Table of Contents
Introduction
Key Considerations for Employing in India
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in India requires a clear understanding of state-specific laws, registration procedures, and statutory entitlements. Omnipresent’s Employer of Record (EOR) service simplifies onboarding, payroll, and compliance for your remote team.
2. Key Considerations for Employing in India
Currency: Indian Rupee (₹, INR)
Languages: Hindi, Marathi, Telugu, Tamil, Bengali (22 national languages)
Employer Costs: Average (~13% of salary)
Termination Complexity: Hard
Onboarding Timeline: ~13 calendar days
Payroll Frequency: Monthly
3. Benefits
What We Offer
Mandatory:
Retirement & pension (EPF)
Life Insurance
Accident Insurance
Supplementary:
Health Insurance (including Dental, Vision, and dependent cover)
Wellbeing initiatives
Healthcare
India lacks a robust public healthcare system, making employer-funded supplementary health insurance common.
Retirement
Employee Provident Fund (EPF): Mandatory employer/employee contributions via payroll
Termination indemnities may apply upon retirement
4. Employment Contracts
Contract Types
Indefinite-term contracts only
Fixed-term contracts not offered via Omnipresent
Requirements
Written contracts are standard practice (mandatory in some states)
Language: English
Signature: Digital signatures accepted
Backdating: Not permitted
Contract Customisation
Customisable: Unlimited PTO, extra-legal sick days
Non-customisable: Overtime, restrictive covenants, stylistic formatting
Probation Period
Typically 3–6 months (no statutory limit, but must be reasonable)
Probation is always included unless employment is a transfer
5. Onboarding
Timeline
~13 calendar days, excluding visa or background check delays
Includes:
Platform setup
Right-to-work check
Employment contract
Benefits & payroll enrollment
Registration & Approvals
Vary by state. Contact support for details.
Immigration & Visas
Visa support available for highly skilled workers
Visas typically granted for 1 year and renewable
Right-to-Work
Not legally required for Indian citizens (except in BFSI sectors)
Foreign nationals must have proper visa
Employee Transfers
Seniority can be recognized if employee previously worked for client or another EOR
6. Leaves
Annual Leave
15–20 days/year, depending on state
Accruable to a capped limit
Omnipresent can offer unlimited PTO, but statutory minimums must be enforced
Maternity Leave
26 weeks for up to two children
12 weeks for more than two children
6 additional weeks for complications, miscarriage, or medical termination
Paid at 100% of salary by employer
Paternity Leave
Not required by law, but 15 days is common practice
Sick Leave
10–15 days/year, varies by state
Employer-paid
Special & Casual Leave
Used for personal emergencies (e.g., illness in the family)
Public Holidays
Vary by state: OfficeHolidays India
7. Payroll & Taxes
Payroll Cycle
Monthly
Cut-off: 6th of the month
Payment: Last working day
Extra Payments
Statutory Bonus:
Mandatory for employees earning <INR 21,000/month
Bonus = 8.33%–20% of wages
Diwali or discretionary bonuses are customary
Hourly Wage
Not accepted via Omnipresent
Minimum Wage
Set by state; no federal minimum wage currently
Standard Work Schedule
8–9 hours/day, 40–45 hours/week
Flexible schedules permitted
Employer Costs
Estimated at ~13% of salary
Use the OmniCalculator for estimates
8. Termination Process
Involuntary Termination
Allowed without cause only for non-workman roles or probationary employees
“Workman” status depends on job duties and salary (<INR 10,000/month typical threshold)
Omnipresent must be consulted before any termination
Severance Pay
Gratuity due after 5 years of continuous service
Exception: paid upon death or disability regardless of tenure
Must pay on top of salary; not deductible
Other termination pay includes:
Accrued leave
Bonus (if eligible)
Payment in lieu of notice
Contractual dues
No severance required for misconduct terminations
Notice Period
1 month standard, varies by state and job role
No notice required for probation <6 months
9. Invoice Schedule
Initial Fees
Setup Fees: Triggered upon signing
Deposit: Triggered when contract is ready
Initial Salary Prepayment: Invoiced on employee start date
Ongoing Monthly Costs
Invoiced monthly in arrears after payroll finalization
Includes:
Service fee
Insurance (if applicable)
FX fees (if applicable)
10. Get Started with Omnipresent
We make it easy to hire in India through expert-led onboarding, HR support, legal compliance, and localized payroll. Let us manage the complexities so you can scale confidently.