Business · Employer of record
Employer of record in India
Employing someone in India through an employer of record: provident fund and ESI on top of salary after the September 2026 ceiling change, state minimum wages, leave, notice, bonus, gratuity and the new Labour Codes.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- India's four Labour Codes took effect on 21 November 2025, and states are still issuing their own rules, so the details can differ by state.
- Several protections apply only to "workers", which can exclude managers and supervisors on over ₹18,000 a month; for them the state Shops and Establishments Act and the contract matter more.
- The provident fund figures come from Big Four and law firm alerts, because the official pages didn't open for us.
Sources: Ministry of Labour (PIB), December 2025, KPMG, EPFO wage ceiling FAQs, September 2026
Employing someone in India
- Employer costs on top of salary
- Provident fund: 12% of wages (8.33% to the pension scheme, 3.67% to the fund), plus about 1% for insurance and admin charges. The wage ceiling rose from ₹15,000 to ₹25,000 a month on 17 September 2026, and KPMG reports the pension share is capped at the new ceiling too. ESI health insurance: 3.25% for employees earning up to ₹21,000 a month; higher earners are outside it. LKS, EPF calculator, KPMG, EPFO wage ceiling FAQs, September 2026, BDO India, new EPF ceiling, September 2026, ESIC, contribution rates, LKS, ESI under the Social Security Code, June 2026
- Minimum wage
- Set by each state, by skill and zone; there's no national figure yet. For example, Karnataka's rates from 22 May 2026 start at ₹25,714 a month for unskilled work in Bengaluru, for the industries that source covers. BDO India, final central rules, May 2026, India Briefing, Karnataka minimum wage 2026
- Holiday
- Under the new Labour Codes, "workers" earn 1 day per 20 days worked after 180 days. Managers and higher-paid supervisors fall under state law instead: in Maharashtra, for example, 8 days' casual leave plus 18 days after 240 days worked. Three national holidays (26 January, 15 August, 2 October), plus state festival holidays. OSH Code 2020, s.32 (PRS), Maharashtra Shops and Establishments Act, s.18 (lawgist)
- Working hours
- 48 hours a week, 8-hour normal day, with overtime at double pay. KPMG, final rules under the Labour Codes, May 2026
- Probation
- No legal maximum; it's set by the contract. Nishith Desai, notice of termination in India, 2023
- Notice from the employer
- For "workers" with a year's service: one month's written notice, or a month's pay, for retrenchment. For managers, the contract decides. LiveLaw, the Industrial Relations Code, Nishith Desai, notice of termination in India, 2023
- Severance
- Retrenchment pay of 15 days' pay per year of service, plus 15 days' pay into a government re-skilling fund. Gratuity of 15 days' pay per year after 5 years' service (1 year for fixed-term staff), up to ₹20 lakh (the pre-Code limit; a new one under the Labour Codes hasn't been set yet). iPleaders, the Labour Codes in 2026, Ministry of Labour, gratuity ceiling
- Extra pay the law requires
- A statutory bonus of 8.33% (at least ₹100) to 20% a year, worked out on ₹7,000 a month or the minimum wage, whichever is higher. It's paid within 8 months of the year-end to employees earning up to ₹21,000 a month who worked at least 30 days in the year. Code on Wages 2019 (India Code), SCC Online, bonus rules, August 2026
- Contract
- An appointment letter in the official format is required for every worker. Ministry of Labour (PIB)
- Payroll and tax
- Monthly wages by the 7th of the next month; final pay within 2 working days of leaving. The employer deducts income tax from salary. Code on Wages 2019 (India Code), Income Tax Department, s.392
Providers and what they say about India
What each provider's own website says about India, in order of its published starting price. None of them publishes a separate price for India; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers India? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Yes, on its own site | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Yes, on its own site | Says it uses its own entities everywhere | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Has its own page for it | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Not stated | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Yes, on its own site | - | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in India.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanPhilippinesSouth AfricaMexicoBrazilColombiaChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay