Employer of Record · India

Hire in India without setting up an entity

Asiacruit becomes your legal employer in India. We handle contracts, payroll, EPF, ESI and TDS so you can hire without the cost and delay of setting up a Private Limited Company.

12%

Employer EPF contribution

of basic wages plus DA

3.25%

Employer ESI contribution

for eligible employees

15 days

Gratuity per year of service

of wages, after the qualifying period

72 hours

Typical onboarding

from submitted details

Asiacruit’s Employer of Record Services in India Starts at $199 per employee per month.

Market overview

Why foreign companies hire in India

India has one of the largest talent pools in the world, with particular depth in software engineering, finance and operations.

Employment rules combine national law with state-specific requirements, which is why many foreign companies use an Employer of Record instead of incorporating a Private Limited Company.

Deep technical talent

A large pool of engineers, developers, analysts and finance professionals.

Business-ready English

English is widely used in professional work, which reduces onboarding friction.

Time zone fit

India Standard Time (UTC+5:30) overlaps well with Europe, the Middle East and Asia-Pacific.

Quick reference

India employment snapshot

The essentials of employing people in India, on one page.

Topic	What applies
Currency	Indian rupee (INR)
Working hours	Set by state rules, generally up to 48 hours a week
Probation	Set by the employment contract and company policy, commonly 3 to 6 months
Contract types	Permanent, fixed-term and probationary employment, plus independent contractors
Minimum wage	Set by state, industry and skill level
EPF (Provident Fund)	12% of basic wages plus DA from the employer and 12% from the employee. Mandatory up to a ₹15,000 monthly wage ceiling.
ESI (State Insurance)	3.25% employer and 0.75% employee, for employees earning up to ₹21,000 a month
Gratuity	15 days of wages for each completed year of service once the qualifying period is met
Professional tax	Levied by some states only, with rates that differ by state
Maternity leave	26 weeks for the first two children (Maternity Benefit Act)
Paternity leave	No statutory paternity leave for private-sector employees, though many employers offer it
Notice period	Set by contract and state rules, commonly 30 to 90 days, or pay in lieu
Income tax	TDS on salary, withheld monthly by the employer
Labour Codes	Four national codes (wages, industrial relations, social security, occupational safety) set the framework, while state rules still vary

Hiring options

How foreign companies hire in India

Foreign companies have three main routes to hire in India.

	Employer of Record (Asiacruit)	Own Private Limited Company	Independent contractor
Time to first hire	As little as 72 hours	Several weeks of incorporation before payroll	Immediate
Setup cost	None	Incorporation, registered office and director requirements	None
Compliance	Handled by Asiacruit	Ongoing ROC, tax and labor filings that are your responsibility	The contractor's, with misclassification risk
EPF, ESI and TDS	Registered, withheld and remitted for you	Your responsibility	Not applicable if truly independent
Gratuity	Accrued and paid on exit	Your responsibility	Not applicable, but a risk if reclassified
Best for	First hires, small teams, market testing	Large teams and a permanent presence	Genuine project work only

Treating someone as a contractor when the relationship looks like employment can lead to claims for provident fund, gratuity and other statutory benefits, along with penalties.

How it works

From signed agreement to first payroll

1

Agree on role and compensation

Define the job, the salary structure in rupees, the benefits package and the start date. We can advise on market rates.

2

Choose your candidate

You recruit through your own channels, and we step in once an offer is ready.

3

Issue a compliant contract

We draft a compliant appointment letter and employment terms that follow the rules of the state where the employee will work.

4

Register for statutory benefits

We register the new hire for EPF and, where the employee is eligible, ESI.

5

Set up payroll

The employee is added to our Indian payroll, including TDS on salary, with the pay cycle and bank details confirmed.

6

First payroll and ongoing compliance

We run payroll on schedule, remit EPF and ESI, deposit TDS, handle state professional tax where it applies and accrue gratuity. You get one consolidated monthly invoice.

