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Why Choose Us

What our happy customers of EOR Services have to say

Sammy Sheth Founder & CEO, United HealthCare, USA

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 Managing Director, Green Fulfilment

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 CFO, Intelligent Monitoring Group

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 President, Nobious

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 GM People & Culture, Prospection

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 CEO, Spacejoy

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 CEO and Managing Partner, StrategyBRIX

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.

What is an EOR in India?

Expanding into India offers global businesses access to one of the world’s largest pools of skilled talent—from IT and engineering to customer support and finance. But hiring employees directly can be complex, involving local registrations, compliance requirements, and labor law obligations.

That’s where an Employer of Record (EOR) in India comes in.

An Employer of Record is a trusted third-party partner that acts as the legal employer of your workforce in India. While you manage the employee’s day-to-day work and performance, the EOR takes care of everything else:

- Drafting compliant employment contracts in English or bilingual formats

- Managing monthly payroll in INR and salary disbursements

- Handling statutory contributions like Provident Fund (12%), Gratuity (4.81%), ESI (3.25%), and Professional Tax (varies by state)

- Ensuring compliance with Indian labor laws and government regulations

- Managing tax withholding (TDS) and filings

By outsourcing these administrative and legal tasks, companies can reduce expansion costs, eliminate compliance risks, and focus on growing their operations in India’s thriving economy.

India at a Glance

Population size: 1.43 billion
Currency: Indian Rupee (INR)
Capital city: New Delhi
Languages spoken: Hindi and English (21 other recognized languages)
GDP: USD 3.73 trillion (nominal)

How to Hire & Onboard Employees in India?

Expanding into India can be a game-changer, but hiring employees here comes with complex compliance requirements, multiple registration steps, and strict labor laws. Companies generally have three main options for hiring in India:

Setting up a local entity (subsidiary or branch office)
Hiring independent contractors
Partnering with an Employer of Record (EOR)

Among these, working with an Employer of Record in India is often the fastest, safest, and most cost-effective way to scale your team without legal headaches.

Step 1: Decide on Your Hiring Approach

When entering India, companies must first decide whether to hire:

Full-Time Employees → Stable, long-term hires for critical roles. These require statutory benefits (Provident Fund, Gratuity, ESI, etc.) and come with stricter notice periods and termination rules.
Independent Contractors → Ideal for short-term or project-based work. However, they carry high misclassification risks in India due to strict labor codes.
Through an Employer of Record (EOR) → Best option for global companies that want to hire in 1–2 days without setting up a subsidiary.

Decide Between Full-time Employees and Contractors

Before hiring in India, one of the first decisions companies face is whether to engage full-time employees or independent contractors. Both options come with unique benefits and challenges:

Full-Time Employees
- Best for core, long-term roles where stability and continuity are essential.
- Employees are entitled to statutory benefits such as Provident Fund, Gratuity, ESI, and paid leave.
- Offers stronger loyalty and alignment with company culture.
- Comes with higher costs and stricter compliance, including notice periods and termination rules.
Independent Contractors
- Ideal for short-term projects or specialized expertise.
- Offer flexibility and lower upfront costs since benefits are not required.
- However, they may lack long-term commitment and carry a high risk of misclassification under Indian labor laws.
- Misclassification penalties can include back payment of benefits, fines, and legal disputes.

Click here to learn more: Remote Hiring in India: Independent Contractor vs EOR Employee.

Choose Between Entity Setup or EOR

Criteria	Legal Entity in India	Employer of Record (EOR) in India
Definition	A business legally registered in India to hire employees directly.	A third-party provider that legally employs workers for you, managing compliance, payroll, and HR tasks.
Ownership	Owned by the company or shareholders.	EOR is the legal employer, but you retain operational control.
Employment Contracts	Issued directly by the legal entity.	EOR signs contracts, ensuring compliance with local labor laws.
Compliance Responsibility	Full responsibility for labor law compliance, tax filings, and benefits.	EOR handles all compliance, including PF, Gratuity, ESI, and Professional Tax.
Payroll & Benefits	Managed internally with dedicated HR infrastructure.	EOR manages payroll in INR, benefits, and insurance.
Tax Liabilities	Company assumes all local tax obligations.	EOR ensures TDS deductions and timely filings.
Time to Hire	Entity setup can take weeks or months.	Hire in 1–2 business days (onboarding checklist).
Onboarding Process	Managed internally with HR processes and paperwork.	EOR creates contracts, manages compliance checks, and facilitates onboarding.
Legal Expertise	Requires in-house HR/legal team or external consultants.	EOR provides expert knowledge of India’s labor laws.
Risk & Liability	Company bears all legal and employment risks.	EOR assumes employment-related legal risks.
Flexibility	Less flexible for rapid global scaling.	Highly flexible—hire in India without a local entity.
Cost & Investment	High setup and operational costs.	Lower cost—no entity setup or HR infrastructure needed.
Global Expansion	Requires setting up entities in every new market.	EOR enables quick, compliant entry into multiple countries.

