Employer Of Record in India

We make it easy and painless to expand your business into India. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into India Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in India

As your EOR in India we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in India provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to India with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in India being sure that your staff will be hired in compliance with labor and tax regulations

Table of Contents

Quick Facts

Indian Rupee (INR)

New Delhi

Payroll Cycle:

English, Hindi, and 22 Regional Languages

India Country Facts

India is a country with an impressive culture and heritage. It has something to offer everyone, and is known to have welcoming people from all across the world. India has a famous landmark, the Taj Maha, and rich food which is deliciously flavored, with ingredients and recipes which are unique in all of India’s states.

India is a large country in south Asia surrounded by the Indian Ocean with many topographical features such as the Ganges River valley and Himalayan Mountains.

The Economy

India is the world’s sixth-largest economy. Developing into an open-market economy, India is on a high growth trajectory. But the Indian economy is in an early recovery stage where consumer demand and industrial production is improving. To assist in full recovery, manufacturers can undertake capital expenditure to expand production.

The Importance of Small and Medium-sized Companies

Small and medium-sized enterprises play an important role in the Indian economy. They are a major source of entrepreneurial skills, innovation, and employment. In India and other countries around the globe, SME businesses are the largest contributor to the economy.

Population Characteristics

India lands in the second spot for most populated country in the world with nearly a fifth of the world’s population, which is approximately 1.4 billion people. It’s reported there are 125,344,736 English speakers in India, making India the country with the second largest number of English speakers.

Economic Opportunities

Beginning in the 1990s, India has deregulated several industries. It’s also privatized many state-owned enterprises, and opened doors to foreign direct investment. India is an attractive country for outsourcing and an inexpensive source of imports.

Key Sectors of the National Economy

The best key sectors in this country are:

  • Fintech & Financial Services
  • Biotechnology
  • Auto Components
  • Automobile
  • Agriculture & Forestry

Human Talent
US companies profit from hiring an Indian workforce to work in the country, as they can save a lot of money without compromising on quality. Employers can also get that same work done at a fraction of the price they would have to pay a US employee with the same skills.

Prominent Cities for Business

  • Bangalore
    Bangalore is a city that does well in software engineering and many consider it to be the Silicon Valley of India. This is the country’s top Information Technology (IT) exporter.
  • Delhi
    The major commercial center in Northern India is Delhi. Here companies who work in IT, telecommunications, banking, media, hotels, and tourism will do well.
  • Mumbai
    Every segment of the automobile sector (including two and three wheelers, passenger cars and commercial vehicles) is represented in the city. Many big automobile companies have corporate branches in Mumbai.

Technological Ecosystem

In India technology companies drive growth by creating jobs and increasing access to resources such as education and healthcare, which all results in less poverty and an improved quality of life.

India has already undergone a technological transformation. Its population has moved along an exponential technology curve from barely any connectivity in 2014 to being the second most connected nation in the world, with 560 million internet users, as of this year, surpassed only by China.

Facilities for Foreign Investment

India is an investment-friendly nation and has attracted the attention of leading multinational organizations, such as Amazon, Unilever, Samsung, Adidas, Toyota, Garnier, Panasonic, LG, Microsoft, IBM, Nestlé and Coca- Cola.

India is a large land of many opportunities. Availability of skilled labor and close geographical proximity to markets in southeast Asia and the Middle East,make it incredibly attractive for foreign investment.

Business Culture in India

  • What a Bargain
    A layer of British formality is noticeable in India, which is a positive remnant of their history. However, Indians love to bargain, they consider it an enjoyable event.
  • Know how to greet others properly.
    Indians are very formal upon the first meeting, and if one is elderly, they are respected and deferred to, especially in business. When Indian people bow to another it is a sign of respect for someone’s age or rank.
  • Do not address Indians by their first names or without any higher academic titles.
    This is a sign of informality in the traditional Hindu culture and you may offend someone by doing it.
    Always use last names especially if you are meeting them for the first time.
  • While eating, use a fork and spoon and NOT a knife.
    If you want to impress, use your hand to eat in the way that others around you are. But be sure your left hand is never used on the dining table while eating. Also, do not thank your host after the meal is over, that is frowned upon

India Gastronomy: regional and traditional cuisines

Indian cuisine is well known throughout the world as an experience of spices and diversity. They use more vegetables than many other known cuisines, making their food unique, but there are many local styles.

  • Daal-baati-churma.
    This hearty and iconic dish consists of daal a lentil preparation, baked round baati, a type of bread, then crushed and fried in ghee.
  • Xacutti
    Is a coconut-based curry, or if you like spicy curries vindaloo is for you, which is a fiery curry marinated with garlic and vinegar or wine.

More examples of their cuisine are, Thukpa a hearty noodle soup, momos which is steamed or fried stuffed dumplings, and gyakho, which is another stew. If you ever find yourself in Sikkim, it’s recommended you try tongba, a famous Himalayan millet beer.

General Highlights






New Delhi

Num. States / Province

28 States and 8 Union Territories

Principal Cities

Bangalore, Delhi, Mumbai


Hindi & English

Local Currency

Indian rupee

Major Religion

Hindu, Islam and Christianity

Date Format


Thousands Separator Format


Country Dial Code


Time Zone

India Standard Time (IST) is 5:30 hours ahead of (UTC)


1.4 billion

Border Countries

Afghanistan, Bangladesh, Bhutan, China, Myanmar, Nepal, Pakistan, Sri Lanka, Maldives

Continental surface

3,287,263 km²

Fiscal Year

April 1 – March 31




12.5% – 15% depending on which state


0%-20% depending on which products and

state legislation.

