Basics

Currency: Indian Rupee (INR) (Rate)

Public Holidays: Up to 19 holidays depending on the state (see here)

Employer taxes: 12.05%

Official Language: English

Payroll frequency: Monthly

Official website: https://labour.gov.in/

3 things to know about employing in India

  1. Employees living in self-arranged rented accommodation can claim a house rent allowance (HRA) as a salary tax deduction; other deductions from income include contributions made to the provident fund, payment of life insurance premiums and transport allowances.
  2. Employees leaving their jobs are entitled to a "gratuity payment" from their employers if they have been working for more than five years. This is equal to 15 days' wages for every completed year of service, subject to a cap. Statutory gratuity is usually always payable, unless the employee is terminated for misconduct or gross negligence.
  3. Post-employment non-compete clauses are legally unenforceable in India.

Employment in India

Paid Holidays

Holiday entitlement is generally covered by the employment contract. This can range from 12 to 21 days in a year, varying by industry and state.

In addition, employees can also be given c. 10-15 days of "casual leave" for unplanned and urgent matters.

Sick pay and time off

Sick leave entitlement varies by industry, and can be 10-12 days in a year. Some employers provide unpaid leave for long term medical issues, but this is not mandatory.


Minimum Wage For Contractors

Minimum wages differ according to state and skills of the worker.

Probation period

Between three and six months

Non-compete agreements

Post-employment non-compete clauses are legally unenforceable in India.

Working Hours

Eight or nine hours per day; 48 hours a week

Overtime