If speed, compliance, and cost efficiency are top priorities, partnering with an EOR India provider like Asanify allows you to start hiring in days while avoiding the complexities and costs of entity setup.

Click here to learn more: Employer of Record vs Own Entity: Choose the Right Global Hiring Strategy.

Step 2: Choose the Best EOR Service Provider in India

Not all Employer of Record (EOR) service providers in India are the same. The right partner can mean the difference between a seamless expansion and costly compliance headaches. When evaluating an EOR in India, consider these factors:

Compliance Expertise: Deep knowledge of state-specific labor laws, Provident Fund, Gratuity, ESI, and Professional Tax.
Payroll Accuracy: Proven ability to run error-free payroll in INR, manage deductions, generate payslips, and handle TDS filings.
Service Flexibility: Whether you need end-to-end HR outsourcing or a payroll-only package, your EOR should adapt to your needs.
Local Presence: On-the-ground support in India ensures smooth employee onboarding, issue resolution, and cultural alignment.
Track Record & Experience: A reliable EOR has demonstrated success with companies of your size and industry, making them a trusted long-term partner.

To help you make an informed decision and choose the right EOR in India, we’ve created a detailed comparison of the best EOR providers in India. Check out our article: Best Employer of Record (EOR) Service Providers in India [2025].

Step 3: Hire and Onboard Your Indian Employees

Onboarding employees in India is more than just paperwork—it’s the first impression your new hires will have of your company. A smooth, compliant process ensures employees feel welcomed, while also keeping your business aligned with Indian labor laws.

With an Employer of Record (EOR) in India, the hiring and onboarding process is simplified into a few key steps:

Candidate Selection: You identify and select the right talent for your team.
Employment Contracts: The EOR drafts and issues a legally compliant employment contract (in English or bilingual format if required).
Background Checks & Documentation: Collection and verification of mandatory documents like PAN, Aadhaar, UAN, education proof, and bank details.
Onboarding & Payroll Setup: The EOR enrolls employees in payroll, benefits (PF, ESI, Gratuity), and state-specific compliance systems.
First-Day Experience & Ongoing Support: While you focus on training and integration, the EOR manages compliance, HR documentation, and issue resolution.

Why this matters: A strong onboarding experience builds trust, reduces early attrition, and ensures employees are fully compliant from day one. With an India Employer of Record, you can focus on building culture and performance, while the EOR handles the compliance-heavy processes.

Click here to learn more: Detailed Onboarding Checklist for Remote Employees in India.

Step 4: Payroll & Compliance Management

Running payroll in India can be challenging for foreign companies due to frequent regulatory updates, multiple state-level rules, and strict tax deadlines. Errors in payroll or statutory deductions not only frustrate employees but can also result in penalties and compliance risks.

An Employer of Record (EOR) in India ensures payroll is managed accurately and compliantly every month. Here’s how:

Salary Processing in INR: Timely disbursement of salaries directly into employees’ bank accounts.
Statutory Deductions & Contributions:
- Provident Fund (12%)
- Gratuity (4.81%)
- Employee State Insurance (3.25% employer / 0.75% employee, if applicable)
- Professional Tax (varies by state)
Tax Withholding (TDS): Accurate calculation, deduction, and filing of employee income tax.
Payslip Generation & Recordkeeping: Digital payslips and compliance-ready reports for audits.
Regulatory Compliance: Alignment with India’s central and state-specific labor laws, Shops & Establishments Acts, and mandatory filings.

Benefits of Employer of Record (EOR) in India

Partnering with an Employer of Record in India (EOR India) provides businesses with a faster, compliant, and cost-effective way to hire and manage talent without setting up a legal entity. Here are the key benefits:

1. Quick Market Entry

EOR services in India enable you to onboard employees within 1–2 business days, eliminating months of entity setup and regulatory hurdles.

2. Compliance with Indian Labor Laws

An India Employer of Record ensures adherence to local regulations including Provident Fund, Gratuity, ESI, and TDS deductions, reducing the risk of penalties and employee misclassification.