Employer costs

What it costs to employ someone in India

An illustrative monthly cost for a hire on ₹60,000 gross salary. ESI is excluded because it only applies below a wage ceiling that this salary exceeds.

Component	Monthly (INR)	Basis
Gross monthly salary	60,000	Agreed salary
EPF (employer share)	7,200	12% of basic salary, assuming basic equals gross in this example
Gratuity accrual (monthly)	2,886	about 4.81% of basic, reserved each month
Professional tax	200	State-specific, a typical figure
Total employer cost (before EOR fee)	70,286	about 117% of gross

Illustrative only. Excludes the Asiacruit EOR fee, which is a flat monthly fee per employee quoted upfront and optional benefits. In practice the basic salary is often below gross pay, which changes the EPF and gratuity figures. Check the current rates and your state’s professional tax.

Employment law

Key rules every employer should know

EPF and ESI

EPF is 12% of basic wages plus DA from both employer and employee, mandatory up to the ₹15,000 wage ceiling. ESI is 3.25% employer and 0.75% employee for employees earning up to ₹21,000 a month.

Gratuity

Employees earn 15 days of wages for each completed year of service once they pass the qualifying period. Employers accrue it monthly and pay it on exit.

State-by-state rules

The Labour Codes set a national framework, but professional tax rates, shops and establishments registration and some filings still vary by state. A hire in Karnataka and a hire in Maharashtra can carry different obligations under the same national code.

Leave and benefits

Maternity leave is 26 weeks for the first two children. Other leave entitlements are set by state law and the employment contract.

Termination and notice

Notice periods are set by contract and state rules, commonly 30 to 90 days. Retrenchment rules and, for larger establishments, government approval requirements may apply.

Foreign workers

Foreign nationals need an employment visa before they start work. Plan well ahead of the start date.

Why Asiacruit

Indian hiring, handled by a team that owns the compliance

Our own registered entity in India, so no third-party handoff
ISO 27001:2022 certified for information security
Recognised as a Great Place to Work for 2025 to 2026
A dedicated account manager for every client
In-house legal and HR specialists, not a support queue

Talk to our team

Our team supports your hires here from our regional offices. Call us or book a consultation to talk through your plans.

+1 279 895-6524 · +1 279 895-6577

India hiring guides

Costs and pay

Contributions and compliance

Hiring in India

FAQ

Frequently asked questions

Do I need a Private Limited Company to hire in India?

No. Through an Employer of Record, Asiacruit is the legal employer and handles contracts, EPF and ESI registration, payroll, TDS and gratuity accrual. You manage the day-to-day work.

How long does onboarding take?

Most new hires are onboarded within 72 hours of submitting their details. The exact timeline depends on the country and the speed of document submission.

How much does an Employer of Record cost?

Our Employer of Record services start at $199 per employee per month, layered on top of the employee’s gross salary and statutory contributions. We confirm the final fee upfront with no hidden fees, so you know the full cost before you commit. Talk to our team for a quote.

What do employers contribute to EPF and ESI?

Employers contribute 12% of basic wages plus DA to EPF, mandatory up to the ₹15,000 wage ceiling, and 3.25% to ESI for employees earning up to ₹21,000 a month.

Do labor rules differ by state in India?

Yes. The national Labour Codes set the framework, but professional tax, shops and establishments registration and some filings still vary by state, so the state where your employee works matters.

Is an Employer of Record or a Private Limited Company better for my first hires?

For first hires and small teams an Employer of Record is usually faster and lower risk, because you avoid incorporation and ongoing company filings. A Private Limited Company tends to make sense once you have a larger, permanent team.

Ready to build your team in India?

Book a free consultation to get a clear quote and see how quickly your first hire could start.

Prefer to talk? +1 279 895-6524 · +1 279 895-6577

helpdesk@asiacruit.com

sales@asiacruit.com

+1 279 895-6524

+1 279 895-6577