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Overview
Indian Rupee (INR)
CURRENCY
New Delhi
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 16.75%
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in India
Employer
Company Payroll Contributions
0% - 12%
Employee Pension Scheme (EPS) and Employee’s Provident Fund (EPF) (EPS). Mandatory for businesses with more than 20 workers and a monthly pay cap of 15,000 Indian rupees
0% - 4.75%
Employee State Insurance (ESI). Obligatory for workers with more than 10 workers
0% - 16.75%
Total Employment Cost
Employee
Company Payroll Contributions
0%- 12.00%
Employee Pension Scheme (EPS) and Employee Provident Fund (EPF) (EPS). Mandatory for businesses with more than 20 workers and a monthly pay cap of 15,000 Indian rupees
0%- 1.75%
Employee State Insurance
0%- 4.00%
A health and education tax (levied at a rate of 4.00% on the sum of income tax + surcharge) is also obligatory.
0% - 17.75%
Total Employee Cost
Employee Income Tax in India
Worker Income Tax
0.00%
0 INR – 2,50,000.00 INR
5.00%
2,50,000.00 INR – 5,00,000 INR
10.00%
5,00,001 INR – 7,50,000 INR
15.00%
7,50,001 INR – 10,00,000 INR
20.00%
10,00,001 INR – 12,50,000 INR
25.00%
12,50,001 INR – 15,00,000 INR
30.00%
More than 15,00,001 INR
Payroll Contributions in India
Payroll Cycle
In India, the payroll cycle is typically monthly, with wages in place on or after the 28th of every month. Payroll outsourcing for Indian companies can be of great help for businesses that have a big workforce.
13th Salary
In India, the 13th salary is usually mandatory and is compensated as a fraction of the annual salary within 8 months of the completion of the fiscal year. A Professional Employer Organization or an Employer of Record in India can help companies with their payroll outsourcing services.
Employee Benefit in India
Employees benefits include, meals, a wellness allowance, and a work from home allowance.
Visa and work permit in India
In India, there are primarily two sorts of visas: business visas (which allow for stays of up to six months in India for the purpose of conducting business for a non-Indian firm) and employment visas. For foreigners traveling to India for employment, a visa is needed. The maximum duration of this visa type is five years.
However, if the contract of employment is longer than that, an extension must be in place prior to the expiration of the visa. Additionally, this visa provides the opportunity for longer-term residence and employment in India. Visa requests must be submitted in the applicant's home country.
In India, there are primarily two sorts of visas: business visas (which allow for stays of up to six months in India for the purpose of conducting business for a non-Indian firm) and employment visas. For foreigners traveling to India for employment, a visa is needed. The maximum duration of this visa type is five years.
VAT in India
In India, the usual VAT rates are 18.00% and 12.00%, while the low rate is 5.00%. To keep tax compliancy, an Employer of Record in India is the best alternative.
Working Hours in India
General
The basic workweek is 48 hours long, with nine hours per day. To abide by this guideline according to the Labour Law, companies can hire an EOR in India.
Overtime
Overtime is paid for all hours worked in excess of the regular 48 hours per week and is governed by employment contracts, which are typically calculated at 200% of the usual pay rate. When companies hire employees in India to work overtime, they must acquire PEO services in India to keep track of their payments.
Working Week
From Monday to Saturday.
Employee Termination in India
Termination Process
In India, the process of terminating an employee is conventional, and notice periods are necessary unless an employer can show that there is good reason to terminate an employee immediately owing to misconduct, disobedience, a lack of skill, disregard of tasks, or absence without authorization.
Notice Period
Severance compensation in India is determined by a number of elements, including as the provisions of the contract of employment, the employee's position and responsibilities, and the cause for termination.
Severance Pay
Severance compensation in India is determined by a number of elements, including as the provisions of the contract of employment, the employee's position and responsibilities, and the cause for termination.
Probation Period
According on the employee's seniority and role, Indian probation periods typically range from three to six months
Employee Leaves in India
Paid Time Offs
The employment contract in India stipulates that employees must receive at least 15 days of paid vacation every year. Once the 240 days of service are up. However, it is customary to incorporate additional leave days and restrictions on how many can be transferred to the next year in the contract. To maintain productivity, all requests for paid time off must be submitted at least 15 days before they are needed and authorized by the manager, works committee, and employer.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
Workers who have been with the company for at least three months are eligible to 15 days of sick leave pay every year and must submit a health certificate in under 48 hours of the initial day of sickness. The sick pay rate is set at 70% of the normal daily salary rate.
Paternity Leave
For their first 2 kids, eligible expecting mothers are eligible to 100% of their normal income rate for 26 weeks; this benefit is reduced to 12 weeks for any further children. The worker must have been in the company for the employer for a minimum of 80 days in the 12 months prior to the anticipated due date in order to be eligible. To maintain these employee benefits in place, firms can partner with an Employer of Record in India.
Paternal Leave
There are no mandatory parental leave laws.
Other Leave
Parental Leave There are no mandatory parental leave laws. Other Leave Other leave benefits and policies go according to each state.
Maternity Leave in India
For their first 2 kids, eligible expecting mothers are eligible to 100% of their normal income rate for 26 weeks; this benefit is reduced to 12 weeks for any further children. The worker must have been in the company for the employer for a minimum of 80 days in the 12 months prior to the anticipated due date in order to be eligible. To maintain these employee benefits in place, firms can partner with an Employer of Record in India.
There are 80 leave throughout the year.