3. Cost Savings

With transparent pricing (from $199 per employee per month) and no need for a subsidiary, businesses save significantly on administrative and legal costs.

4. Simplified Payroll & Benefits

EOR service providers in India manage monthly payroll, tax withholding, professional tax, and employee benefits, ensuring smooth HR operations.

5. Reduced Permanent Establishment Risk

Hiring through an EOR lowers PE risk, as your employees are legally employed by the EOR while working exclusively for your business.

6. Access to Top Talent

Expand your workforce in India by leveraging the EOR’s deep local recruitment expertise, helping you find and retain top talent across industries.

7. Flexibility in Hiring

Whether you need a single employee or a large team, EOR services in India allow you to scale quickly without long-term infrastructure commitments.

8. Hassle-Free Exit Management

Termination, notice period compliance, and gratuity settlements are handled seamlessly by the EOR, keeping you compliant with India’s labor codes.

EOR Payroll in India: How It Works and Why It Matters

Managing payroll in India involves navigating complex labor laws, frequent regulatory updates, and state-specific rules. An Employer of Record (EOR) in India simplifies this process by taking full responsibility for salary calculations, tax deductions, statutory contributions, and compliance filings — ensuring your employees are paid accurately, on time, and in full legal compliance.

Key Components of EOR Payroll in India

1. Statutory Deductions and Contributions
In India, payroll compliance requires several mandatory deductions and contributions:

Provident Fund (PF): 12% of basic salary paid by the employer and 12% by the employee, as per the Employees’ Provident Fund Act.
Gratuity: 4.81% of basic salary, payable after five years of continuous service under the Payment of Gratuity Act.
Employee State Insurance (ESI): 3.25% employer contribution and 0.75% employee contribution, applicable to employees earning below the wage threshold.
Professional Tax (PT): Levied monthly in certain states, with rates varying based on salary slabs.
Tax Deducted at Source (TDS): Withheld from salaries according to individual income tax slabs under the Income Tax Act.

Your EOR partner ensures all these contributions are calculated accurately and submitted within the deadlines to the respective government departments.

2. Payroll Processing and Disbursement

Monthly Cycle: Salaries are processed in INR based on attendance, leave data, bonuses, and reimbursements.
Payslips: Digital payslips with a detailed breakdown of earnings and deductions are issued each month.
Direct Bank Transfers: Salaries are deposited into employees’ accounts, ensuring on-time payment.

3. Reporting and Recordkeeping
Employers in India are required to maintain detailed payroll records for at least three years, including:

Salary structures
Attendance and leave data
Statutory filings and challans
Employee tax declarations and Form 16

EOR providers maintain these records in compliance with labour audit requirements and make them easily accessible via HRMS portals.

Suggested Read: Hire Employees in India Through EOR

Why EOR Payroll Matters for Global Companies

Time Savings: No need to learn or manage India’s complex payroll systems.
100% Compliance: Avoid fines from the Labour Ministry or Income Tax Department.
Scalable: Works for both small remote teams and large-scale hiring in India.
Employee Satisfaction: Timely, accurate pay builds trust and reduces attrition.

Partnering with an EOR India provider like Asanify means payroll is handled seamlessly while you focus on business growth.

Taxes in India

When hiring in India through an Employer of Record or setting up a local entity, understanding the country’s tax system is crucial for compliance and financial planning. Below is a complete overview of the taxes, statutory deductions, and contributions that apply to Indian employees and employers in the financial year 2025–26.

New Tax Regime (without most deductions)

India follows a progressive income tax system with two regimes—New Regime (default from FY 2025–26) and Old Regime (with deductions).New Tax Regime (FY 2025–26) – No major deductions, lower rates:

Income Slab	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 to ₹7,00,000	5%
₹7,00,001 to ₹10,00,000	10%
₹10,00,001 to ₹12,00,000	15%
₹12,00,001 to ₹15,00,000	20%
Above ₹15,00,000	30%

Old Tax Regime (with deductions)

Old Tax Regime (FY 2025–26) – Higher rates, but allows deductions (Section 80C investments, health insurance deductions under 80D, HRA, etc.):

Income Slab	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

Additional Points:

4% Health & Education Cess on total tax.
Surcharge for high incomes (10–37% depending on slab).

Section 87A rebate for taxable incomes up to ₹12 lakh under the new regime.

