Hire, Pay & Manage Employees in India

How to hire, pay & manage your employees in India?[toc=Introduction]

Are you a global employer looking to hire talent in India? We know it can be challenging, especially if you’re unfamiliar with Indian employment laws, taxes, or hiring practices. But don’t worry—this guide is here to help. Over the years, we’ve helped businesses from around the world expand their teams in India, and we’ve learned exactly what foreign employers need to know.

In this article, we’ll walk you through every aspect of hiring in India—from navigating employment laws and tax regulations to understanding how to onboard, pay, and manage employees India effectively. Whether you’re hiring for the first time or scaling your team in India, this guide will simplify the hiring process in India and help you make informed decisions.

Hiring options in India: What are your Choices?[toc=Hiring Options]

Before diving into the details of employment laws or onboarding processes in India, you need to make an important decision: How will you hire employees in India?

You have two main options:

1. Set up your own legal entity in India
2. Partner with an Employer of Record (EOR)

Let’s explore both options so you can decide which one works best for your business.

Option 1: Setting Up a Legal Entity in India

Setting up a legal entity is like building a permanent base for your business in India. It’s ideal if you’re planning long-term operations or hiring a large workforce. This option gives you full control over your team, payroll, and compliance with local laws—but it’s not something that happens overnight.

Here’s what’s involved: You’ll need to register your company with Indian authorities, open a local bank account, and follow tax and labor laws. This includes providing statutory benefits like provident fund contributions and health insurance for employees. While this process takes time and effort, it allows you to directly manage your operations and employees.

Option 2: Partnering with an Employer of Record (EOR)

If speed and simplicity are what you’re looking for, partnering with an Employer of Record (EOR) might be the better choice. An EOR is a third-party company that acts as the legal employer for your team in India while you focus on growing your business.

Here’s how it works: The EOR takes care of everything—employment contracts, payroll processing, taxes, compliance with labor laws, and even onboarding new hires. This option is perfect if you want to test the market or hire a small team without committing to setting up a legal entity.

Ultimately, the choice depends on the company's resources, timeline, and risk tolerance. Click here to learn more: Detailed Comparison of Entity Establishment vs. Employer of Record (EOR).

How do you classify Indian workers: Employees or Contractors?[toc=Employees vs. Contractors]

Once you’ve decided how you want to hire—whether by setting up an entity or partnering with an EOR—the next step is understanding how to classify workers correctly as either employees or independent contractors. Based on our experience managing teams across India, we can confirm that misclassifying workers can lead to serious penalties under Indian labor laws—and no employer wants that!

Let’s break down both classifications so you can make informed decisions.

• Employees in India: Employees work under formal contracts and are entitled to statutory benefits like paid leave, provident fund contributions, health insurance, and maternity leave. Employers have significant control over their schedules, tasks, and work methods. They are part of your company—they work exclusively for you, follow your policies, and receive regular salaries or wages.
• Independent Contractors in India: Contractors are self-employed individuals who provide services under specific agreements for projects or short-term engagements. They don’t receive employee benefits but have more freedom in how they work. They decide how they complete their tasks and often use their own tools or resources. Contractors are ideal for short-term projects requiring specialized skills without committing to long-term employment.

How to send job offer & employment letters to employees in India?[toc=Offer Letters]

Once you’ve found the right candidate for your role in India, the next step is formalizing the hire by sending a job offer letter and an employment letter. These documents are essential for setting clear expectations and ensuring compliance with Indian labor laws.

Having helped global employers like you hire and onboard talent in India, we’ve streamlined this process to make it simple and efficient. Let’s walk you through how we handle it as your Employer of Record (EOR).

Think of these two documents as steps in the hiring process:

• Job Offer Letter: This is the first document sent to your candidate. It outlines key details like job title, salary (CTC), benefits, and start date. It’s not legally binding but serves as a formal offer of employment.
• Employment Letter: Once the candidate accepts the offer, this legally binding document is issued. It includes detailed terms of employment, such as compliance clauses, termination policies, and confidentiality agreements.

