Hire compliantly in India. Compare providers, navigate state-level labour laws, mandatory provident fund contributions and one of the world’s largest and most complex employment markets.
Capital
New Delhi
Language
EN, Hindi
Average Salary
INR 50,000
Payroll Cycle
Monthly
Employer Cost
15-25%
Paid Leave
15-21 days
Public Holidays
10-15 state
Tax Rates
0-30%
Detailed guides on the employment topics that matter most when hiring in India. Independently researched, updated for 2026.
India consolidated 29 labour laws into four codes, effective from 21 November 2025 with full enforcement expected by 1 April 2026. This guide covers what changed: the 50% wage rule, gig worker social security, the 48-hour settlement requirement, gratuity after one year, the four-day workweek option, and what it means for EOR and international employers hiring in India.
Read ArticleThe average salary in India is approximately INR 32,000 per month (~USD 382), but that number is almost meaningless for international employers hiring tech talent. A junior developer at TCS earns INR 3.5L per year. A senior full-stack engineer at a Bangalore product company earns INR 20 to 30L. A staff engineer at Google India earns INR 60L+. This guide breaks down real developer salaries by experience level, tech stack, and city, plus total employer costs including EPF, ESI, gratuity, and how an EOR handles it.
Read Article
We independently review and rank providers based on their actual performance in India, covering pricing transparency, onboarding speed, in-country support and contract compliance.
India’s labour laws operate at both central and state level, meaning compliance requirements differ between Maharashtra, Karnataka, Tamil Nadu and every other state. A provider without genuine multi-state operational capability will miss critical registration and filing obligations.
When you hire in India, every employment rule varies by state. Minimum wages, leave entitlements, professional tax and registration requirements differ across 28 states. The figures below represent common ranges, but the actual entitlement depends on the state where your employee works.
| Key Employment Facts | |
| Minimum Wage | INR 178-780/day (varies by state, skill, zone) |
| Probation Period | 3-6 months (by contract, no statutory limit) |
| Standard Working Hours | 48 hours/week (9 hours/day) |
| Paid Annual Leave | 15-21 days (varies by state) |
| Notice Period | 30-90 days (by contract and seniority) |
| 13th Salary | Not statutory (bonuses common, statutory bonus for eligible employees) |
| Sick Leave | 7-12 days (varies by state) |
| Maternity Leave | 26 weeks at full pay (establishments with 10+ employees) |
Good to Know: India’s salary structure splits compensation into basic salary, house rent allowance (HRA), special allowance and other components. PF and gratuity are calculated on basic salary + dearness allowance only, not total CTC. Many employers set basic at 40-50% of CTC to manage contribution costs, but the new Labour Codes (once fully enforced) will require basic to be at least 50% of total wages, significantly increasing PF and gratuity liabilities. The statutory bonus under the Payment of Bonus Act applies to employees earning up to INR 21,000/month and equals 8.33% of wages (minimum) up to 20% (maximum). Maternity leave of 26 weeks at full pay applies to establishments with 10+ employees and covers the first two children only; the third child onwards gets 12 weeks.
When you hire in India, employer contributions of 15-25% of CTC are moderate, but the salary structuring complexity, state-level variations in professional tax and the pending Labour Code changes make payroll more complicated than the headline rate suggests.
| Employer Contributions | |
| Contribution | Employer Rate |
| EPF (Provident Fund) | 3.67% of basic + DA |
| EPS (Pension Scheme) | 8.33% of basic + DA (capped at INR 15,000) |
| ESI (State Insurance, if gross under INR 21,000) | 3.25% of gross |
| EDLI (Deposit Linked Insurance) | 0.50% of basic + DA |
| EPF Admin Charges | 0.50% of basic + DA |
| Gratuity Provision | ~4.81% of basic + DA |
| Total Employer Cost | ~15 to 25% of CTC |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Income Tax (Old Regime) | 0-30% + 4% cess (with deductions) |
| Income Tax (New Regime) | 0-30% + 4% cess (limited deductions) |
| EPF (employee share) | 12% of basic + DA |
| ESI (employee share, if eligible) | 0.75% of gross |
| Professional Tax (state-level) | INR 200/month max (varies by state) |
Total employer cost in India typically runs 1.15x to 1.25x of gross salary (CTC) when PF, ESI, gratuity and admin charges are included. For a mid-level employee on INR 8,00,000 annual CTC in Bangalore, the actual employer outlay is approximately INR 9,20,000 to INR 10,00,000. The cost structure shifts significantly once an employee’s salary crosses the INR 21,000/month ESI threshold, as ESI contributions stop applying.
India has 3 national holidays observed across all states. Each state declares an additional 10-15 regional and religious holidays. The applicable holidays depend entirely on the state of employment.
|
Date |
Holiday |
|
January 26 |
Republic Day |
|
August 15 |
Independence Day |
|
October 2 |
Gandhi Jayanti |
Good to know: Beyond the 3 national holidays, each state government declares its own list of gazetted and restricted holidays. For example, Maharashtra observes Gudi Padwa and Chhatrapati Shivaji Maharaj Jayanti, Karnataka observes Ugadi and Kannada Rajyotsava, and Tamil Nadu observes Pongal and Tamil New Year. Religious holidays (Diwali, Eid, Holi, Christmas, etc.) are declared at the state level with dates varying annually. Most private sector employers in India grant 10-15 holidays total including the 3 national days.
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