Authoritative Source: Income Tax Department – India

Tax Due Dates in India

Tax due dates in India are important to ensure timely payments and avoid penalties. The Income Tax due dates for individuals and businesses typically include quarterly advance tax payments, with deadlines in June, September, December, and March. Companies must file annual tax returns, typically by July 31st of the assessment year. Additionally, employers must ensure timely submission of tax deductions, such as Tax Deducted at Source (TDS), to the government by the 7th of each month. Adherence to these deadlines is crucial to avoid late fees and fines.

Tax Thresholds in India

India has progressive tax rates based on the income level of individuals. For individual income tax, there are different tax slabs based on income thresholds, which change periodically through the annual budget. For instance, individuals earning up to INR 2.5 lakh annually are exempt from income tax, while those earning above this threshold are taxed at rates ranging from 5% to 30%, based on their income bracket. Additionally, businesses must comply with corporate tax rates, which generally range from 25% to 30%, depending on the company’s turnover and other factors. It’s important to understand these thresholds to determine the amount of tax to be paid.

Tax Deducted at Source (TDS)

Employers must calculate and deduct TDS on salaries monthly as per applicable slabs and remit it to the government by the 7th of the following month.

TDS applies to:

Salaries
Professional fees
Certain allowances and bonuses

Non-compliance can result in penalties and interest charges.

Professional Tax

Levied by state governments (see state-wise PT rates in India).

Deducted monthly from employees’ salaries.
Varies by state — e.g., Maharashtra: ₹200/month; Tamil Nadu: ₹1,250/half-year.
Employers are responsible for timely deduction and remittance.

Deductions and Exemptions

India’s income tax system provides a range of deductions and exemptions that can help reduce an individual’s taxable income. Some common deductions include:

Section 80C: Deductions for investments in specified savings schemes, such as Public Provident Fund (PPF), National Savings Certificates (NSC), and life insurance premiums.
Section 80D: Deductions for premiums paid on health insurance policies for self and dependents.
Section 10(13A): Exemption for house rent allowance (HRA) paid to employees, provided they meet specific criteria.

Employers can help employees optimize their tax liability by advising on eligible deductions and exemptions. Ensuring employees are aware of these can lead to significant savings in their annual tax liabilities.

Provident Fund (PF):

Employer Contribution: 12% of basic salary + dearness allowance.
Employee Contribution: 12% of basic salary + DA.
Contributions are tax-exempt under Section 80C of the Income Tax Act (up to ₹1.5 lakh/year).
Managed by the Employees’ Provident Fund Organisation (EPFO).

Employee State Insurance (ESI):

Applicable to employees earning ≤ ₹21,000/month.
Employer Contribution: 3.25% of gross salary.
Employee Contribution: 0.75% of gross salary.
Covers employee healthcare benefits in India, maternity, disability, and other social security benefits.

Gratuity

Applicable after 5 years of continuous service.
Calculated as 4.81% of basic salary per year of service.
Tax-free up to ₹20 lakh upon retirement/resignation.

Labour Welfare Fund (LWF)

Applicable in select states (e.g., Karnataka, Maharashtra).
Small monthly/annual contribution shared by employer and employee.
Used for employee welfare programs in India.

Key Corporate Tax Notes

Domestic companies: 25–30% depending on turnover.
Foreign companies: 40% on income earned in India.
GST (0–28%) applies to goods/services, not employment relationships.

Asanify’s Support For Employee Tax Optimization

With Asanify’s Employer of Record services in India, you get:

Automated payroll with accurate statutory deductions.
TDS, EPF, ESI, and Professional Tax filings handled end-to-end.
Real-time compliance tracking.

Expert tax optimization advice for employees.

Suggested Read: Register a Company in India: Everything You Need to Know

CTC Calculator for Hiring Employees in India

When hiring employees in India—whether through your own legal entity or an Employer of Record (EOR)—understanding the Cost to Company (CTC) is essential. CTC represents the total annual expenditure a company incurs for an employee, including fixed salary, bonuses, statutory contributions, and benefits.

However, many employers and candidates focus only on the gross salary, overlooking deductions like Provident Fund (EPF), Employee State Insurance (ESI), and Professional Tax, which affect the final take-home pay.

Our interactive CTC Calculator helps you:

Break down salary components into basic pay, allowances, and employer contributions.
Understand statutory deductions like TDS, EPF, and ESI.
Compare gross salary vs. in-hand pay instantly.

Get accurate cost estimates for hiring in different Indian states.

Pro Tip: When hiring via an EOR in India, you can align the calculator results with local payroll compliance to avoid surprises in your monthly costs.

