Hire through a PEO in India in 2024 | INS Global

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Hire Globally, Pay Locally, Expand Effortlessly

INS Global is a local partner providing you with global Human Resources services. With the use of our PEO services, we can help you to set up your business, find employees, and start working in over 160 countries while at the same time cutting costs and limiting risks from local regulations.  

A PEO in India (Professional Employer Organization), often called a global EOR (Employer of Record) can provide companies with a cost-effective, quick, and simplified global mobility and expansion strategy by taking care of essential HR services and offering compliance assurance in unfamiliar markets. INS Global’s PEO in India allows companies to hire or transfer employees within 48 hours.

An Employer of Record in India is an organization that acts as the Employer of Record for companies wishing to streamline the global expansion process. By making hiring and managing overseas employees simpler, cheaper, and safer through their innovative technology-based EOR solution, INS Global offers locally based solutions to global employment problems.

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Hire through a PEO in China - Summary

Hire through a PEO in China

Reasons to Choose A PEO in India Over Company Incorporation

Establishing a company in a foreign country is a complex process that requires detailed knowledge of local legal regulations and a physical presence in the potential market. PEOs in India can help ease the burdens of this complexity by lending their legal expertise to their clients and acting as an intermediary preventing these companies from needing to incorporate a local entity.  

A Global PEO in India:  

  • Reduces Time
  • Improves Savings 
  • Limits Dangerous Bureaucratic and Legal Pitfalls 
  • Utilizes Knowledge and Local Networks 

  

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 - 9%
ROI
27%
Closed During Pandemic
-58%
Employer of record in india

How a PEO in India Gives You a Competitive Advantage

Guaranteed Compliance with Local Laws

A PEO professional’s deep understanding of local regulatory and administrative processes ensures that your company complies with every aspect of local law.  

Less Time and Cost

Basic misunderstandings with HR can lead to a surprisingly large occurrence of fees and wasted time whenever entering a new market. PEO solutions help you limit these errors, saving time and money 

Increased Focus on Your Company’s Growth

Through the provision of several key services, like payroll outsourcing, recruitment, and contractor management, a PEO will handle HR processes that can help your market entry seamless while you focus on your company’s growth 

Fast Market Entry

Through the provision of several key services, like payroll outsourcing, recruitment, and contractor management, a PEO will handle HR processes that can help your market entry seamless while you focus on your company’s growth 

One Platform For Everything

For companies that may not have the budget or staffing to operate entire HR departments that can manage HR operations for overseas workers, PEOs provide all the services required to function efficiently.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How Does a PEO or Employer of Record in India Work?

INS Global’s PEO manages your employee recruitment or assignment needs in India by following four simple steps:  

  1. We find a solution that best meets your needs and requirements through in-depth discussion 
  2. Our professionals will provide a legal entity through which you will be able to hire staff and begin operating in India 
  3. We facilitate the complex legal and administrative aspects of recruiting and paying your employees 
  4. Your staff can continue working towards your company’s internal goals in the Indian market while we handle HR  

What’s The Difference Between PEO And Employer of Record?

Once you’ve made the decision to expand into a foreign market and have decided to pursue a PEO/EOR solution, it’s necessary first to understand what the differences between these two are in order to pick the one most suited to your needs:

  • A PEO is a private company that provides HR services to employees of another company 

  • The services provided by a PEO include tax, payroll outsourcing, and regulatory compliance

  • An EOR is similar to a PEO solution but is a company that acts to legally and officially hire employees for other companies
  • In addition, an EOR not only provides similar solutions to a PEO but also undertakes the legal liability of recruiting and employing workers
  • Under the provisions of a PEO agreement, the contract will remain between your company and the future employee
  • Under the provisions of an EOR agreement, the contract will be directed by your company, but will wholly be made between the Employer Of Record and the future employee

Labor Law in India

Employment Contracts In India

Indian labor law can be complex and confusing for those unfamiliar with it. It’s generally best practice to implement a strong employment contract that specifically spells out the terms of compensation, benefits, and termination.  