How we simplify this process for you?

When you partner with us as your EOR, we take care of everything—from drafting compliant documents to ensuring they align with Indian employment laws. Here’s how it works:

1. You Send the Initial Offer Letter: You send a personalized job offer letter to your selected candidate.
2. We Issue the Employment Letter: Once they accept, we prepare a localized employment letter that complies with Indian regulations.
3. Candidate Signs Both Documents: The candidate reviews and signs both documents digitally for convenience.
4. ‍Onboarding Begins: After all documents are signed, we initiate the onboarding process seamlessly.

Wisemonk assists clients in drafting legally compliant offer letters that are in line with Indian labor laws and best practices. to reflect any changes in regulations or industry standards.

What are the key elements of a job offer letter in India?

To ensure clarity and professionalism, include these elements in your job offer letter:

1. Job Title & Role Description: Clearly state the position and key responsibilities.
2. Compensation Details: Mention annual CTC (Cost to Company) and provide a salary breakdown if possible.
3. Benefits & Perks: Highlight health insurance, leave policies, bonuses, or other perks.
4. Start Date & Location: Specify when and where the employee will begin work.
5. Acceptance Instructions: Provide clear steps for signing and returning the letter.

Having helped numerous global employers send job offers and employment letters in India, we can confidently say that clarity and compliance are key. A well-drafted offer sets clear expectations for both parties while ensuring legal protection for your business.

How do you create an employment contract for employees in India?[toc=Employment Contracts]

Creating an employment contract in India is essential to ensure clarity, protect your company’s interests, and comply with local labor laws. Don’t worry—it’s simpler than it sounds. Let’s break down the key elements you need to include in a clear and concise way.

• Job Title and Responsibilities: Clearly define the employee’s role, duties, and expected outcomes. Include a clause allowing reasonable changes to responsibilities based on business needs.
• Compensation and Benefits: Outline the salary structure, including base pay, allowances, and bonuses. Specify how and when salaries will be paid (e.g., monthly via bank transfer). Mention benefits like health insurance or provident fund contributions.
• Working Hours and Leave Policies: State standard working hours, overtime provisions, and leave entitlements (e.g., annual leave, sick leave, maternity/paternity leave). Include public holidays and compensatory off policies if applicable.
• Confidentiality and Non-Compete Clauses: Add clauses to protect your company’s confidential information. Ensure non-compete terms are reasonable in scope and duration to comply with Indian law.
• Termination Conditions: Specify notice periods for both employer and employee. Include terms for termination due to misconduct or poor performance, along with severance pay details if applicable.

Types of Employment Contracts in India

• Permanent Contracts: For long-term roles with full benefits.
• Fixed-Term Contracts: For project-based or seasonal work with a defined end date.
• Probationary Contracts: Typically for 3–6 months to evaluate suitability before permanent employment.
• Part-Time Contracts: For reduced working hours with pro-rated benefits.
• Consultant Agreements: For independent contractors; ensure they are clearly differentiated from employee contracts to avoid misclassification risks.

Drafting employment contracts in India requires compliance with labor laws such as the Industrial Employment (Standing Orders) Act, 1946, and state-specific Shops and Establishments Acts. By keeping contracts detailed yet straightforward, you can avoid legal risks while ensuring transparency with your employees!

How to onboard a remote employee in India?[toc=Onboarding Checklist]

Onboarding remote employees in India is more than just completing paperwork—it’s about creating a seamless experience that helps new hires feel welcomed, equipped, and ready to contribute from day one. Based on our years of experience helping global businesses onboard remote teams in India, we’ve seen that a well-structured onboarding process not only boosts employee satisfaction but also improves retention and productivity.

In this section, we’ll walk you through actionable steps to onboard remote employees in India effectively. Whether you’re working with an Employer of Record (EOR) or managing onboarding internally, this guide will help you get it right.

Step 1: Pre-Onboarding Preparation

The onboarding process begins even before the new hire’s first day. Pre-onboarding sets the tone for their experience and ensures they feel valued.

