What are the statutory contributions for employees and employers in India?
Employer Taxes
The employer tax in India is called the Employer’s Provident Fund (EPF), and it amounts to approximately 22-30% of the employee’s basic salary.
Employer & Employee Payroll Contributions
The contribution to the Employees’ Provident Fund (EPF) is divided between the employee and the employer. The current contribution rate for the EPF is 12% of the employee’s basic salary, to which the employee contributes 8.33% and the employer contributes 3.67%. For more information on the EPF rate, consult with this EPF India page.
What is the minimum wage in India?
The minimum wage in India is set by the government and varies depending on the skill level of the worker and the industry they work for. For example, the minimum wage for a white collar job is INR 10,000.
What is the payroll cycle in India?
The standard payroll cycle in India is monthly, with pay dates falling between the 25th to the 31st monthly. Other arrangements may be bi-monthly or bi-weekly pay, depending on company policies and individual agreements with employees.
How long is the working hours in India?
In India, employees are required to work at least 8-12 hours each working day. According to the new labor law, employees are entitled to three days off per week if they are required to work for more than 12 hours a day.
How many leaves are employees entitled to?
- Standard paid time off — employees in India are entitled to around 16-30 days of paid annual leave.
- Compulsory annual public holidays — there are 10-15 national public holidays in India depending on the state.
What are the public holidays in India?
India has 3 national holidays and various regional holidays. Here is the list of national holidays in India for 2023:
| Date | Name |
| 26 Jan | Republic Day |
| 15 Aug | Independence Day |
| 02 Oct | Mahatma Gandhi’s Birthday |
For the complete list of regional holiday, refer to this link.
How long is the maternity and paternity leave in India?
- Statutory maternity leave — female employees in India are entitled to 26 weeks of paid maternity leave
- Statutory paternity leave — male employees in India are entitled to 15 days of paternity leave.
What rights do employees have upon leaving employment due to certain conditions?
Employees and employers are required to adhere to a notice period which varies depending on the terms of the employment contract, but generally falls under 30-90 days.
In some cases, immediate termination by mutual agreement between the employee and the employer is possible.
What is the type of visa for employees in India?
The most common type of visa for employees in India is the Employment visa or E-visa. This type of visa is required for employees who are coming to India for employment purposes and allows them to stay and work in the country for the duration of their employment.
Standard VAT Rate
The standard VAT rate in India varies from 5% to 28%.