INDIA
|
SOUTH ASIA
Great talent. New possibilities.
Hire in the India.
Build your team in India with a clear path from hiring to payday. Explore local employment essentials and flexible ways to engage and pay contractors with Rise.
55.6%
Labor force participation · August 2026
52.8%
Worker population ratio · August 2026
5.0%
Unemployment rate · August 2026
UTC+5:30
Time zone · year-round, no DST
LOCAL KNOWLEDGE. GLOBAL AMBITION.
Your next chapter starts here.
India gives your team the world's largest working-age population and a time zone that overlaps the European morning and the US evening. Labor force participation stood at 55.6% in August 2026, with a worker population ratio of 52.8% and unemployment at 5.0%. Start your hiring plan by choosing the right relationship for each role, then align contracts and payments with the four Labour Codes in force since November 2025 and applicable state rules.
Country Snapshot
What To Know
Capital
New Delhi
Currency
Indian rupee (INR)
Working language
English and Hindi in business and government; 22 scheduled languages regionally
Time zone
India Standard Time (UTC+5:30), no daylight saving
Hiring approach
Local employment for ongoing employee roles; independent contracts for genuinely independent professional services, documented to withstand reclassification.
Payroll planning
Define the salary structure, Provident Fund and gratuity treatment, state professional tax, and monthly payment timing before onboarding.
Bengaluru. A different perspective on your next hiring market.
BUILD YOUR LONG-TERM TEAM
Hiring employees in India
For roles that sit inside your organization, start with a local employment arrangement. Budget for the full employment package and identify who will handle EPFO and ESIC registration, state Shops and Establishments compliance, monthly TDS deposits, and ongoing administration.
Employment Essential
At a Glance
Employment terms
The four Labour Codes took effect November 21, 2025, replacing 29 older statutes. Written appointment letters are mandatory. “Wages” for statutory purposes must be at least 50% of total remuneration. State Shops and Establishments Acts govern hours, leave, and holidays.
Salary payments
Monthly pay in rupees by bank transfer, by the 7th of the following month for establishments with fewer than 1,000 workers. Minimum wages vary by state and scheduled employment.
Annual bonus
A statutory bonus of 8.33% to 20% of wages applies to eligible employees earning up to ₹21,000 per month. Gratuity of 15 days’ wages per year generally becomes payable after five years, and after one year for fixed-term employees.
Paid annual leave
Earned leave accrues at roughly one day per 20 days worked, plus casual and sick leave and 10 or more state-dependent public holidays. Paid maternity leave is 26 weeks.
Employer cost planning
Include salary, employer Provident Fund at 12% of wages, ESI at 3.25% for eligible employees, gratuity accrual, statutory bonus, leave encashment, and health cover.
Employment framework: Code on Wages 2019, Code on Social Security 2020, Industrial Relations Code 2020, Occupational Safety, Health and Working Conditions Code 2020, and state Shops and Establishments Acts. Requirements vary by state, establishment size, and wage level.
Explore an employment route with Rise.
Rise EOR manages local employment contracts, payroll, and compliance in supported markets. Discuss your India hiring plan with the team to confirm availability, timing, and the right setup.
India EOR availability is not confirmed on Rise’s current product page. Confirm coverage before making an offer.
WORK WITH INDEPENDENT SPECIALISTS
Hiring contractors in India
Bring independent expertise into your business with clear deliverables, documented terms, and a reliable payment process. Choose a service agreement that reflects how the work will actually be performed.
Set Up For Success
Your Contractor Checklist
Scope & autonomy
Agree on deliverables, timelines, and independent working practices. Courts apply control and integration tests; fixed hours, exclusivity, and supervision can point toward employment.
Service agreement
Document fees, currency, payment timing, GST treatment, intellectual property, confidentiality, and termination terms.
Tax & invoicing
Confirm the contractor’s PAN and GST registration where turnover exceeds ₹20 lakh. Exported services may be zero-rated. Indian payers generally deduct 10% TDS on professional fees.
Onboarding
Collect identity and payment details, signed agreements, and the documentation your engagement requires.
Payment preferences
Agree on supported withdrawal options and make fees, conversion, and settlement expectations clear. Inbound foreign payments follow FEMA purpose-code rules.
One place to manage payday.
Onboard your contractors, organize payments, and fund payroll in USD or supported stablecoins. Give contractors flexibility over supported withdrawals, including INR.
More support for your engagements.
Add contractor classification, contracts, onboarding, and compliance support. Ask Rise about the scope of coverage for your India team.
Chandni Chowk, Delhi. Local character, connected to a world of opportunity.
PLAN BEYOND THE HEADLINE SALARY
What does hiring in India actually cost?
Start with the agreed gross salary or contractor fee, then separate business costs from worker deductions. The examples below use Indian rupees (INR), apply FY 2026–27 rules, and illustrate a budget, not a final payslip or quote.
BUSINESS BUDGET
Employer costs
Cost
Budget Basis
Gross salary
100% of agreed pay
Employer Provident Fund
12% of wages, split between the pension scheme and provident fund. The applicable base depends on statutory coverage and salary structure.