Here’s what you can do:

• Collect Employee Information: Gather essential details like name, date of birth, contact info, and employment documents.
• Draft Employment Contracts: If you’re using an EOR, they’ll handle this for you by creating localized contracts compliant with Indian labor laws.
• Background Verification: Conduct background checks with the candidate’s consent. This step is often managed by the EOR.
• Welcome Communication: Send a warm welcome email or package to make the new hire feel part of the team before they even start.

Step 2: The First Day

The first day is crucial for setting expectations and helping the new hire settle in. A well-planned Day One ensures they feel supported and ready to dive into their role.

Here’s what to include:

• Employment Documentation: Ensure all paperwork like contracts, NDAs, and tax forms are completed and filed.
• Technology Setup: Provide access to tools, software, and communication platforms like Slack or Microsoft Teams. Schedule an IT session to walk them through the setup process.
• Orientation Call: Introduce them to your company’s culture, values, and policies through a virtual meeting.
• Team Introductions: Arrange virtual meet-and-greets with team members to help them build connections early on.

Step 3: Ongoing Support and Engagement

Onboarding doesn’t end after Day One—it’s a continuous process that can last weeks or even months. Consistent support helps remote employees stay engaged and productive.

Here’s how you can provide ongoing support:

• Regular Check-ins: Schedule weekly or bi-weekly calls to discuss progress, challenges, and feedback.
• Training Sessions: Offer role-specific training as well as sessions on company policies or tools.
• HR Support: Ensure employees know who to contact for issues related to payroll, benefits, or compliance.
• Feedback Loop: Actively seek feedback on their onboarding experience and use it to improve your process for future hires.

Having worked extensively with global companies hiring in India, we can confidently say that onboarding is one of the most critical steps in building a successful remote team in India.

Our advice? Treat onboarding as an opportunity to build trust and connection with your new hires—it’s an investment that pays off in higher engagement and retention rates.

Are Non-Disclosure Agreements (NDAs) legally enforceable in India?[toc=NDAs]

Protecting sensitive business information is crucial when hiring employees in India, and Non-Disclosure Agreements (NDAs) are a key tool for safeguarding your intellectual property and trade secrets. As your Employer of Record (EOR), we can confirm that NDAs are legally enforceable in India, provided they are carefully drafted and meet the requirements of Indian law.

Let’s break this down so you can understand how NDAs work in India and what makes them enforceable.

What makes NDAs enforceable under Indian Laws?

NDAs are governed by the Indian Contract Act, 1872, which outlines the general criteria for any valid contract. For an NDA to be enforceable, it must:

1. Clearly define what constitutes confidential information.
2. Have reasonable restrictions in terms of scope and duration.
3. Include consideration (exchange of value) between the parties.
4. Be signed by all involved parties with free consent.

However, Section 27 of the Indian Contract Act prohibits agreements that unreasonably restrain a person’s ability to practice their lawful profession, trade, or business. NDAs that impose fair and reasonable restrictions—such as protecting trade secrets—are generally upheld by Indian courts.

How do you run background checks on Indian Employees?[toc=Background Checks]

Hiring employees in a new country can be challenging, and one of the most important steps is running background checks. In India, verifying a candidate’s details is crucial because resume fraud is more common than you might think. As an Employer of Record (EOR) in India, we’ve helped global employers  conduct background checks efficiently and in compliance with laws in India.

While background checks aren’t legally required, employers can request information relevant to the job role, such as criminal history or education verification. Let’s look at what you can include in a background screening process.

What should you include in background checks for employees in India?

Here are the main types of checks you can run:

• Criminal Record Check
• Employment History
• Reference Check
• Work Authorization
• Education History
• Credit Reports (Optional)
• Social Media Profiles (Optional)

For more details on how to run background checks step by step, check out our article: Employee Background Checks in India for 2025.

How do you manage payroll and taxes for Employees in India?[toc=Payroll & Taxes]

Managing payroll and taxes for employees in India involves understanding salary structures, ensuring compliance with tax laws, and processing payments accurately. While the process might seem complex, breaking it down into clear steps can simplify things. Let’s walk through the essentials of payroll and taxes in India.

