing HRIS, accounting software, and expense management systems to simplify managing payroll and international employment operations.
End-to-End Workforce Management
Beyond basic employer of record services, Asanify supports the complete employee lifecycle including performance management integration, employee entitlements tracking, benefits administration, learning and development coordination, and strategic HR consulting. We act as an extension of your team, helping companies hire talent in India, support remote working models, and scale a compliant team in India efficiently.
Why Use an Employer of Record in India
India offers exceptional talent across technology, engineering, finance, customer service, and creative industries. However, hiring employees in India comes with complex compliance requirements, and local labor laws that can be overwhelming for foreign companies. Employer of record services remove these barriers while providing strategic advantages for global expansion, international hiring, and remote working operations.
Hire Faster Without Setup Delays
Setting up a legal entity in India involves multiple regulatory approvals, banking relationships, office establishment requirements, and local compliance procedures—a process that can take several months. An EOR in India enables companies to hire employees in India within days, helping businesses secure top talent before competitors. This speed advantage is especially valuable for companies building remote teams in India, expanding global workforce operations, or scaling international employment quickly.
Ensure Compliance from Day One
India’s labor laws include central legislation such as the Code on Wages and Industrial Relations Code, along with state-specific local laws and local regulations governing minimum wage, working hours, employee entitlements, maternity benefits, sick leave, termination policies, and severance pay. Non-compliance can result in penalties, disputes, and operational risks. Asanify’s employer of record EOR solution helps companies ensure compliance with evolving employment practices while reducing legal exposure.
Reduce Costs and Operational Overhead
Establishing and maintaining an entity in India requires significant investment in legal advisors, accounting services, payroll specialists, office infrastructure, and HR operations. Using an EOR converts these fixed costs into a predictable operational model while simplifying payroll management, payroll taxes, payroll and benefits administration, and employee management processes. Businesses also avoid unnecessary administrative overhead associated with entity setup.
Improve Employee Experience
Employees in India expect timely payroll processing, responsive HR support, clear employment agreements, and structured employee benefits. Asanify provides localized support, compliant onboarding processes, global payroll capabilities, and benefits administration to ensure employees receive a professional experience. This includes support for maternity leave, paternity leave, leave entitlements, background checks, and employee documentation management.
Simplify Workforce Management
Managing remote employees and international teams across multiple countries can create operational complexity. Asanify centralizes payroll management, compliance documentation, onboarding processes, employee records, and HR workflows through a unified platform. HR and finance teams gain real-time visibility into global workforce operations while simplifying international employment, managing payroll, and supporting distributed teams efficiently.
India Employment Compliance Checklist for International Hiring
Hiring workers in India requires navigating a complex regulatory framework that spans central government legislation local labor laws, and state-specific employment regulations. International hiring teams and companies hiring employees in India must ensure compliance across multiple domains to avoid penalties, disputes, and operational risks while supporting global expansion.
Employment Contracts under the Code on Wages and Industrial Relations Code
Indian employment contracts and employment agreements must comply with the Industrial Employment (Standing Orders) Act, state Shops and Establishments Acts, the Code on Wages 2019, the Industrial Relations Code 2020, and other labor laws applicable to local entities and foreign employers. Contracts must clearly define compensation, working hours, leave entitlements, termination policies, employee entitlements, and dispute resolution mechanisms.
Fixed-term employment is permitted under specific conditions outlined in the Industrial Relations Code 2020. Localized employment contracts in regional languages may be required in certain states depending on local regulations. Probation periods typically run 3 to 6 months, with shorter notice periods during probation. Employers should also issue a written employment contract outlining responsibilities, compensation structures, and employment practices clearly.
Payroll Tax Withholding under Section 192
Employers must deduct payroll tax withholding from employee salaries under Section 192 of the Income Tax Act. Monthly payroll taxes must account for compensation structures, tax-saving investments declared by employees, and applicable tax slabs under the selected tax regime.
Employers file quarterly Form 24Q returns and issue annual Form 16 certificates by 15 June. Failure to deduct or deposit payroll taxes on time may result in interest charges, penalties, and compliance-related disputes. Proper payroll management and global payroll processes are essential for international employment operations and remote employees working in India.
Tax Rates and Direct Tax Slabs Applicable to Salaried Employees
Employees in India are taxed under either the old regime (with deductions under 80C, 80D, HRA exemption, etc.) or the new regime (lower slabs with fewer deductions). The new regime became the default from FY 2023–24 onwards, although employees may opt out annually based on their tax preferences and financial planning requirements.
Direct tax slabs under the new regime range from 0% (up to ₹3 lakh) to 30% (above ₹15 lakh), with an additional health and education cess applicable. Employers managing payroll must apply the correct slab based on employee declarations and ensure accurate payroll tax withholding throughout the year.
