Hire employees in India No entity needed.
Usually, to hire in India, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
India also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in India quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for India built right in
Deel allows you to provide localized benefits for employees in India within minutes. All in one manageable online dashboard.
- Payment of Gratuity Act
Currency: Indian Rupee (INR)
Capital: New Delhi
Official language: Hindi, English & Others
Payroll Cycle: Monthly
Paid Time Off
There is no regulations that govern the number of paid leaves, is ideally to grant paid leaves in the range of 15 to 25 days in a year.
Public holidays depend on the state (there are 30 different states), religion, among others. Employees receive 10 paid public holidays, which are not imposed by the government but rather at the employer's discretion.
Individual Income Tax
The Indian Income-tax laws comprises 2 regimes – new regime and old regime and the taxpayers have the option to choose one of the regimes, which is beneficial to him/ her. The average ranges up to 30% for both regimes.
The employer tax average is 14.46% of employee salary
Employment Contract Details
Employment contracts must be written. The common language used is English and employee and employer should be able to understand the selected language.
Probation period is not mandatory. However, the common practice is 3 months, depending on the seniority of the employee.
Minimum Wage Requirements
In India, is fixed by the State government under the Minimum Wages Act. The minimum wage will be determined by multiple factors including: type of employment, the industry and the location where the employee works.
Maximum working hours and overtime
Working hours will depend on the activity of the employee. The standard working hours are between 8 or 9, and the general weekly limit is 48 hours.
Bonus and expense payments
For employees earning less than INR 21,000 per month, a bonus must be paid. It ranges from 8.33% to 20% of the eligible amount.
Indian laws only cover maternity leave. In the case of paternity leave, an agreement must be made at the discretion of the employer if desired and reflected in the contract.
- Maternity leave: is governed by the Maternity Benefit Act. Under this law, employees are entitled to 26 weeks of maternity leave. Maternity leave is paid in full after completing a minimum of 80 days working for the same company in the 12 months prior to the expected date of birth.
- Paternity Leave: there are no mandatory law for paternity leave in the private sector.
In India, sick leave will depend on each state. Sick leave for Deel will be 12 days. Sick pay amounts 1 day per month which employees accrue throughout the year. Sick leave is paid 100% by the employer
Termination requirements for employees in
If the termination is due to a non justifiable cause, there might be severance costs associated.
If it is a mutual agreement, it should be in place and must be documented.
Employers must give 30 days' notice or payment in lieu to an employee who has worked for at least 3 months, but 2 months is the best practice. During the probation period, it's a 15-day notice. No notice is required for termination due to misconduct.
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Deel is the best!!
“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
A contracting life-changer!
"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
Great service offering!!
"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."
"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"
Deel is a game-changer for distributed teams
"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"
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