Minimum Wage

176 Indian rupees/day (approximately $2.37 USD)

Taxpayer Identification Number Name in the country

Permanent Account Number (PAN)

Current President

Ram Nath Kovind

What you need to know about employing personal in India:


Brief Description


Constitution of India

The supreme law of India lays down the defining political principles, sets out fundamental rights, directive principles, and the duties of citizens and also establishes the structure, procedures, powers, and duties of government institutions.

Industrial law

The labor and employment law in India.

Tax Code

Income Tax Act.








Indian Social Security


This goes towards the pension for the life of the member of the Social Security System, and is paid out on retirement or disability during employment.

Pensions to members of the family upon death of the employee are as follows:

•       to widow/widower for life or until re-marriage,

•       to children/orphans, up to 2 children younger than 25 years of age

simultaneously with widow/widower pension,

•       to children/orphans with total and permanent disability irrespective of age and number of children in the family,

•       to a nominee in the event of a member who is unmarried or with no

eligible family member to receive pension, and

•       to a dependent father/mother in the event the member dies, leaving behind no eligible family members and no named survivor.

Key Tax and Labor Authorities

Income Tax Authority


The Ministry of Labour and Employment


Simplified and modernized the previous labor regulations of India.

Labor Contracts

Contract Labour Regulation and Abolition Act, 1970

This act regulates the employment of contract labor.



Not all Indian territories need a contract between an employer and an employee. Examples of territories who do are Karnataka and Delhi who require an employer to issue a written employment contract to employees who work in shops and commercial establishments.

Asia-Pacific Trade Agreement (APTA), South Asia Free Trade Area (SAFTA), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)




They are members of these organizations.

Work Hours

Work hours are a maximum 9 hours per day, maximum 48 hours per week.


Minimum Wage

176 Indian rupees/day (approximately $2.37 USD)



Indian labor law with respect to OT (Central and States) says we should make the payment to the worker / employee at double the regular rate of normal wages / salaries



Usually mandatory. This bonus is calculated as a percent of the yearly salary and it must be paid to the employee within eight months of the end of the financial year.




Injury Compensation

Employees’ Compensation Act requires compensation to an employee who has suffered an accident while working resulting:

•       Permanent total disability,

•       Permanent total disability

•       Permanent partial disability,

•       Temporary disability, or

•       Death.


Vacations or PTO

An employee receives one day of earned leave for every 20 days of service to the employer. However, if you employ someone under the age of 15, they are entitled to one day for every 15 days of service.

Leaves of Absence

Employers may have to pay in the case of absences for the following:

Every month an Indian employee will receive 1.25 Vacation Leaves. Or 15

days of yearly leave.

When an employee leaves, they will be paid the funds owed from this

vacation leave if necessary.

Employers Contribution or Labor Cost

Annual Taxable Income

Over this amount

Not over this amount

Tax % on Excess


Up to Rs. 2,50,000


Rs. 2,50,000

Rs. 5,00,000


Rs 5,00,001

Rs. 7,50,000

Rs.12500 + 10% of total income exceeding Rs.5,00,000

Rs. 7,50,000

Rs. 10,00,000

Rs.37500 + 15% of total income exceeding Rs.7,50,000

Rs. 10,00,001

Rs. 12,50,000

Rs.75000 + 20% of total income exceeding



Rs. 12,50,001

Rs. 15,00,000

Rs.125000 + 25% of total

income exceeding Rs.12,50,000

Above Rs. 15,00,000


Rs.187500 + 30% of total

income exceeding Rs.15,00,000

Corporate Tax Rates

If you are a non-resident company, you are taxed on income that is received in India.

Taxable Gross Income

Tax Rate





Disability pension (Disablement Pension, social insurance): A monthly pension based on the insured’s pensionable wages is paid out; under certain conditions, they may pay the pension as a lump sum of total employee and employer contributions plus accrued interest.
The minimum monthly wages used to calculate benefits are 250 rupees. The minimum monthly disability pension is 1,000 rupees. Benefit adjustment: Benefits are adjusted annually, by the central government, based on an actuarial evaluation.

Public Holidays

Company generally decides on which public holidays will be given as paid holidays. Normally it’s in the range of 10–12 per year, including the three mandatory holidays


Holiday Name

26 January

Republic Day

15 August

Independence Day

2 October

Gandhi Jayanti


In most cases, if used, employment contracts are very specific about the process for terminating employ- ment. This eases the process of termination when it is by mutual agreement and when there is a fixed period contract. An employee is terminated at the conclusion of such a contract, unless an employer offers a new contract or the clauses in the initial contract are amended.


Employers often give one month notice, or payment of one month’s wages, when terminating an employee.

Type of Termination

Brief Description

Justified Dismissal

Varies by state, employees in India who are terminated by employers are often given one month notice or payment of one month of wages in lieu thereof.

Unjustified Dismissal

There is legal punitive action towards any employer who does not follow the due process which is defined by state federal laws. The courts can also order the employer to pay fines and award compensation to the employee who was wrongly terminated.

Voluntary Resignation

Varies by state, Voluntary termination means that an employee voluntarily

terminates his/her employment with a company.

Other forms of compensation upon termination include:
There is a severance that US employers must pay their employees in India. Employees who are terminated are entitled to three different types of pay: severance, leave encashment, and gratuity payments.

Length of Employment

Severance Amount

Every completed year of continuous


15 days average pay per year

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