Salary Structure in India

The salary structure typically includes basic pay, allowances (such as HRA and transport), bonuses, and deductions like taxes. For a detailed breakdown of salary components and paystub formats, check out our article: Pay Stub in India: What Foreign Employers Need to Know.

Leave Management, Attendance Tracking, and Payment Cycle

Leave management and attendance tracking are crucial for accurate payroll calculations. Most companies use automated systems to track working hours, leave approvals, and overtime. Salaries are usually paid monthly, by the last working day or within the first  days of the following month. Payments are made in Indian Rupees (INR).

Taxes are an integral part of payroll management in India. Here’s how they work:

1. Tax Deducted at Source (TDS): Employers deduct TDS from employee salaries based on income tax slabs. Employees must provide their PAN (Permanent Account Number) to avoid higher flat-rate deductions. TDS payments must be filed by the 7th of the following month.
2. Professional Tax: This is a state-specific tax deducted monthly or annually, with a maximum annual limit of ₹2,500 depending on the state.
3. Employer Obligations: Employers need a TAN (Tax Deduction Account Number) to deduct and deposit TDS with the government.

Timely deposits of these deductions are mandatory to avoid penalties.

For more detailed information on payroll processing in India, check out our article: Payroll in India: A Comprehensive Guide. If you’re considering outsourcing payroll tasks, explore our article: Top 10 Payroll Outsourcing Companies in India.

What are the mandatory employee benefits in India?[toc=Employee Benefits]

When hiring employees in India, employers are required to provide certain mandatory benefits as per employment laws in India. These benefits ensure employee welfare and compliance with regulations. Let’s break down the key mandatory employee benefits you need to know.

Provident Fund (PF)

The Provident Fund is a retirement savings scheme where both the employer and employee contribute 12% of the employee’s basic salary each month. This fund helps employees save for their post-retirement life.

Employee State Insurance (ESI)

ESI is a health insurance program for employees earning up to ₹21,000 per month. Employers contribute 3.75% of the salary, while employees contribute 0.75%. It covers medical expenses, maternity benefits, and disability compensation.

Gratuity

Gratuity is a lump sum payment made to employees who have completed at least five years of continuous service. It is calculated as:

Gratuity = (Last drawn salary × 15 × years of service) ÷ 26

Maternity Benefits

Under the Maternity Benefit Act, female employees are entitled to 26 weeks of paid maternity leave for the birth of their first two children, along with medical bonuses.

Leave Entitlements

Employees are entitled to paid leaves such as:

• Casual Leave: For personal reasons, typically 7–10 days annually.
• Sick Leave: For health-related issues, usually 12 days annually.
• Earned Leave: Accumulated leave based on days worked, often around 15–30 days annually.

Bonus Payments

Under the Payment of Bonus Act, employers must pay a bonus to eligible employees earning up to ₹21,000 per month. The bonus ranges from 8.33% to 20% of their annual salary.

Minimum Wage Compliance

Employers must adhere to state-specific minimum wage laws that vary by industry and skill level.

Providing these mandatory benefits not only ensures compliance but also builds trust with your workforce. For more details on employee benefits in India, check out our article: Employee Benefits in India: A Complete Guide.

What are the employment laws in India?[toc=Employment Laws]

India’s employment laws are designed to protect employee rights, ensure workplace fairness, and regulate employer-employee relationships. For foreign employers managing their offshore teams in India, understanding these laws is crucial to ensure compliance and avoid penalties. India’s legal framework includes both Central Laws, which apply nationwide, and State-Specific Laws, which vary depending on the location of your business in India.

To simplify, India has consolidated its numerous labor laws into four major labor codes that address wages, social security, industrial relations, and workplace safety. Let’s explore these key laws.

Code on Wages (2019):

• Regulates minimum wages and payment schedules.
• Ensures equal pay for equal work regardless of gender.
• Combines existing laws like the Minimum Wages Act and Payment of Wages Act.

