Employer of Record India (EOR India)

Our Employer of Record India service enables clients to hire employees without the need to operate a local legal entity there.

About EOR India

India, the world’s second-most populated country, provides access to a market of over 1.3 billion people. The country also benefits from a strategic location, which has placed it at the crossroads of global trade routes for millennia. As a result, India is a prime destination for companies looking to grow their operations in the Asia-Pacific region at a low cost.

FMC Group’s EOR India service enables firms to explore their potential in the enormous Indian market without having to establish a local company and dealing with complex local laws. By offering comprehensive employer of record services, FMC Group simplifies the hiring process and ensures compliance with local labor laws and regulations. This provides clients with enormous flexibility, allowing them to increase or decrease their investment along their development potential. It also assists firms in drastically reducing the time and financial costs associated with growing into India.

Get in Touch with Us

Stephan Dorn

Managing Partner

Advantages Employer of Record India

EOR India enables companies to quickly and affordably extend their operations into the vast Indian consumer market. By expanding into India through EOR, companies gain control of a highly skilled local team that is well-acquainted with the Indian business environment and the numerous opportunities it offers.
Through tailored job advertisements and a stringent hiring process, our service helps companies attract the best candidates from India’s large talent pool. Additionally, the EOR simplifies the entire hiring and compliance process, ensuring full adherence to local labor laws and regulations.
By acting as the legal employer, the EOR assumes responsibility for compliance with Indian labor laws, reducing the risks of legal complications for the foreign company. The EOR also eliminates the need to establish a local entity, resulting in significant cost savings and providing flexibility to scale operations up or down as needed.
Partnering with an EOR allows foreign employers to focus on growing their business while the EOR handles all employment-related tasks, ensuring smooth operations and legal compliance in India.

Employer of Record India - FMC Group's Approach

We offer:
Quick, flexible, and easy entry into India in compliance with local employment laws
Complete control over business development with your own team
Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
Allowing for easy market exit if necessary
Integrating your employees into our team through motivational events and special meetings

EOR India Management & Reporting Flow

Advantages of the Indian Market

India’s economy is one of the world’s fastest growing. The country received more than USD 83.5 billion in FDI inflows during the fiscal year 2020-2021. The Indian economy is also expected to continue its rapid growth in the coming years. According to the Indian Ministry of Finance, India’s GDP is expected to grow at 9.0% in 2021-2022 and 2022-2023, and 7.1% in 2023-2024, making it the world’s fastest-growing major economy.
India has the world’s largest youth population, with nearly 380 million people aged 10 to 24 years. This demonstrates that the Indian labor force and consumer market will continue to grow in size for the foreseeable future, providing enormous opportunities for businesses.
Indian infrastructure is rapidly developing as a result of a national infrastructure investment program aimed at providing world-class infrastructure throughout the country by 2025. With a total budget of more than INR 1,000 billion, the program includes nearly 7,000 projects in the energy, road, and railway sectors (EUR 12.5 billion).
India serves as a global hub for maritime trade between the Pacific and Indian Oceans. The International North-South Transport Corridor (INSTC), a 7,200-kilometer-long multi-mode transportation network connecting Mumbai, India, and Moscow, Russia, also connects the country to Central Asia and Europe. Because of its importance as a trade hub, India wields considerable economic power throughout the Asia-Pacific region.
Because of the size of its young talent pool and large investments in education and infrastructure, India has great potential for innovation. The country ranked first in Central and Southern Asia, third in the Lower Middle-Income Economy Group, and 46th overall in the 2021 Global Innovation Index.
Hiring Indian employees can significantly benefit businesses by ensuring compliance with local labor laws and mandatory benefits. Utilizing Employer of Record (EOR) services can streamline the hiring process, making it easier to integrate new hires into the company culture and contribute to the local business environment.
India Investment Grid is a comprehensive living repository showcasing a diverse range of investment opportunities in India.
The India National Investment Promotion and Facilitation Agency is another useful entity to investigate as an investment destination.

Hiring an Employee

Hiring in India requires understanding local labor laws, administrative procedures, and workplace culture. Employers must comply with regulations on wages, contracts, working hours, social security, and termination. Foreign hires need employment visas and FRRO registration. Respecting cultural norms and communication styles supports team integration. Legal compliance and cultural awareness are key to a smooth hiring process in India.

Minimum Wage and Payroll

When companies look to hire employees in India, they often consider various methods and strategies for engaging talent. Utilizing Employers of Record (EOR) can simplify the hiring process, manage compliance, payroll, and legal obligations, while offering cost-effective access to skilled labor.
In India, there is no national minimum wage. The minimum wage is set by state governments in each region and is calculated using a formula that takes into account the employee’s geographical location, type of employment, industry, skill level, and seniority.
Salaries are usually paid on the 28th of each month.
In the majority of Indian states, the 13th-month salary is required. It is usually paid prior to the end of the fiscal year (March 31st).

Notice Period

In India, the minimum notice period is 30 days.

Work Week, Overtime & Maximum Working Hours

Income Tax

Employer Contributions
Employee’s Provident Fund (EPF) and Employee’s Pension Scheme (EPS)	12.00%
Employee’s State Insurance (ESI)	4.75%
Total	16.75%
Employee Contributions
Employee’s Provident Fund (EPF) and Employee’s Pension Scheme (EPS)	12.00%
Employee’s State Insurance (ESI)	1.75%
Total	13.75%
Employee Income Tax
Less than INR 250,000 (EUR 3,127) per year	0.00%
Between INR 250,001 and INR 500,000 (EUR 3,127 – EUR 6,252)	5.00%
Between INR 500,001 and INR 750,000 (EUR 6,252 – EUR 9,377)	10.00%
Between INR 750,001 and INR 1,000,000 (EUR 9,377 – EUR 12,503)	15.00%
Between INR 1,000,001 and INR 1,250,000 (EUR 12,503 – EUR 15,632)	20.00%
Between INR 1,250,001 and INR 1,500,000 (EUR 15,632 – EUR 18,759)	25.00%
Over INR 1,500,000 (EUR 18,759)	30.00%

Time off Policies

Public Holidays

There are only three public holidays encountered in all Indian states:
Republic Day: January 26th;
Independence Day: August 15th;
Gandhi Jayanti: October 2nd.
State-specific holidays include religious holidays for Hindus, Muslims, Sikhs, Christians, and Buddhists.

Annual Leave

Other Leave Types

Female employees in India are entitled to 26 weeks of fully paid maternity leave following the birth of their first two children. After two births, the leave is reduced to 12 weeks. Social security covers the salary.
Male employees in the public sector are entitled to 15 days of paid leave following the birth of their child, but there are no statutory paternity leaves in the private sector.
In India, employees are entitled to 15 days of paid sick leave per year. Sick pay is calculated at 70% of regular salary and is paid for by the employer.