Leave Policies in India: What Employers Must Know in 2025

When hiring employees in India—whether directly or through an Employer of Record in India—it’s essential to comply with statutory leave entitlements under Indian labour laws. Leave policies must be clearly documented in employment contracts and communicated to employees from day one.

Standard Leave Policy in India

While leave rules can vary slightly by state, the following types of leave are common under Indian employment law:

Leave Type	Description	Duration
Earned Leave	Paid leave for vacation, personal time off, etc.	15 working days per year
Sick Leave	Paid leave for illness or medical reasons	12 calendar days per year
Casual Leave	Paid leave for general purposes	12 calendar days per year
Maternity Leave	Paid leave for childbirth and recovery	14-26 weeks (depending on service)
Bereavement Leave	Paid leave for grieving a family member	2 days

The standard leave policy in India includes various types of leave, and it is important to ensure that employees are aware of their entitlements. Indian labor laws mandate the provision of paid leave, sick leave, and other statutory leaves for employees, and these must be incorporated into employee agreements. Many businesses also offer additional leave benefits to attract and retain talent.

Suggested Read: Types of Leaves in India

Types of Leaves in Indian employment laws:

Earned Leave (EL) or Privilege Leave

Employers grant Earned Leave (EL), also known as Privilege Leave (PL), to employees for personal time off. Employees typically accrue this leave over time based on the number of days they work, using it mainly for vacations or personal reasons. Employees earn one day of leave for every 20 days of work, or as per their company policy.

Casual Leave (CL)

Casual Leave (CL) is provided to employees for short-term absences due to unforeseen events, personal matters, or emergencies. This leave accommodates immediate or short-notice situations, such as family emergencies or minor illnesses. It is typically non-cumulative and cannot be carried forward to the next year.

Sick Leave (SL)

Sick Leave (SL) is provided to employees who are unable to perform their duties due to illness, injury, or medical conditions. This leave ensures that employees are not financially impacted when they are unwell, allowing them to take time off to recover without losing their income.

Maternity Leave

Maternity Leave is a statutory benefit for female employees, granted for childbirth. The Maternity Benefit Act of 1961 ensures that female employees receive paid leave to care for their newborn and recover from childbirth. Employers in India must provide female employees with 26 weeks of paid maternity leave for the first two children and 12 weeks for subsequent children.

Paternity Leave

Paternity Leave is a type of leave granted to male employees following the birth of their child. This leave allows new fathers to support their partners during childbirth and spend time with their newborn. While paternity leave is not as widely mandated as maternity leave, many companies offer it to male employees as part of their employee benefits package.

Bereavement Leave

Bereavement Leave is provided to employees who experience the death of a close family member, offering them time off to mourn and attend to funeral arrangements. This leave is crucial for ensuring that employees can take the necessary time to grieve without worrying about their professional obligations.

Marriage Leave

Employers provide Marriage Leave to employees who are getting married. This leave allows employees time to focus on wedding arrangements, ceremonies, and celebrations. It is typically offered as a special leave benefit, separate from regular annual or casual leave.

Sabbatical Leave

Sabbatical Leave is a longer-term leave option provided to employees for personal reasons, study, travel, or rest. It is typically an unpaid leave, though some organizations may offer partial compensation during the sabbatical period. Organizations commonly offer sabbaticals in academic, research, or nonprofit sectors. However, some companies across various industries also provide this option to foster long-term employee engagement and creativity.

List of General Public Holidays in India 2025

In addition to earned and casual leave, employees are entitled to public holidays, which vary by state but typically include national celebrations and major religious festivals.

Date	Occasion	Category
26 January 2025	Republic Day	General Public Holiday
14 March 2025	Holi	General Public Holiday
18 April 2025	Good Friday	General Public Holiday
30 March 2025	Id-ul-Fitr	General Public Holiday
15 August 2025	Independence Day	General Public Holiday
16 August 2025	Janmashtami	General Public Holiday
2 October 2025	Gandhi Jayanti	General Public Holiday
2 October 2025	Dussehra	General Public Holiday
20 October 2025	Diwali	General Public Holiday
25 December 2025	Christmas Day	General Public Holiday
12 May 2025	Buddha Purnima	Optional Holiday
7 June 2025	Bakrid	Optional Holiday
27 July 2025	Muharram	Optional Holiday
5 September 2025	Id-e-Milad	Optional Holiday
5 November 2025	Guru Nanak Jayanti	Optional Holiday
24 December 2025	Christmas Eve	Optional Holiday

Why EORs Make Leave Compliance Easier

Managing multiple leave types—while also accounting for state-specific laws and industry agreements—can be complex. An EOR partner like Asanify:

Creates compliant leave policies for your Indian workforce.
Tracks and accrues leave balances.
Integrates leave policies into payroll calculations for accurate payouts.
Updates policies automatically when regulations change.