Any offer letter or employment contract in India should always explicitly state the salary in Indian Rupees and not in a foreign currency. While the current labor laws do not require that the contract be in writing, it’s a predominant practice to directly write all the terms and conditions of the contact and have it signed by all relevant parties.  

Fixed-term contracts are permitted in India as long as the employer will only be employing the future employee for a short duration. The general labor market trend is to use a probation period of up to 6 months. During this period, the employer will have the right to terminate the employee without any notice. The terms of a probation period should be directly stated in the employee’s contract.  

Working Hours In India

The Minimum Wages Act of 1948 states that any person who is employed for hire and is scheduled for work, whether skilled or unskilled, is entitled to receive a minimum wage. Every worker should receive at least one day’s rest every seven calendar days.  

Working hours in India are similar to other countries, with 40 hours of work per week and 8 hours per day. Workers are also entitled to receive at least 10.5 hours of personal time between working days. Any working hours that exceed this amount should be paid at the appropriate overtime rates.  

Overtime in India is typically calculated as 1.5x standard wage. 

Check here the Worldwide Minimum Wage.

Maternity Leave In India

In accordance with the Maternity Benefit Act, each female employee who has worked for the last 80 days at the same employer will be entitled to receive paid maternity leave for 26 weeks. Of these 26 weeks, only a maximum of 8 weeks should be used prior to the expected date of delivery.  

However, in the case of a female employee with two or more children, she will be entitled to 12 weeks of paid maternity leave. Additional paid leave will be prescribed in the event of a miscarriage or medical termination of the pregnancy.  

In addition to paid maternity leave, female employees are also protected from termination from employment based on their pregnancy. Also, the term and conditions of her contract cannot be changed to her disadvantage during her leave.  

There is currently no provision for paternity leave in India. 

Tax Law In India

Both domestic and foreign companies in India are required to pay taxes under the Income-tax Act. While domestic companies are taxed regarding their universal income, foreign companies are only taxed on income that’s earned inside India.  

Individuals are taxed in India at both state and national levels through both direct and indirect taxes.  

Efforts have been made since 2020 to simplify and lower tax rates across India, but the tax on personal income is still likely to be between 5-30% based on a progressive scale. 

Overall the system for individual taxation is very complicated. As it will be the employer’s responsibility to set up taxation for their employees, it’s recommended to partner with a local services provider that can manage tax deductions on the company’s behalf. Click here for calculator. 

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FAQs

In India, the cost of professional EOR services is based on a co-employed worker’s wage. All HR duties necessary to guarantee adherence to all local employment laws are taken care of by this cost.  

Yes, managing employer obligations in India through an India EOR is a secure, legitimate, and effective way to remain compliant without having to create a distinct company structure within the country. This is because an EOR utilizes a legal business that is already created and has qualified HR assistance in the target market. 

An EOR gives your team members access to the full range of employee benefits in India (with the potential to benefit from even greater benefit packages), absolute legal protection, as well as a timely and accurate payment each month. This is in addition to the security of having assured HR compliance services from a professional provider.  

Independent contractors that work with their customers through an Indian EOR structure can access many or all of the same employee benefits as traditional workers while maintaining complete autonomy over how they work, much like when working with an umbrella business.  

Utilizing our extensive understanding of regional business resources and benchmarks, extensive professional networks, and unwavering dedication to ethical hiring practices, our team of skilled recruitment specialists can locate the best local talent in India for your needs. 

Through INS Global, you will receive complete compliance-assured employment outsourcing support that takes into account all local, regional, and national laws from a truly global EOR services provider. This enables you to hire personnel wherever you need them in India with the confidence that all local benchmarks and requirements are met.  

There may be a cap on the number of employees you can hire at once with some PEO or EOR service providers in India, or they may have minimum hiring requirements. However, INS Global is aware that your plan for worldwide growth may call for you to scale up or down swiftly at any time.  