EDLI and administration
0.5% EDLI, capped at ₹75 per month, plus a 0.5% EPF administration charge.
ESI and gratuity
Employer ESI is 3.25% for eligible employees earning up to ₹21,000 monthly. Gratuity accrual is roughly 4.81% of wages.
Rise service fees
Request a separate Rise platform or EOR/AOR quote. Also budget for statutory bonus, leave encashment, health insurance, and state welfare funds where applicable.
EMPLOYEE PAYSLIP
Employee deductions
Deduction
Standard Rate
Employee Provident Fund
12% of wages on the applicable contribution base.
Employees’ State Insurance
0.75% of gross pay for eligible employees earning up to ₹21,000 monthly.
Professional tax
State levy of up to ₹2,500 per year; not levied in Delhi and several other states.
Income tax (salary TDS)
New-regime progressive slabs from nil to 30%, with a ₹75,000 standard deduction and applicable rebate, plus 4% cess.
Income tax
Withholding varies with annual taxable income, deductions, and regime election.
Other deductions
Check voluntary PF, National Pension System elections, salary advances, or loan recoveries.
Contribution baseline: EPFO and ESIC rates under the Code on Social Security 2020. Income-tax framework: Income Tax Act 2025, effective April 1, 2026. Confirm the state, wage structure, and regime election.
WORKED EXAMPLE · ₹100,000 GROSS / MONTH
One salary. Two different numbers.
Employer monthly budget equivalent
₹104,355–₹108,730
Includes PF, EDLI, administration charges, and gratuity accrual
Employee regular-month pay
₹93,800
After PF on ₹50,000 wages and ₹200 professional tax; income tax is nil in this illustration
Employer Budget Component
PF ON STATUTORY CEILING
PF ON FULL WAGES
Monthly gross salary
₹100,000
₹100,000
Employer PF
₹1,800
₹6,000
EDLI and EPF administration
₹150
₹325
Gratuity accrual
₹2,405
₹2,405
Monthly budget equivalent
₹104,355
₹108,730
Illustration assumes ₹1,200,000 annual pay, wages of ₹50,000, no ESI or statutory bonus eligibility, and ₹200 monthly professional tax. Totals exclude health insurance, leave encashment, welfare funds, and Rise fees. Figures rounded to the nearest rupee.
Contractor costs: what the business pays, what the contractor keeps.
A contractor’s invoice is business revenue. The contractor needs to budget for tax, benefits, time off, and operating expenses before treating it as spendable income.
Cost Item
Hiring Business
Contractor
Service fee
Agreed invoice plus 18% GST where applicable for an Indian client; exported services may be zero-rated.
Receives the agreed fee before their own costs.
Tax & social coverage
Indian payers generally deduct 10% TDS. Foreign payers without an Indian presence generally have no withholding duty.
Pays tax on business income, often through presumptive taxation. No mandatory employee social security.
Payment & administration
Add the agreed Rise plan, payment fees, and any conversion costs.
Confirm who bears withdrawal and conversion fees and retain foreign inward remittance records for GST exports.
Benefits & operating costs
Include any negotiated allowances in the contract.
Set aside amounts for health insurance, retirement, equipment, accounting, and non-billable time.
Presumptive taxation: what an Indian professional contractor pays
Component
FY 2026–27 RATE OR RULE
Presumptive income
50% of gross professional receipts
Income tax
New-regime slabs plus 4% cess
GST registration
Generally required above ₹20 lakh turnover
Social security
None mandatory for genuine contractors
Contractor Example
₹100,000 invoiced per month
At a steady ₹1,200,000 over 12 months with digital receipts, an eligible professional under the presumptive scheme declares ₹600,000 as income. That sits within the rebate limit, so income tax is nil, and turnover below ₹20 lakh means GST registration is not required. The contractor keeps the full ₹100,000 per month before personal costs.
This is not equivalent to an employee’s net salary: the contractor example includes no employer-funded Provident Fund, gratuity, paid leave, or health cover.
Make Your Budget Specific
Get a breakdown for your actual hire.
Share the role, work state, gross salary or contractor fee, benefits, and preferred payment method. Ask Rise to separate statutory costs, service fees, and payment costs in your quote.
THE RISE ADVANTAGE
A better payday. A better team experience.
Give your global workforce more choice in how they receive their earnings, with payroll built around the way people work.
Eyebrow
Daily payroll. More flexibility.
With daily pay schedules, eligible employees can receive pay more frequently and better align income with everyday expenses.
Mon
Tue
Wed
Thu
Fri
Daily payroll is available through Rise’s US Direct Payroll product. Confirm eligibility, state pay-frequency and final-pay rules, and setup with Rise.
Eyebrow
Hybrid payroll. More choice.
Connect traditional and crypto payments. Fund payroll in USD, USDC, or USDT, with supported local-currency and crypto withdrawal options for your team.
USD
USDC
USDT
Options depend on location and engagement type. US employee wages must be paid in US dollars through compliant methods under federal and state wage-payment law; crypto withdrawals are a post-payroll option and do not replace those obligations.