Code on Social Security (2020):

• Expands social security benefits to include gig and platform workers.
• Consolidates laws like the Employees’ Provident Fund Act and Employees’ State Insurance Act.

Industrial Relations Code (2020):

• Simplifies dispute resolution procedures for strikes, layoffs, and retrenchments.
• Introduces a re-skilling fund for workers who lose their jobs.

Occupational Safety, Health, and Working Conditions Code (2020):

• Sets standards for workplace safety, health, and welfare facilities like clean drinking water and restrooms.
• Reduces compliance paperwork by merging multiple laws.

State-Specific Employment Laws

While the labor codes provide a unified framework, state-specific laws still play a significant role in regulating employment terms like working hours, leave policies, and wages. For example:

• Shops and Establishments Acts: Each state has its own version of this Act governing work hours, holidays, leave entitlements, and employment conditions for commercial establishments.
• Industrial Relations Acts: States like Maharashtra have additional provisions for resolving disputes under their Industrial Relations Acts.

Non-compliance with Indian employment laws can lead to hefty fines, legal disputes, or even business closure in extreme cases. Adhering to these regulations ensures fair treatment of employees while protecting your business from reputational damage or penalties.

For more detailed insights into India’s employment laws, check out our article: Employment Laws in India: What Employers Must Know in 2025.

How can you protect your company’s Intellectual Property (IP) in India?[toc=IP Protection]

Protecting your intellectual property in India isn’t just about compliance—it’s about securing your business assets and maintaining a competitive edge. Whether it’s your brand, technology, or creative assets, safeguarding IP ensures your business remains competitive and secure. So, how can you protect your IP in India? Let’s simplify it.

Register Your IP in India

The first step is registering your intellectual property under Indian laws. Without registration, enforcing your rights becomes difficult. Here’s what you can register:

• Patents: Protect inventions and innovations under the Patents Act, 1970.
• Trademarks: Secure your brand name, logo, or slogan under the Trademarks Act, 1999.
• Copyrights: Safeguard creative works like software, designs, and written content under the Copyright Act, 1957.
• Designs: Protect unique product designs under the Designs Act, 2000.

Registration gives you legal ownership and makes it easier to act against infringement.

Monitor for Infringements

Once registered, keep an eye on the market for unauthorized use of your IP. This could include counterfeit products, copied designs, or misuse of your brand name. Regular monitoring helps you act quickly if someone violates your rights.

Enforce Your Rights

If you discover infringement, take immediate action. In India, you can:

• File a civil lawsuit for damages or injunctions to stop further misuse.
• Use specialized IP courts for faster resolution of disputes.

Acting promptly shows that you’re serious about protecting your IP and discourages others from infringing.

Leverage International Treaties

India is part of global treaties like the TRIPS Agreement and Madrid Protocol. These treaties allow foreign companies to extend their IP protection across multiple countries through a single application. If you’ve already registered your IP elsewhere, this makes protecting it in India easier.

Work With Local Experts

India’s IP laws can be complex and navigating them requires expertise. Partner with experienced local IP attorneys who understand the nuances of Indian regulations and can guide you through registrations and enforcement.

What is the work culture like in India?[toc=Work Culture]

Imagine a scenario where a US-based manager expects direct, immediate feedback, but their Indian team member provides a more indirect, context-driven response. Or consider a situation where a European team member leaves the office at 5 PM sharp, while their Indian counterpart stays late to demonstrate commitment and team spirit.

These differences highlight how Indian work culture is shaped by unique values and practices. Let’s explore the key aspects of Indian work culture in simple terms.

1. Hierarchy and Respect for Authority: Indian workplaces are hierarchical, with decisions often coming from senior leaders who are highly respected.
2. Relationship Building: Trust and personal connections matter deeply, and relationships often extend beyond the workplace.
3. Teamwork and Collectivism: Employees prioritize group success over individual achievements, emphasizing collaboration and harmony.
4. Communication Style: Communication tends to be polite and indirect, avoiding confrontation to maintain respect and harmony.
5. Work-Life Integration: The lines between work and personal life are often blurred, with employees staying late or participating in team activities outside work hours.
6. Adaptability and Flexibility: Indian professionals are highly adaptable, thriving in dynamic environments and adjusting quickly to changes.

