If you want to hire talent in India without setting up a local entity, EOR India services can make it...
Read MoreEmployer of record india
Top EOR Service Providers in India - Hire Employees Globally with Ease
Our EOR solutions in India help international companies hire, manage, and pay employees without a local entity. Fast onboarding (1–2 days), full compliance, and transparent pricing.
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What is Employer of Record in India?
An Employer of Record (EOR) in India allows international companies to hire employees quickly and compliantly without setting up a local entity. As trusted EOR service providers in India, we handle everything from recruitment and onboarding to payroll, taxes, and statutory compliance with Indian labor laws.
Our EOR solutions in India make it simple to build and manage a remote team, ensuring full compliance with regulations like Provident Fund (PF), Gratuity, and TDS. By partnering with us, businesses gain access to India’s top talent while avoiding permanent establishment risks and costly compliance mistakes.
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Benefits of using Employer of Record services in India
Partnering with leading EOR service providers in India gives international businesses a faster, more compliant way to hire and manage employees. Our EOR solutions in India simplify payroll, taxes, and compliance while reducing operational costs and risks. Here’s how your company benefits:
Fast and Compliant Hiring
Onboard employees in India within 1–2 business days while staying compliant with labor laws and state-specific regulations.
Efficient Payroll and Tax Management
We manage payroll in Indian Rupees (INR), handle TDS (tax deducted at source), and ensure accurate Provident Fund, Gratuity, and ESI contributions.
Cost Savings and Simplified Operations
Avoid the high costs of setting up a local entity. With EOR pricing at $199/employee/month, you save time and money.
Risk Mitigation and Compliance Assurance
Eliminate permanent establishment risk and avoid penalties from contractor misclassification with legally compliant employment contracts.
Comprehensive Employee Support
Provide employees with statutory benefits (leave, maternity, health insurance) and optional perks, ensuring retention and satisfaction.
Important considerations for hiring in India
Hiring employees in India requires navigating a complex set of labor laws, payroll rules, and cultural practices. Many global companies partner with EOR service providers in India to manage these challenges. Here are the key factors to keep in mind:
Compliance with Indian Labor Laws
India has strict labor regulations, including working hours (48 hours per week), overtime rules, and leave entitlements. Non-compliance can lead to fines and legal disputes.
Payroll and Statutory Contributions
Employers must contribute to Provident Fund (12%), Gratuity (4.81%), and ESI (3.25% if applicable). An EOR solution in India ensures timely and accurate contributions.
Employment Contracts and Termination Policies
Contracts typically require a 30–90 day notice period. Termination must be justified, and gratuity is payable after five years of service.
Taxation and Employee Benefits
Monthly TDS (withholding tax) compliance is mandatory. Employees are entitled to annual leave, sick leave, maternity leave, and optional health insurance.
Regional and Cultural Nuances
Employment rules vary by state. Public holidays, minimum wages, and professional tax differ across regions, making a nationwide HR approach complex.
How to Hire Employees in India: A Simplified Approach with Asanify
Expanding into India can be complex due to labor laws, payroll rules, and compliance requirements. With our EOR services in India, hiring becomes quick, compliant, and cost-effective. Here’s how the process works with Asanify
Identify Your Hiring Needs and Structure
Define the roles, salaries, and benefits you need for your India-based employees.
Partner with a Reliable EOR for Compliance and Efficiency
As one of the leading EOR service providers in India, Asanify ensures all contracts, payroll, and taxes meet Indian legal standards.
Seamless Onboarding of Your Indian Team
Employees are onboarded in 1–2 business days, with verified documentation (PAN, Aadhaar, UAN, and background checks).
Efficient Payroll and Benefits Management
We manage payroll in INR, ensure TDS compliance, and administer statutory contributions like Provident Fund, Gratuity, and ESI.
Ongoing Support and Compliance Monitoring
From leave management to terminations, our EOR solutions in India provide continuous HR support, ensuring compliance with evolving laws.
Key Aspects of Payroll in India
Managing payroll in India goes far beyond paying salaries. Employers must comply with statutory contributions, tax deductions, and state-specific labor laws. For global companies, these requirements can be challenging—making EOR payroll solutions in India a faster and safer alternative.
Salary Structure
Employee compensation includes basic pay, allowances, bonuses, and statutory deductions.
Statutory Compliance
Employers must contribute to Provident Fund (PF), Gratuity, and ESI where applicable.
Taxation and TDS
Income tax is deducted monthly through TDS (Tax Deducted at Source), requiring accurate calculation and reporting.
Payroll Processing and Reporting
Payroll must be processed monthly in Indian Rupees (INR) with accurate payslips and statutory filings.
