Hire in India
Access India's massive, skilled workforce without a local entity. Vectis navigates state-by-state labor laws, PF/ESI contributions, the new Labor Codes, and TDS — all in one platform.
Quick Facts
Indian Employment Law Guide
A practical overview of India's employment laws, statutory benefits, and compliance requirements for international employers.
Employment Contracts
- ✓Written offer letters / contracts strongly recommended
- ✓Four new Labor Codes consolidating 29 central laws
- ✓State-specific rules may supplement central laws
- ✓Fixed-term contracts permitted (equal benefits apply)
- ✓Probation period typically 3–6 months
Working Hours & Overtime
- ✓Standard: 48 hours/week under the new Labor Code
- ✓Maximum 9 hours/day (2023 Code on Occupational Safety)
- ✓Weekly rest: 1 day mandatory
- ✓Overtime at 2× the regular rate
- ✓Some states allow flexible work schedules (12-hr days, 3-day weeks)
Leave Entitlements
- ✓15–21 days earned/privilege leave per year
- ✓7–12 casual leave days depending on state
- ✓10–16 national and state public holidays
- ✓26 weeks paid maternity leave (Maternity Benefit Act)
- ✓15 days paternity leave (central government employees)
Wages & Pay Structures
- ✓Minimum wage varies by state and skill category
- ✓National Floor Level Minimum Wage: INR 178/day
- ✓CTC (Cost to Company) structure includes PF, gratuity, and allowances
- ✓Variable components: HRA, LTA, medical reimbursements common
- ✓Annual increment cycles typically in April or October
Statutory Contributions
- ✓Provident Fund (PF): 12% employer + 12% employee of basic
- ✓ESI (Employee State Insurance): 3.25% employer / 0.75% employee
- ✓Gratuity: 15 days salary per year after 5 years of service
- ✓Professional Tax: state-dependent (up to INR 2,500/year)
- ✓Labour Welfare Fund contributions in applicable states
Termination & Severance
- ✓Notice period: typically 30–90 days per contract
- ✓Retrenchment requires 1 month notice or pay in lieu
- ✓Government approval required for establishments with 300+ workers
- ✓Retrenchment compensation: 15 days salary per year of service
- ✓Gratuity payable after minimum 5 years (on any separation)
How to Hire in India with Vectis
From offer letter to first payroll — we manage every step of Indian compliance across all states.
Share the details
Role, salary, location (state), and start date. We assess state-specific compliance needs.
We draft the contract
Indian-law employment agreement compliant with the new Labor Codes and applicable state rules.
Onboard & register
PF registration, ESI enrollment, TDS setup, and professional tax where applicable.
Run payroll & stay compliant
Monthly payroll with PF/ESI deductions, TDS filings, Form 16 at year-end, and gratuity tracking.
“We scaled our India engineering team from 3 to 40 engineers across Bengaluru and Hyderabad in under 2 months. Vectis handled the multi-state PF registrations, TDS, and the new Labor Code compliance seamlessly.”
Public Holidays in India
India has 3 national holidays plus numerous state and religious holidays (10–16 total per year, state-dependent).
India Hiring FAQs
Common questions about employing staff in India.
Ready to hire in India?
Vectis is your Employer of Record across all Indian states. We handle multi-state compliance, PF/ESI, and the new Labor Codes so you never miss a filing.
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