Appreciating these cultural differences can help you manage your teams in India more effectively, improve communication, and create a positive workplace environment. For a deeper dive into this topic, check out our article: Work Culture in India: All You Need to Know.

How to setup an office space for your employees in India?[toc=Office Setup & GCC]

Setting up office space for your remote employees in India is a crucial step in ensuring their productivity and well-being. As an employer, you have several options to choose from, depending on your team size, budget, and specific requirements. Here are the main options for setting up office space in India:

1. Coworking Spaces: Coworking spaces are a popular choice for small to medium-sized teams. The average monthly cost per seat in coworking spaces across major Indian cities ranges from ₹8,000 to ₹14,000 (approximately $100 to $175).
2. Leased Office Spaces: For larger teams or those requiring more privacy and customization, leasing an office space is a suitable option. On average, the monthly cost per employee for a leased office space ranges from ₹4,800 to ₹9,600 (approximately $60 to $120), excluding setup and maintenance costs.

Cost Considerations:

When deciding between a coworking space and a leased office, consider the following example:For a team of 20 employees in Bengaluru:

• Coworking Space: 20 seats × ₹12,000 per seat = ₹2,40,000 per month
• Leased Office Space: ₹7,200 per employee × 20 employees = ₹1,44,000 per month + setup and maintenance costs.

How do you handle employee termination in India?[toc=Terminations]

Terminating employees in India requires adherence to specific legal frameworks to ensure fairness and compliance. Whether it’s due to redundancy, misconduct, or poor performance, the process must be handled carefully to avoid disputes and penalties. Let’s break it down step by step.

Here are the important laws and guidelines you should be aware of:

• Shops and Establishments Act governs termination notice periods and valid reasons for dismissal, such as redundancy or misconduct.
• Termination terms, including notice periods and severance pay, are often outlined in the employment contract.
• For redundancies, employees are entitled to retrenchment compensation (15 days’ pay for every completed year of service).
• Employers must pay outstanding wages, bonuses, accrued leave, and severance within two days of termination as per the Payment of Wages Act.

Our HR experts have identified four main types of termination in India:

Notice Periods and Compensation

• Notice periods typically range from 30–90 days based on the employee’s role and contract terms.
• Severance pay is mandatory in cases of retrenchment or layoffs and is calculated as 15 days’ average pay for each year of service.

Steps for Handling Termination

1. Provide Written Notice: Issue a formal termination letter stating the reason for dismissal.
2. Conduct Investigations (if needed): For misconduct cases, conduct a fair inquiry before making a decision.
3. Settle Final Dues: Pay all pending wages, leave encashments, bonuses, and severance within two working days post-termination.
4. Recover Company Property: Ensure laptops, ID cards, or other assets are returned during the exit process.

What are the cultural challenges of hiring employees in India?[toc=Cultural Challenges]

Hiring in India comes with unique cultural differences that global employers should be mindful of. Let’s keep it simple and break down the key challenges:

1. Lack of Initiative: Employees may prefer detailed instructions over taking independent decisions, as hierarchy often discourages autonomy.
2. Reluctance to Say No: Indian professionals may avoid pushing back on deadlines or workloads to maintain harmony, which can lead to burnout or missed timelines.
3. Focus on Titles: Designations hold significant value, sometimes overshadowing teamwork and collaboration.
4. High Turnover Rates: Frequent job-hopping, especially among younger employees, makes retaining talent challenging.
5. Time Zone Differences: India’s time zone (10–13 hours ahead of the US) limits real-time collaboration, making asynchronous communication essential.

