India EOR Solutions
If you’re looking to hire employees in India for your business, AYP Group can help make the process easy. Our India EOR service handles HR, benefits, payroll, and tax needs, allowing you to quickly hire employees and test out new markets in India. Our EOR solutions enable you to build your team without the legal and financial responsibilities of setting up a separate entity or worrying about contractor risks. Let us handle the details while you focus on your business goals. Contact us today to get started!
Country Overview
With a population of more than 1.4 billion, India is a sovereign state in South Asia. Being the second most populated country in the world and the seventh-largest nation by land area, India has a mixed economy that combines government control and private enterprise. India’s economy comprises of different sectors. This includes manufacturing, IT, and agricultural industries. it is a significant player in the global economy.
Capital City
New Delhi
Currency
Indian Rupee (INR)
Principal Language
Hindi
Government
Federal Parliamentary Republic
Employment contracts
Written contracts are not required by law in India, but they are commonly used to protect workers and employers and limit legal action. Fixed-term contracts, on the other hand, must be in writing.
Typical employment contracts in India include:
Performance evaluations
Deductions
Pension grievance and disciplinary procedures, among other things
The following are the various types of employment relationships:
Permanent Employment – According to India’s Industrial Relations Code (IRC) 2020, permanent employment has no fixed termination date. Statutory benefits include paid annual leave, sick leave, mandatory health insurance, gratuity pay, and a provident fund.
Contracts with a set term – Fixed-term contracts are typically for a set period of time under a written agreement, with a maximum term of seven years.
Temporary Employment – In accordance with the Model Standing Orders for Service
Working Hours
Maximum 8 hours a day not exceeding 48 hours a week
Public holidays
In accordance with the law, these are some of the national holidays in India.
- New Year’s Day: January 1st
- Republic Day: January 26th
- Independence Day: August 15th
- Gandhi Jayanti: October 2nd
- Christmas Day: December 25th
- Good Friday: March or April (dates vary each year)
- Easter Monday: March or April (dates vary each year)
- International Workers’ Day: May 1st
- Eid al-Fitr: May or June (dates vary each year)
- Independence Day: July 4th
- Eid al-Adha: July or August (dates vary each year)
- Dussehra: October (dates vary each year)
- Diwali: October or November (dates vary each year)
- Muharram: October or November (dates vary each year)
- Guru Nanak Jayanti: November (dates vary each year)
- Christmas Eve: December 24th
- The day following Christmas Day: December 27th
- New Year’s Eve: December 31st
- The day following New Year’s Day: January 2nd
- The day following Republic Day: January 27th
- Maha Shivaratri: February or March (dates vary each year)
- Holi: March (dates vary each year)
- Mahavir Jayanti: March or April (dates vary each year)
- Vaisakhi: April (dates vary each year)
- Guru Purnima: July (dates vary each year)
- Janmashtami: August (dates vary each year)
Benefits contribution
- Social security: Employers are required to contribute to the Employees’ Provident Fund (EPF), which is administered by the Employees’ Provident Fund Organization (EPFO). This fund provides retirement benefits for employees and is funded by contributions from both the employer and the employee. The contribution rate is typically 12% of the employee’s salary.
- Health insurance: Employers are required to provide health insurance for their employees through the Employees’ State Insurance Corporation (ESIC). The contribution rate for health insurance is typically shared equally between the employer and the employee.
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