Hiring in India

India’s vast talent pool drives global growth, but its labor laws and tax complexities can challenge employers. Omnipresent, as your Employer of Record (EOR), simplifies compliance with EPFO rules and local standards, no local entity needed.

We handle payroll, benefits like the Payment of Bonus Act, and tax filings, letting you focus on teams in Bangalore or Mumbai. Our platform offers a tailored, efficient approach to India’s diverse hiring landscape.

• Fast onboarding, fully compliant.
• Contracts in INR, locally tailored.
• Guidance on market salary trends.
• Easy scaling across regions.

Employer costs include Employee's State Insurance (ESI) and the Provident Fund (PF). Use the OmniCalculator to estimate costs or contact us for further information.

Income taxes 0% - 30%

Income tax rates are levied on a progressive scale, with rates ranging from zero to 30%. In the country's progressive income tax system, portions of an individual's income are allocated to the country's personal income tax brackets, and each portion of income allocated to a tax bracket is taxed at the tax rate applicable to that tax bracket.

Employee contributions

0.75% - 12%

Employees in general contribute, through taxes withheld at source by their employers, 12% of their taxable wages to the EPF, but do not contribute to either the EPS or the EDLI.

Employees' State Insurance (ESI) Scheme: Employee and employer tax rates for the ESI are subject to a maximum amount of employment income paid to an employee during a month upon which the rates may be assessed on the employee and employer.

The ESI tax rate for employees is 0.75%.

Effective since July 1, 2019, employees with average daily employment income of up to ₹ 176 are exempt from paying ESI taxes, although their employer is assessed the applicable ESI tax rate on that employment income. Health and Education Cess

A health and education cess, previously known as an education cess, is payable by each employee and is assessed on the aggregate of the employee's income tax liability

The rate of the health and education cess assessable on an employee is 4% of the aggregate of the employee's income tax liability, including an income tax surcharge amount if applicable but not including the cess itself, and the total rate of 4% consists of a general education cess of 2%, a secondary and higher education cess of 1%, and a cess of 1% to help fund health programs of Ayushman Bharat, also known as the National Health Protection Mission.

Will typically restrict weekly hours to 48 hours a week and 8-9 a day.

Private sector: S&E Acts usually provide for paid sick leave/casual leave of around 10-15 days per year. This paid leave is paid by the employer and cannot be reclaimed from the government.

Paid maternity leave of between 12 weeks to 26 weeks to a female employee after 80 days of continuous work in the preceding 12 months before the maternity leave is taken.

The law does not provide for paternity or parental leave for male employees but it is common in practice to provide paternity leave.

Most SEAs provide for an annual paid holiday entitlement between 15 to 20 days each year. The annual paid holiday can generally be accrued in a year up to a set threshold limit.

Employees other than workmen do not have a statutory right to severance pay in the event of termination unless it is provided for in their contract of employment or the HR policy.

Termination is difficult with or without cause and involves the Local Labour Inspector.

Typically, termination is done through mutual agreement.