Compliance with State and Central Laws
India’s payroll rules vary across states, including minimum wages, leave policies, and professional tax.
Payroll Outsourcing Options
Many companies choose EOR service providers in India to handle payroll efficiently, ensuring full compliance without the need for a local entity.
Standard leave policies in India
Leave entitlements in India are governed by the Shops and Establishments Act of each state, along with company-specific policies. While the exact number of days varies by industry and region, employers must comply with statutory requirements. Partnering with an EOR in India ensures leave policies are correctly applied across states and industries.
- Casual Leave (CL)
- Earned Leave / Privilege Leave (EL/PL)
- Sick Leave (SL)
- Maternity Leave
- Paternity Leave
- Public Holidays / Festival Holidays
- Leave Without Pay (LWP)
How Terminations are Handled in India
Employee termination in India is governed by both central and state labor laws, requiring strict adherence to due process. For global companies, this can be complex—making EOR termination support in India the safest option.
Types of Termination
Termination may be voluntary (resignation) or involuntary (performance, redundancy, misconduct). Layoffs and retrenchment often require state labor authority approval.
Notice Period Requirements
Most contracts require 30–90 days’ notice, depending on seniority and company policy. Pay in lieu of notice is also permitted.
Severance Pay and Final Settlement
Employees with over 5 years’ service are entitled to gratuity. Severance pay may also apply in case of retrenchment. Final settlements include unpaid salary, leave encashment, and statutory dues.
Legal Compliance and Documentation
Proper documentation of cause, notice, and settlement is essential to avoid labor disputes.
Protection Against Unfair Dismissal
Indian labor law protects employees from wrongful termination, ensuring due process and fair treatment.
We are proud partners for some of the finest global companies
Cost-to-Company (CTC) Calculator for Hiring in India
Hiring in India involves more than a salary offer. Payroll in India must account for Provident Fund (PF), ESI, gratuity, TDS, and state-specific rules.
Use this calculator to generate a clean salary breakup and an estimated monthly net. Prefer a hands-off approach? Our EOR solutions in India manage payroll, taxes and compliance for you.
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Read MoreWhat our happy customers of EOR Services have to say
Sammy Sheth
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
Rukhsar Ahmed
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
Jason Biddell
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Jason Palmer
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Steph Freeman
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
Reeba Mehdi
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
Jas Randhawa
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Some Frequently Asked Questions on EOR India
What is Employer of Record (EOR) in India?
An EOR in India legally employs your staff on your behalf, handling contracts, payroll, taxes, and compliance. You manage the day-to-day work; the EOR manages HR, filings, and statutory benefits so you can hire without opening a local entity.
Is Employer of Record legal in India?
Yes. EOR is a compliant employment model in India when labor, tax, and social security laws are followed. The EOR is the legal employer and files PF, ESI, TDS, gratuity, and state-level obligations as required.
How fast can I hire in India through an EOR?
You can usually onboard in 1–2 business days once candidate documents are verified (PAN, Aadhaar, bank details, UAN, ID/education proof, background checks).
How much does an EOR in India cost?
Our pricing is $199 USD per employee per month, plus statutory employer on-costs typically ~17–20% (PF, gratuity accrual, ESI if applicable, professional tax where relevant).
What employer taxes and contributions apply?
Common employer contributions include Provident Fund (12% of basic), Gratuity (~4.81% accrual), and ESI (3.25% if eligible). Professional tax is state-specific. Monthly TDS withholding and filings are required.
Do I need a legal entity to hire in India with an EOR?
No. An EOR lets you hire without setting up a subsidiary. You can test the market, scale up, and later convert to a direct entity if desired.
Does using an EOR reduce Permanent Establishment (PE) risk?
Yes. EOR reduces PE risk because the EOR is the legal employer. However, PE can still arise from how you conduct business (e.g., revenue-generating activities, habitual contracting). Seek tax advice for your structure.
What leave and holidays do employees get in India?
Typical entitlements are ~18–24 days annual leave, ~10–12 public holidays, and ~12 sick days (state-specific). Maternity leave is 26 weeks paid; paternity leave isn’t mandated but many employers offer ~2 weeks.
How are notice periods and terminations handled?
Contracts commonly require 30–90 days’ notice. Termination must be justified and follow due process. Gratuity is payable after 5 years of service; severance may apply in retrenchment/layoff scenarios and can require state approvals.
Can I convert an EOR employee to a direct hire later?
Yes. EOR-to-direct conversion is allowed. We coordinate contract novation, benefits continuity, and compliance handover to your new local entity.
EOR Solutions India — Build Your Team Without a Local Entity
From offer letter to payslip, we run INR payroll, statutory filings, and benefits so you can scale quickly and compliantly across Indian states. Onboard in 1–2 days.