Employee Benefits in India

Employee benefits are a crucial aspect of the compensation package offered by companies in India. These benefits not only help attract and retain top talent but also contribute to employee well-being and job satisfaction. In India, employee benefits can be broadly categorized into statutory and supplementary benefits.

Statutory Benefits in India

Statutory Benefits are benefits that are mandated by Indian labor laws and regulations. These benefits ensure that employees are given their legal entitlements, and employers are compliant with national employment standards. Some of the key statutory benefits in India include:

Provident Fund (PF): Employees contribute a portion of their salary to a retirement fund, and the employer matches the contribution. PF is mandatory for establishments with 20 or more employees.
Employees’ State Insurance (ESI): ESI provides medical benefits, disability compensation, and maternity benefits to employees earning below a certain threshold (currently ₹21,000 per month).
Gratuity: As mentioned, gratuity is a statutory benefit payable to employees who have worked for five or more continuous years with the company.

Supplementary Benefits in India

Employers offer supplementary benefits to enhance the overall compensation package and boost employee satisfaction. These benefits go beyond statutory requirements and aim to improve employees’ quality of life. Some of the common supplementary benefits in India include:

Health Insurance: Employer-provided health insurance covers medical expenses, hospital stays, and treatments. This benefit is increasingly common among Indian employers.
Performance Bonuses: In addition to statutory bonuses, employers often provide performance-based bonuses to reward employees for meeting or exceeding targets.
Company Stock Options: Some companies offer stock options or equity as part of their long-term incentive plans.

Asanify’s Flexible Benefits Plan for EOR Employees

Asanify offers a Flexible Benefits Plan (FBP) that lets employees structure their salary for maximum tax savings while remaining fully compliant with Indian tax laws. This plan includes:

Flexible Benefits Components	IT Section	Old Tax Regime	New Tax Regime	Annual Maximum Amount (₹)
Meal or Food Allowance	Section 10	Applicable	Not Applicable	39,600
Fuel Allowance	Section 17	Applicable	Not Applicable	28,800
Mobile and Internet	Section 17	Applicable	Not Applicable	24,000
Gift Wallet	Section 17	Applicable	Not Applicable	5,000
Attire/Apparel	Section 10	Applicable	Not Applicable	36,000
Books and Periodicals	Section 10	Applicable	Not Applicable	36,000
Total				1,69,400

Terminations in India

Termination laws in India are designed to protect both employers and employees. The process differs for contractors and full-time staff, but in all cases, compliance is essential.

Types of Termination:

For Cause – Misconduct or policy violation; no notice period required but due process is mandatory.
Without Cause – Downsizing or restructuring; requires notice (1–3 months) or severance pay.
Collective Termination – Mass layoffs require government approval for companies with 100+ employees.
Voluntary (Resignation) – Employee-initiated; must serve contractual notice.

Key Steps for Employers:

Serve the Notice Period as per contract or applicable law.
Full & Final Settlement – Clear all dues including salary, unused leave, gratuity, and bonuses.
Maintain Documentation – Keep termination letters, payment proofs, and exit interview records.

When using an Employer of Record in India, the EOR manages all termination procedures, ensuring compliance with the Industrial Disputes Act, notice rules, and severance requirements.

Notice Periods in India

In India, the notice period refers to the time an employee or employer must give before ending the employment contract. Under the Industrial Employment (Standing Orders) Act, notice periods are mandatory for both parties and depend on the employment contract. Typically, the notice period for an employee ranges from one to three months, based on the agreement.

Severance Pay in India

In India, employers typically provide severance pay when terminating an employee’s employment, whether voluntarily or involuntarily. Under the Industrial Disputes Act of 1947, employers are required to pay severance to employees with at least one year of continuous service. Specifically, severance pay is calculated as 15 days of salary for each completed year, based on the employee’s last drawn wages, including basic salary and dearness allowance. Severance pay is a statutory benefit that ensures employees receive financial support as they transition to new employment.

