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Talent Wiki – India

Your quick guide on talent and labor compliance norms in India

Capital

New Delhi

Currency

Indian Rupees (INR)

Languages

Hindi, English

Payroll Frequency

Monthly

GDP per Capita

$2,802.53

Employer Tax

15.25%

Talent Overview

India’s developing economy has led to the country’s success in the global market. They are projected to be one of the world’s most significant economic powers due to their successful partnerships and investments. Since the 2000s, their upward economic trajectory has lifted more than 90 million citizens from poverty and has provided jobs for the working population.

Major economic hubs:

New Delhi, Mumbai, Calcutta, Chennai

Skills in demand:

AI, Networking Development, Algorithm designer, Cloud computing, UI designer, Coding and software skills

Local Universities

The top local universities in India are as follows:

Indian Institute of Technology Bombay

Ranking:

Local: 1

World: 519

Indian Institute of Technology Kanpur

Ranking:

Local: 2

World: 526

University of Delhi

Ranking:

Local: 3

World: 871

Indian Institute of Technology Madras

Ranking:

Local: 4

World: 897

Indian Institute of Technology Delhi

Ranking:

Local: 5

World: 945

Salary Data

Some top jobs found in India and their monthly salary are listed below:

Job Title Average Monthly Salary (INR) Average Monthly Salary (USD)
Financial Manager 62,700 INR 765 USD
General Manager 55,400 INR 676 USD
Business Development Manager 49,900 INR 609 USD
Business Analyst 39,400 INR 481 USD
Financial Analyst 40,400 INR 493 USD
Project Manager 35,600 INR 434 USD

Talent Sourcing Tips

Top Local Job Boards:

Naukri, Indeed, FreshersLive, monsterindia.com , shine.com, workindia

Number of LinkedIn users:

109,200,000

Multiplier Recruitment Partner:

Uplers 

Employing in India

India is filled with world class employees and highly skilled professionals. But before tapping into the country’s talent pool, employers must first navigate their way through the employment laws and regulations. The succeeding sections should help you with the basics when onboarding workers from India.

Employee Contract

In India, employee contracts must be in a language understood by both contracting parties. Contracts are generally in English, provided that both parties understand it.

Probation Period

The Probation Period for Indian employees can last up to 6 months.

Public and Provincial Holidays 2024

India has 3 national holidays. Apart from that, the country also follows some government holidays as listed below, some of which may vary depending on the location.

Date Name Type
1 Jan New Year’s Day Restricted Holiday
13 Jan Lohri Restricted Holiday
14 Jan Makar Sankranti Restricted Holiday
15 Jan Pongal Restricted Holiday
17 Jan Guru Govind Singh Jayanti Restricted Holiday
25 Jan Hazarat Ali’s Birthday Restricted Holiday
26 Jan Republic Day Gazetted Holiday
14 Feb Vasant Panchami Restricted Holiday
19 Feb Shivaji Jayanti Restricted Holiday
24 Feb Guru Ravidas Jayanti Restricted Holiday
6 Mar Maharishi Dayanand Saraswati Jayanti Restricted Holiday
8 Mar Maha Shivaratri/Shivaratri Restricted Holiday
24 Mar Holika Dahana Restricted Holiday
25 Mar Holi Gazetted Holiday
25 Mar Dolyatra Restricted Holiday
29 Mar Good Friday Gazetted Holiday
31 Mar Easter Day Restricted Holiday
5 Apr Jamat Ul-Vida (Tentative Date) Restricted Holiday
9 Apr Chaitra Sukhladi Restricted Holiday
9 Apr Ugadi/Gudi Padwa Restricted Holiday
11 Apr Ramzan Id/Eid-ul-Fitar (Tentative Date) Gazetted Holiday
13 Apr Vaisakhi Restricted Holiday
14 Apr Mesadi / Vaisakhadi Restricted Holiday
17 Apr Rama Navami Gazetted Holiday
21 Apr Mahavir Jayanti Gazetted Holiday
8 May Birthday of Rabindranath Restricted Holiday
23 May Buddha Purnima/Vesak Gazetted Holiday
17 Jun Bakrid/Eid ul-Adha (Tentative Date) Gazetted Holiday
7 Jul Rath Yatra Restricted Holiday
17 Jul Muharram/Ashura (Tentative Date) Gazetted Holiday
15 Aug Independence Day Gazetted Holiday
15 Aug Parsi New Year Restricted Holiday
19 Aug Raksha Bandhan (Rakhi) Restricted Holiday
26 Aug Janmashtami Gazetted Holiday
7 Sep Ganesh Chaturthi/Vinayaka Chaturthi Restricted Holiday
15 Sep Onam Restricted Holiday
16 Sep Milad un-Nabi/Id-e-Milad (Tentative Date) Gazetted Holiday
2 Oct Mahatma Gandhi Jayanti Gazetted Holiday
10 Oct Maha Saptami Restricted Holiday
11 Oct Maha Navami Restricted Holiday
11 Oct Maha Ashtami Restricted Holiday
12 Oct Dussehra Gazetted Holiday
17 Oct Maharishi Valmiki Jayanti Restricted Holiday
20 Oct Karaka Chaturthi (Karva Chauth) Restricted Holiday
31 Oct Naraka Chaturdasi Restricted Holiday
31 Oct Diwali/Deepavali Gazetted Holiday
2 Nov Govardhan Puja Restricted Holiday
3 Nov Bhai Duj Restricted Holiday
7 Nov Chhat Puja (Pratihar Sashthi/Surya Sashthi) Restricted Holiday
15 Nov Guru Nanak Jayanti Gazetted Holiday
24 Nov Guru Tegh Bahadur’s Martyrdom Day Restricted Holiday
24 Dec Christmas Eve Restricted Holiday
25 Dec Christmas Gazetted Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 18 days Yes
Sick Leave 12 days Yes
Maternity Leave 26 weeks Yes

