India at a glance
Taxes in India
Employer Contributions
Total employer contributions: ~15%–25% (varies by wage level and eligibility)
| Contribution Type | Rate |
|---|---|
| Employees' Provident Fund (EPF) | 12% of basic + dearness allowance |
| Employees' State Insurance (ESI) | 3.25% of gross wages (employees earning ≤ ₹21,000/month) |
| Employees' Deposit Linked Insurance (EDLI) | 0.5% (capped at ₹15,000 wage base) |
| EPF Administrative Charges | 0.5% of EPF wages |
| Gratuity accrual | ~4.81% of basic pay (payable after 5 years' service) |
| Statutory Bonus (where eligible) | 8.33%–20% (for employees earning ≤ ₹21,000/month) |
Total employer contributions: ~15%–25% (varies by wage level and eligibility)
| Contribution Type | Rate |
|---|---|
| Employees' Provident Fund (EPF) | 12% of basic + dearness allowance |
| Employees' State Insurance (ESI) | 3.25% of gross wages (employees earning ≤ ₹21,000/month) |
| Employees' Deposit Linked Insurance (EDLI) | 0.5% (capped at ₹15,000 wage base) |
| EPF Administrative Charges | 0.5% of EPF wages |
| Gratuity accrual | ~4.81% of basic pay (payable after 5 years' service) |
| Statutory Bonus (where eligible) | 8.33%–20% (for employees earning ≤ ₹21,000/month) |
Income tax: 0%–30% | Social security: ~12.75%
| Contribution Type | Rate |
|---|---|
| Employees' Provident Fund (EPF) | 12% of basic + dearness allowance |
| Employees' State Insurance (ESI) | 0.75% of gross wages (if earning ≤ ₹21,000/month) |
| Professional Tax (state levy) | ₹0–₹200/month (varies by state) |
| Annual Income (INR) | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Employer of Record in India
How Remote& EOR Works
Remote& acts as the legal employer of your Indian workers — managing EPF/ESI registrations, TDS (tax deducted at source), payroll, and employment contracts in accordance with India's labour laws and state-level Shops & Establishments Acts, while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files EPF/ESI/TDS, administers statutory benefits, ensures Labour Code and state-law compliance |
| Employee | Works for your company under a locally compliant Indian contract |
Ask Remi:
"Hire a senior software architect in Bangalore — ₹30,00,000/year, starting next month" Remi handles everything: contract, EPF/ESI registration, TDS setup, gratuity accrual, and payroll.
Benefits in India
- Employees' Provident Fund (EPF): Mandatory for establishments with 20+ employees. Employer contributes 12% of basic + DA (8.33% goes to EPS pension fund, capped at ₹1,250/month; balance to EPF)
- Employees' State Insurance (ESI): Mandatory for employees earning ≤ ₹21,000/month. Covers sickness, maternity, disability, and workplace injury. Employer contributes 3.25%
- Gratuity: Statutory payout of 15 days' wages per completed year of service, payable after 5 years of continuous employment
- Statutory Bonus: Applicable to employees earning ≤ ₹21,000/month — minimum 8.33% of salary, up to 20%
- Group medical and life insurance
- Outpatient, dental, and vision coverage
- Internet and telecom allowance
- Meal and food vouchers (Sodexo/Zeta)
- Transportation support
- Employee stock options / RSUs
- Education and professional development assistance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Earned/Privilege Leave | 12–30 days per year (state-specific) |
| Casual Leave | ~6 days per year (urgent personal matters) |
| Sick Leave | 15 days |
| Public Holidays | 3 national holidays + 7–14 state/festival days |
| Maternity Leave | 26 weeks (first two children); 12 weeks for subsequent children or adoption |
| Paternity Leave | Not mandated in the private sector — company policy applies |
Employment conditions
Probation
Probation terms must be specified in the employment contract. Six months is typical; no statutory maximum applies at the central level (some state-level Shops Acts may vary).
Social Security Registration
Employers must register eligible employees with EPF and ESI within defined timelines. EPF applies to establishments with 20+ employees; ESI applies for employees earning ≤ ₹21,000/month.
Employee Rights & Protections
Indian workers are entitled to: trade union membership rights, protection from unfair dismissal, safe and dignified working conditions, equal remuneration, maternity benefits, and protection against child and forced labor.
Payments
End of employment in India
India does not recognize at-will employment. Termination must follow statutory procedures, with notice and compensation requirements set by labour laws. "Workmen" (employees in non-supervisory roles in establishments with 100+ workers) require government approval for retrenchment. All employees are entitled to proper notice and severance as specified by applicable law and contract.
Frequently asked questions
Four routes: run payroll from HQ for short-term arrangements; engage contractors (valid for genuinely independent work — Remote& supports contractor classification); establish an Indian entity for direct employment; or use Remote& as Employer of Record — covering EPF, ESI, TDS, and state-law compliance without local registration.