Key points:

Legal Compliance: Termination policies in India must adhere to statutory requirements such as notice periods, severance pay, and procedural fairness.
Documentation: Employers must maintain thorough documentation of the reasons for termination, communications, and any supporting evidence.
Employment Contracts: Clear employment contracts are crucial for outlining termination procedures, including the notice period and severance entitlement.
Employee Rights: Employers must honor employee rights, such as severance pay and compensation for unused leave, during the termination process.

What are the key steps involved in terminating employees in India?

1. Serve Notice Period

The notice period is a mandatory time that both the employee and employer must provide before the termination of the employment contract. As per the Industrial Employment (Standing Orders) Act, employees must give a notice period, which can vary between one to three months, depending on the employment agreement. Employers must also honor this notice period unless the termination is for a cause.

2. Termination for Cause

Employers terminate an employee for cause when the employee breaches company policies or engages in misconduct. In these cases, employers generally do not need to provide the standard notice period but must allow the employee to present their defense. Typical grounds for termination for cause include theft, insubordination, dishonesty, or violation of company rules.

3. Full and Final Settlement

After the notice period is served or the termination is completed, a full and final settlement is carried out. This settlement includes:

Outstanding salary
Leave encashment for unused leaves
Gratuity (if applicable)
Bonus payments (if due)
Any other pending financial obligations

Employers must promptly pay employees and make proper statutory deductions, such as taxes and provident fund contributions.

4. Documentation

Proper documentation is essential when terminating an employee to ensure legal compliance and avoid future disputes. This includes:

A formal termination letter outlining the reason for termination, notice period, and other details.
Exit interview reports (if applicable).
Acknowledgment of receipt of all due payments and benefits by the employee.
Legal documentation, such as severance pay records, which confirm that the employee’s rights have been honored.

Recommended Read: How to Hire in India Easily- 10 Key Considerations

Visa Types in India

When hiring foreign talent in India—whether directly or through an Employer of Record (EOR) India partner—understanding the visa and work permit process is essential for legal compliance and a smooth onboarding experience.

Asanify offers end-to-end visa support, including:

Document collection & verification
Liaising with Indian authorities
Tracking approvals & renewals
Ensuring compliance with the Ministry of Home Affairs (MHA) and Foreigners Regional Registration Office (FRRO) requirements

If you choose to handle the process independently, here’s what you need to know.

Employment Visa (Work Permit) in India

The Employment Visa is mandatory for foreign nationals hired in India for a role that requires specialized skills, knowledge, or senior management expertise.

Eligibility Requirements (2025):

Valid passport (minimum 6 months validity)
Confirmed job offer from a registered Indian company
Salary must generally exceed USD 25,000 per year (exceptions for teaching roles, NGOs, or certain specialists)
Qualifications and experience relevant to the position
Employment contract detailing job role, duration, and compensation

Validity: Usually issued for 1 year; renewable in-country for the duration of the employment contract.

Processing Time: Typically 2–8 weeks depending on the applicant’s country of origin.

Application Documents:

Passport + copies
Recent photographs (per Indian Embassy specs)
Job offer letter & employment contract
Proof of employer registration in India (e.g., Certificate of Incorporation)
Letter of recommendation from employer

Useful Websites:

Indian Visa Online: https://indianvisaonline.gov.in/visa/
e-FRRO Portal: https://indianfrro.gov.in/eservices/home.jsp
Ministry of Home Affairs (Visa Division): https://www.mha.gov.in/division_of_mha/visa-division

Visa Application Process for Working in India

Step 1 – Job Offer & Contract
Secure a formal job offer from your Indian employer or EOR India provider.

Step 2 – Embassy/Consulate Submission
Apply at the Indian Embassy/Consulate in your home country. Submit all required forms and fees.

Step 3 – Verification
Indian authorities verify your employer’s credentials, job role, and compliance with salary thresholds.

Step 4 – Visa Issuance
Receive your Employment Visa in your passport.Step 5 – Travel & Registration
Enter India and complete FRRO registration within 14 days if your stay exceeds 180 days.

FRRO Registration in India

Long-term Employment Visa holders must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival.

Required Documents:

Passport & visa copy
Residential proof in India (rental agreement, utility bill)
Employer’s letter confirming employment
Recent photographs
Completed registration form

Why It Matters:
Failure to register can result in penalties, visa cancellation, or even deportation.

Other Common Visa Categories for Business in India

While the Employment Visa is the most common for hiring, other visa types may apply:

Business Visa – For foreign nationals engaging in business meetings, setting up joint ventures, or exploring investment opportunities in India. Not valid for employment.
Project Visa – Issued to foreign workers employed in specific projects in the power and steel sectors.