Payroll

Payroll Cycle

The payroll cycle in India is monthly. 

Minimum Wage

Minimum wage in India varies per state and with industry associated. However, the national floor level minimum wage across the country is 178 INR per day.

Overtime Pay

The standard working hours in India are 9 hours per day and 48 hours per week. Including overtime, the maximum working hours must not exceed 60. Furthermore, the overtime hours per quarter must not exceed 50. Employers must compensate for the overtime at 200% of the regular hourly rate.

Bonus

Employee Benefits

The Indian government has set statutory benefits for their employees to ensure that they get the best out of their employment. Below are some of the benefits:

  • Employee Provident Fund (EPF)
  • Employee Pension Scheme (EPS)
  • Employee State Insurance (ESI)
  • Maternity leave

Taxes

Employer Payroll Tax

Type of contribution Contribution
EPF + EPS 12%
ESI 3.25%
Total cost on employer 15.25%

Employee Payroll Tax

Type of contribution Contribution
EPF 12%
ESI 0.75%
Total cost on Employee 12.75%

Employee Income Tax

Income tax slab Old Regime New Regime
Individuals,  HUF & NRIs under 60 years Individuals & HUF between 60 to 80 years old Individuals & HUF above 80 years old All individuals & HUF
Up to INR 2,50,000 0% 0% 0% 0%
INR 2,50,001 – INR 3,00,000 5% 0% 5% 5%
INR 3,00,001 – INR 5,00,000 5% 0%
INR 5,00,001 – INR 7,50,000 20% 20% 20% 10%
INR 7,50,001 – INR 10,00,000 20% 20% 20% 15%
INR 10,00,001 – INR 12,50,000 30% 30% 30% 20%
INR 12,50,001 – INR 15,00,000 30% 30% 30% 25%
Above INR 15,00,000 30% 30% 30% 30%

Health and education cess is levied at 4% of the income tax and surcharge.

VAT

VAT in India is referred to as the Goods and Services Tax (GST). Rates range from 5% to 28%, depending on the goods and services.

Offboarding & Termination

In India, the termination process may vary from one employer to another and mostly follows the terms indicated in the employment contract. 

The notice period for employees under probation is up to 30 days. For regular employees, notice period will be up to 3 months. 

Severance Pay in India varies ​​based on duration of employment, performance and salary. Below are the rates:

Employee Classification Severance Pay
Workman 15 days’ worth of average pay for each year worked
Workman of a factory, mine or plantation with 100+ workers 15 days’ worth of average pay for each year worked
Non-worker Determined by the employment contract
Employee (workman or non-worker) that is dismissed due to misconduct No severance pay

Visa and Immigration

Foreign employees in India must secure a work visa to legally work in the country. The visa’s validity may vary from 6 months to 5 years. For investors looking into operating their business in the country, they must apply for a business visa. 

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration