We can be your PEO or EOR in India
Professional Employer Organization
Professional Employer Organization
We will handle everything from onboarding the staff, payroll, employee benefits, attendance management, employment taxes, while you keep control of employees day to day activities.
Looking for an easy and compliant expansion into India?
Looking for an easy and compliant expansion into India?
CLIQHR India Professional Employer Organization (PEO), we will manage the HR administration overhead that comes with global expansion. At CLIQHR, we take care of all of your HR needs including hiring, onboarding, payroll, tax, insurance and benefits, while you maintain control of your employees’ day to day activities. Also, CLIQHR as an Employer of Record (EOR), will allow you to hire employeesquickly in India without having to establish an overseas entity.
With CLIQHR as your India EOR, you can save your business up to 50-60% in costs when compared to establishing your own Entity. To bypass the legal hassle and save you time, we utilize our infrastructure in India to compliantly hire and onboard employees on your behalf. You maintain control of employees day to day activities and keep full oversight of your global team. Our Global Employer of Record solution allows you to hire distributed workforces across all States and union territories in India.
CLIQHR PEO services in India will take care of all of your HR administration needs, including employee hiring and onboarding, administrative functions, payroll, tax deductions and employee health insurance and benefits.
India’s 29 states each have different laws. When a business expands into the country, they must understand that laws surrounding their products or services can vary from state to state. No matter a business’ sector, they must explore how laws vary between states before moving into or marketing in an Indian State. Companies must also consider central, state, and local taxes and how they apply. Relying on an Employer of Record helps firms navigate these often-complex laws and ensures compliance.
Salaries in India
Probation Periods
There are no direct laws outlining probation periods in India. However, probation periods are allowed and common practice.
Bonuses in India
Eligible employees in India may earn between a minimum of 8.33% and up to 20% of their annual salary within the accounting year. In 2015, amendments to India’s Payment of Bonus Act 1965 extended eligibility to include workers earning up to INR 21,000.
Termination and Severance Conditions
All employers in India must give 30 to 90-day notice periods to employees whose primary roles are not supervisory, administrative, or managerial. Fifteen days’ pay is due to employees for each year worked. Certain sectors require government approval before termination; most only require government notification.
Paid Time Off & Benefits
Expectant mothers in India take 26 weeks’ paid time off for their first two children; mothers receive 12 weeks’ pay for three or more children. All mothers receive 100% of their income, based on earnings average six months before birth. Employers with headcounts exceeding 50 employees must provide daycare for their employees’ children.
Paternity Leave
There is no law in India mandating paternity leave for private sector businesses. However, Indian central government employees may take up to 15 days’ leave before, or up to six months after, their child’s birth.
Earned or Privilege Leave
Employees in India earn a minimum of 15 days leave, accrued in the previous year, and only taken the following year. However, laws vary between states.
Vacation in India
The number of paid time off and vacation days varies between states and organizations.
Casual Leave
Employees may take up to 10 days of casual leave. “Casual” leave gives employees the opportunities to not come into work without applying for leave in advance.
Sick Leave in India
State laws regarding sick leave vary, but most states offer around 10 days’ sick leave. It is uncommon for businesses to provide short-term sickness benefits.
Payroll
Tax dates:
- Individual: July 31, 2020
- Body of Individuals: July 31, 2020
- Hindu Undivided Family: July 31, 2020
- Association of Persons: July 31, 2020
- Businesses (requiring an audit): September 30, 2020
- Businesses (requiring TP report): September 30, 2020
Average workweek hours:
Employees may not work more than 48 hours per week. This is considered a “normal” working week in India.
Overtime considerations:
Most salaried workers do not receive overtime for staying late to complete work. Under India’s Minimum Wages Act, overtime wages are double the amount of ordinary wages. However, overtime rates vary between states.
Taxes
Resident companies are taxed on global income, while non-resident companies are taxed only on income generated in India.
Employer contributions include up to 12% for the Employees’ Provident Fund (pension fund), 4.75% to health insurance, 0.50% for EPF Administration Fee, and a fixed amount for Employee Deposit Linked Insurance.
Employee taxes:
0-30%
Goods & Services Tax (GST):
0 – 18%
