Know your true hiring cost before your first hire.
Your estimate is ready
See the full breakdown on our calculator View full resultsTry our Salary Calculator
Know your true hiring cost before your first hire.
Your estimate is ready
See the full breakdown on our calculator View full resultsTry our Salary Calculator
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.
Employer EPF contribution
of basic wages plus DA
Employer ESI contribution
for eligible employees
Gratuity per year of service
of wages, after the qualifying period
Typical onboarding
from submitted details
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.
A large pool of engineers, developers, analysts and finance professionals.
English is widely used in professional work, which reduces onboarding friction.
India Standard Time (UTC+5:30) overlaps well with Europe, the Middle East and Asia-Pacific.
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
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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
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Levied by some states only, with rates that differ by state
|
|
Maternity leave
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26 weeks for the first two children (Maternity Benefit Act)
|
|
Paternity leave
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No statutory paternity leave for private-sector employees, though many employers offer it
|
|
Notice period
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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
|
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.
Define the job, the salary structure in rupees, the benefits package and the start date. We can advise on market rates.
You recruit through your own channels, and we step in once an offer is ready.
We draft a compliant appointment letter and employment terms that follow the rules of the state where the employee will work.
We register the new hire for EPF and, where the employee is eligible, ESI.
The employee is added to our Indian payroll, including TDS on salary, with the pay cycle and bank details confirmed.
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.
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.
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.
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.
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.
Maternity leave is 26 weeks for the first two children. Other leave entitlements are set by state law and the employment contract.
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 nationals need an employment visa before they start work. Plan well ahead of the start date.
Our team supports your hires here from our regional offices. Call us or book a consultation to talk through your plans.
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.
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.
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.
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.
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.
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.
Book a free consultation to get a clear quote and see how quickly your first hire could start.
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