Intern Visa – For foreign nationals interning in India at companies, NGOs, or educational institutions.

How to Choose the Right EOR India Services?

When hiring employees in India through an Employer of Record, choosing the right partner can make or break your market entry strategy. Here’s what to look for:

1. Expertise and Local Knowledge

Your EOR must have deep knowledge of Indian labor laws, tax regulations, and employee benefits. This ensures smooth compliance and reduces the risk of legal issues.

2. Comprehensive Service Offerings

A strong EOR handles payroll, tax filings, compliance management, onboarding, and benefits administration under one roof, so you don’t need multiple vendors.

3. Scalability and Flexibility

Your workforce needs will evolve—your EOR should be able to scale from 1 hire to 100+ employees and adapt to changing market demands.

4. Technology and Data Security

Given India’s Digital Personal Data Protection Act, choose an EOR that uses secure payroll/HR platforms and complies with all data privacy rules.

5. Compliance and Risk Management

An experienced EOR keeps you compliant with labor laws, handles audits, and updates you on regulation changes—reducing your exposure to employment-related legal risks.

6. Reputation and Client References

Ask for case studies, testimonials, and client references. A proven track record with global companies is a strong trust signal.

7. Transparent Pricing and Clear Contracts

Ensure no hidden costs. Contracts should clearly define scope, deliverables, timelines, and service-level agreements.

8. Strong Local Network

A well-connected EOR has relationships with Indian tax, legal, and HR professionals, ensuring faster problem resolution.

Benefits of Working With an Employer of Records Service Provider in India

Partnering with an EOR isn’t just about compliance—it’s about enabling faster, smoother expansion.

Compliance and Legal Expertise – Stay up to date with Indian labor, tax, and employment laws without building an internal HR compliance team.
Time & Cost Savings – No need to set up a legal entity, hire local HR staff, or manage multiple vendors.
Swift Market Entry – Start hiring within days instead of months.
Local HR Support – Onboarding, grievance handling, and cultural alignment managed locally.
Flexibility and Scalability – Easily grow or reduce headcount without the headaches of direct employment.
Risk Mitigation – Reduce exposure to wrongful termination claims or labor disputes.
Cultural & Language Bridge – Local experts navigate business etiquette and communication styles.

Focus on Core Business – You handle growth; your EOR handles HR, payroll, and compliance.

Conclusion: EOR India

The Employer of Record (EOR) India model is an invaluable tool for businesses seeking to hire and manage employees in India without the complexities of setting up a local entity. By partnering with an EOR India provider, businesses can ensure compliance with India’s complex labor laws, streamline HR functions, and mitigate risks associated with payroll, taxation, and employee benefits administration. With benefits such as swift market entry, risk management, and scalability, the EOR model offers businesses a cost-effective, flexible, and efficient solution for workforce management in India.

For companies looking to enter the Indian market or expand their global workforce, partnering with an EOR India provides both strategic and operational support. The EOR service handles the legal and administrative complexities of hiring in India, from legal and regulatory compliance to employee benefits and payroll, allowing businesses to focus on their core activities and growth.

FAQs about EOR India

What is an Employer of Record (EOR) in India?

An Employer of Record in India is a third-party service provider that legally employs workers on your behalf. The EOR manages payroll, tax compliance, HR administration, and statutory contributions, allowing you to hire talent in India without setting up a local legal entity.

How does an EOR service in India help global companies?

EOR services in India simplify international hiring by managing contracts, payroll, employee benefits, and compliance with Indian labor laws. This reduces risks such as permanent establishment and ensures quick onboarding, helping global companies scale their workforce without establishing a subsidiary.

What is the cost of Employer of Record services in India?

The pricing for EOR services in India typically starts from $199 per employee per month, plus mandatory employer taxes (~17–20%). Costs include statutory contributions like provident fund, gratuity, and ESI. This model is cost-effective compared to incorporating a local entity.

How fast can I onboard employees in India with an EOR?

With EOR service providers in India, onboarding usually takes 1–2 business days, provided all documents such as PAN, Aadhaar, bank details, and proof of education are submitted. The EOR ensures compliance with registration and payroll setup, enabling quick hiring.

Is it legal to use Employer of Record services in India?

Yes. Using an Employer of Record in India is fully legal as long as the EOR complies with labor laws, taxation rules, and statutory benefits. Many multinational companies use EORs to reduce compliance risk while hiring employees in India without a local office.

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.