Therefore we allow you the freedom to work towards your objectives by providing you with as many or as few people as you require. 

Salary, recruiting service fees, and any signing bonuses should be included in the total cost of hiring in India along with other direct and indirect expenditures including incentive plans, incentives, and monthly tax and social insurance contributions.  

Indian PEO services offer you the perfect solution to bypass the difficulties of forming a business in India and eliminate the need for you to have a physical address there.  

It’s still advised that you give your employees the choice of a real shared workspace or the opportunity to work remotely when and where necessary for their enjoyment.  

Yes, we guarantee total compliance assurance by matching employees with the relevant visa and work permit requirements when local employment regulations, tax structures, or employee benefits vary for Indian or international citizens.  

EOR and PEO solutions are the ideal options for businesses of all sizes, from SMEs to multinational organizations, all to guarantee the effective and safe employment of foreign workers. This is because they replace more complicated internal HR requirements and may be scaled up quickly to meet rising employment demands as a business grows abroad.  

Companies in a range of industries that either don’t have their own structures in a target country or wish to avoid cost-scaling issues while concentrating on growth would be able to benefit greatly from the legal expertise offered by PEO and EOR services.  

Two examples of third parties who may be used to directly or indirectly engage independent contractors are staffing companies and umbrella companies.  

Most independent contractors in India are either self-employed or own small businesses through which they take money from clients. According to Indian law, contractors must be employed via a work agreement as opposed to an employment contract. 

An independent contractor may be asked to submit a CV, portfolio, verified references, and possibly a signed NDA before work begins.  

Payroll in India is notoriously complex, due to the range of additions and deductions that have to be made by an employee’s company during payroll management.  Payroll is typically done monthly, with some deductions also being made annually.  

Employers then withhold amounts for employee tax, benefits, Provident Fund (PF), and allowances contributions before passing on the net amount and managing these payments on behalf of the employee.  A payslip should then be provided to the employee which includes all deductions and the amounts.  

There is no single recognized minimum wage in India in 2023, instead, a worker’s minimum wage is set by their Collective Bargaining Agreement (CBA) or state regulation 

India provides relatively generous visas for work and business purposes, with many allowing holders to operate in the country for up to 5 years at a time. The most common visa types for work purposes are employment visas (for skilled individuals moving to India to take up employment; available for an extendable duration of 5 years) and business visas (for individuals performing limited work operations in India; available for an extendable period of 5 years). Power and steel sector workers can also apply for a special “Project” visa, available for up to 1 year or the duration of a fixed contract.  

Employers in India must manage and pay a range of payroll taxes on behalf of their employees, as well as make separate employer contributions as part of the payroll process. Total employer contributions amount to 12% of an employee’s salary (with international workers being exempt from some of this)  

Health insurance, life insurance, provident funds, gratuities, stock- or performance-based bonuses, paid time off, and employee support programs are mandatory benefits that must be offered to Indian employees. 

All employment contract amendments must be made with the express and written permission of the employee (plus their employment union in some circumstances).  

All residents of India are eligible for free public healthcare, including secondary and tertiary healthcare for low-income families. However, due to the comparably poor quality of public healthcare in the country, many companies, particularly those employing foreign workers, offer private healthcare plans as an additional employee benefit.  

Written notice periods in India are typically 1-3 months.   

Severance pay is equivalent to a minimum of 1 month of an employee’s salary after the first year of service, with severance rising to 15 days’ salary per year of service for retrenched employees. Collective dismissals may require employees to be given 3 months’ wages as compensation. Workers who have served for more than 5 years with a company are eligible for gratuity payment.

India’s labor laws are made and enforced at national and state levels with the central Ministry of  Labour and Employment guiding the numerous regulatory bodies overseeing day-to-day worker safety and rights.  

India has 3 nationally recognized holidays per year for which employees must receive a paid day off. Each state or territory may also include its own holidays (either paid or unpaid) beyond these  

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