Social Security Contributions: employees provident fund, EPS, Employee State Insurance, and End-of-Service Benefits
Mandatory contributions include employees provident fund contributions at 12% of basic wages, matched by the employer. A portion of the employer contribution is routed to the Employee Pension Scheme (EPS), capped based on salary thresholds applicable under Indian labor laws.
Employee State Insurance applies to eligible employees earning up to prescribed salary limits. Employers must also comply with employee benefits requirements including maternity benefits, sick leave, paternity leave, workers compensation obligations, and leave entitlements applicable under local laws and the Maternity Benefit Act.
Additional state-level contributions and local regulations may apply depending on where employees are located. Companies hiring in India must continuously monitor changes in minimum wage requirements and mandatory compliance obligations across states.
Termination, Severance, and Notice Periods
Termination procedures are governed by the Industrial Disputes Act and the Industrial Relations Code 2020. Notice periods generally range from 30 to 90 days depending on employment agreements, seniority, and employment practices followed by the employer.
For establishments with 100 or more workers, prior government approval may be required for layoffs, retrenchments, and closures. Severance pay is generally calculated based on years of continuous service and compensation structures. Failure to follow proper termination policies can result in disputes, reinstatement claims, and legal exposure for employers.
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. These regulations introduce obligations around consent management, data minimization, purpose limitation, and notification of personal data breaches.
Cross-border transfers of employee data to parent companies abroad are permitted subject to government restrictions and compliance requirements. Employers managing international employment and global workforce operations should implement robust data protection and privacy controls.
Work Permits and FRRO Registration for Foreign Workers
Foreign nationals working in India require valid work permits through an Employment Visa approved by the Ministry of Home Affairs. Business Visas cannot be used for regular employment or long-term workforce engagement in India.
Foreign employees staying more than 180 days must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival. Employers must maintain visa documentation, coordinate renewals, and ensure compliance with immigration requirements for foreign workers and international employees operating in India.
Employer of Record (EOR) Services Across Major Indian Cities
India’s top business and technology hubs each have distinct hiring ecosystems, salary benchmarks, local labor laws and talent availability. Companies expanding into India often choose city-specific hiring strategies based on industry concentration, operating costs, minimum wage requirements, working hours regulations, and access to skilled professionals. Asanify’s employer of record services help global companies compliantly hire employees in India across all major cities without establishing an entity or legal entity in India.
Whether you are building a technology team in Bengaluru, expanding financial operations in Mumbai, establishing customer support in Hyderabad, or hiring leadership talent in Delhi NCR, Asanify ensures compliant onboarding processes, payroll management, payroll taxes administration, benefits administration, and employee lifecycle management. Our EOR services in India support international employment, global workforce expansion, remote employees management, and distributed teams through a centralized platform.
Employer of Record (EOR) in Mumbai
Mumbai remains India’s financial capital and a preferred destination for hiring professionals in banking, fintech, media, consulting, and enterprise sales. Companies hiring in Mumbai often face higher salary benchmarks, local regulations, payroll tax requirements, and intense competition for senior talent. An employer of record EOR solution in Mumbai enables companies to hire employees quickly while ensuring compliance with Maharashtra Shops and Establishments regulations, employee entitlements, payroll and benefits administration, and local labor laws.
Employer of Record (EOR) in Bengaluru
Bengaluru is India’s leading technology and startup hub, home to software engineers, product managers, DevOps specialists, AI professionals, and remote workers supporting global companies. SaaS businesses and technology companies frequently use an EOR partner in Bengaluru to scale engineering and product teams without setting up a local entity. Asanify manages Karnataka-specific compliance requirements, global payroll operations, onboarding processes, background checks, and employee management so businesses can scale technical teams rapidly and compliantly.
Employer of Record (EOR) in Hyderabad
Hyderabad has emerged as one of India’s fastest-growing technology and operations hubs, attracting multinational corporations, SaaS companies, GCCs, and pharmaceutical organizations. The city offers access to engineering, cybersecurity, IT support, and operational talent at competitive costs. Using an EOR in India through Asanify allows businesses to hire talent in India quickly while managing payroll, mandatory compliance obligations, employee benefits, and Telangana-specific local laws efficiently.
Employer of Record (EOR) in Delhi
Delhi NCR is a major center for consulting, enterprise sales, policy, business operations, customer support, and multinational corporate offices. Hiring across Delhi, Gurgaon, and Noida often involves navigating diverse workforce structures, local labor laws, termination policies, and varying compliance requirements. An employer of record EOR provider in Delhi helps companies compliantly employ local employees while simplifying payroll management, international hiring, employee management, and ongoing compliance operations without the complexity of entity setup.
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 employees 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.