What are the common compliance challenges employers face in India?[toc=Compliance Challenges]

Navigating compliance in India can be tricky, especially with its complex laws and regulations. It’s important to understand the common challenges to avoid legal and financial risks. Let’s break them down:

1. Misclassification of Employees: One of the biggest pitfalls is incorrectly classifying employees as contractors or consultants. This can lead to non-compliance with labor laws and tax regulations.
2. Payroll and Tax Errors: Mistakes in calculating wages, deductions, or contributions can result in fines and penalties—something no employer wants to deal with!
3. Inadequate Documentation: Not maintaining proper records like employment contracts, payroll details, or statutory documents can lead to legal disputes or compliance issues.
4. Non-Compliance with State-Specific Laws: India’s state-specific laws vary widely, and failing to meet these requirements can result in penalties or liabilities.

The consequences of non-compliance can be serious—fines, imprisonment, or even reputational damage. That’s why it’s essential to take compliance seriously and seek professional guidance to ensure you’re adhering to all applicable laws and regulations.

Why choose Wisemonk to hire employees in India?[toc=Why Choose Wisemonk]

Hiring employees in India can be complex, but Wisemonk makes it simple. As an Employer of Record (EOR) in India, we help global employers like you hire, pay, and manage employees in India—without the need to set up a local entity.

Here’s how Wisemonk supports your hiring needs:

• Talent Acquisition: We help you find top talent in India quickly and efficiently.
• Payroll Management: From salary calculations to timely payments, we handle it all.
• Tax Optimization: We ensure compliance with Indian tax laws while optimizing deductions.
• Employee Benefits: We manage health insurance, provident fund, and other statutory benefits.
• Onboarding & Offboarding: Seamless processes for welcoming and transitioning employees.
• Background Checks: Thorough pre-employment screenings to ensure you hire the right people.
• Equipment Procurement: We handle device sourcing, setup, and delivery for remote employees.
• Compliance Support: Full adherence to Indian labor laws and regulations to avoid penalties.
• Offshore Team Setup: Need a GCC or offshore team? We provide end-to-end support, including company registration.

With Wisemonk’s expertise, you can focus on growing your business while we take care of all the complexities of hiring and managing employees in India.

Ready to build your team? Let’s get started!

FAQs

How can I legally hire an employee in India?

To legally hire an employee in India, you have three primary options: using an Employer of Record (EOR) like Wisemonk, setting up a local legal entity, or engaging contractors. The EOR method is the fastest and most compliant approach, allowing you to onboard employees within 1-2 weeks while ensuring full adherence to Indian labor laws and regulations.

How much does it cost to hire an employee in India?

The cost of hiring an employee in India varies depending on the role and location, but typically ranges from $1,500 to $3,500 per month, including salary, statutory contributions, and administrative costs. An EOR service like Wisemonk can help manage these costs effectively, with pricing starting around $100 per employee per month, significantly reducing overhead compared to traditional hiring methods.

Can I hire an employee in India from USA?

Yes, US companies can hire employees in India through several methods. The most straightforward approach is partnering with an Employer of Record (EOR) like Wisemonk, which handles all legal, payroll, and compliance requirements. This method allows US companies to quickly and compliantly build a team in India without establishing a local legal entity.

Can a US employee work in India?

US employees can work in India by obtaining the appropriate work visa, typically an Employment Visa (E-Visa) or Business Visa (B-Visa). The visa process requires sponsorship from an Indian company, documentation of qualifications, and compliance with immigration regulations. Companies like Wisemonk can assist in navigating the complex visa and work permit processes.

How do US companies pay Indian employees?

US companies can pay Indian employees through several methods: using an Employer of Record service that handles local payroll, setting up a local bank account, or using international payroll platforms. Wisemonk specializes in managing payroll for international companies, ensuring compliance with Indian tax laws, statutory contributions, and seamless salary disbursement.

What is the minimum wage in India in US dollars?

The minimum wage in India varies by state and industry but generally ranges from $90 to $250 per month. In major metropolitan areas and for skilled positions, the minimum monthly wage can be higher, typically around $300 to $500. However, actual salaries depend on factors like job role, experience, and industry standards.