How Australian Companies Can Hire Employees in India
Australian companies can hire employees in India without an Indian entity by using an Employer of Record (EOR). The EOR becomes the legal employer under Indian law. It signs the employment contract, runs payroll and files Provident Fund, ESIC, income tax and Professional Tax, while the Australian team directs the daily work. An Indian hire can start in 2 to 3 days once the documents are in. The fee starts from $49 per employee per month.
Australian employers work within the National Employment Standards, which set minimum notice and redundancy entitlements. However, staff employed in India through an EOR are covered by Indian law and an Indian contract instead. The gaps below are what to plan for.
How Australian Companies Hire in India Without an Entity
Employer of Record in India already holds the Indian entity and the registrations that come with it. The company selects the candidate and signs a service agreement with the EOR. The EOR then handles the rest:
- The company decides the role, pay and start date, and signs the EOR service agreement.
- The EOR issues the Indian offer letter and employment contract.
- The candidate submits identity, bank and tax documents.
- The EOR registers the employee for PF and ESIC where they apply.
- The first payroll runs and the employee starts work under the company’s direction.
This route suits an Australian company that wants a first team of engineers, analysts or support staff in India without forming an Indian company first.
EOR or Own Indian Subsidiary
| Point | Employer of Record | Own Indian subsidiary |
| Legal employer | The EOR | The Australian company’s Indian subsidiary |
| Time to first hire | 2 to 3 days once the documents are in | Several months, after incorporation, tax registration and a bank account |
| Directors | None needed | A private limited company needs at least two directors, and at least one must be resident in India |
| Compliance owner | The EOR | The Australian company |
| Best for | First hires and market tests | Large permanent teams |
Many companies start with an EOR. Then they move staff to a subsidiary once headcount justifies it. The full comparison is in EOR vs setting up a subsidiary in India.
What Differs From Australian Practice
| Australian habit | How India differs |
| Minimum notice under the National Employment Standards runs from one to five weeks by length of service, with an extra week for some employees over 45 | In India, notice comes from the employment contract and is commonly 30 to 90 days, followed by a documented exit process. See termination, severance pay and notice period rules in India. |
| Redundancy pay under the National Employment Standards | Indian law has its own retrenchment rules, and exit terms are set in the contract and by law. The EOR manages notice, final settlement and any statutory payments. |
| Superannuation paid on top of salary | In India the employer contributes 12% of PF wages to the Provident Fund, and the employee contributes 12%. The EOR deducts and remits both. |
| Privacy Act for employee data | India’s Digital Personal Data Protection Act also applies to data of employees in India, so the contract should cover both. See EOR and employee data privacy under the DPDP Act. |
Time Zones and Working Hours
India Standard Time is UTC+5:30 and does not change with the seasons. Sydney and Melbourne are on UTC+10, or UTC+11 during daylight saving. India is therefore 4.5 hours behind Sydney in winter and 5.5 hours behind in summer. Perth is on UTC+8, so India is 2.5 hours behind.
For example, if Indian staff work 09:00 to 17:00 IST, that is 13:30 to 21:30 in Sydney in winter. The Australian team shares the late afternoon with India, and Perth teams share most of the working day. That is enough for regular stand ups without shift patterns.
Statutory Costs an Australian Employer Should Budget
The EOR fee is only part of the cost of an Indian employee. Employers also pay statutory contributions, which vary with salary:
- Provident Fund. The employer contributes 12% of PF wages. The wage ceiling is ₹25,000 a month from 17 September 2026 (SCC Online).
- ESIC. It applies to employees earning up to ₹21,000 a month, with an employer contribution of 3.25% of wages.
- Overall. Employer statutory cost is roughly 4% to 12% of gross pay, depending on the salary.
The full list is in statutory benefits in India. Fee structures are compared in EOR pricing in India.
When an EOR Is Not the Right Fit for an Australian Company
A large, permanent India team usually costs less through its own subsidiary over time. A PEO becomes an option only after the company owns a registered Indian entity (see PEO services in India). Contractors are a separate route with their own classification risk, covered in hiring contractors in India.
Frequently Asked Questions About Hiring in India From Australia
Can an Australian company hire employees in India without an Indian entity?
Yes. An Employer of Record becomes the legal employer in India, so the Australian company needs no Indian entity, registrations or bank account of its own for those staff.
How fast can an EOR start an employee in India?
An Indian hire can start in 2 to 3 days once the contract is signed and the documents are in. A foreign national who needs a visa takes roughly 2 to 3 months, depending on the country.
Do the National Employment Standards apply to staff employed in India?
No. Staff hired through an EOR are employed under Indian law on an Indian contract, so Australian minimum notice and redundancy rules do not apply to them.
What replaces superannuation in India?
The Provident Fund. The employer contributes 12% of PF wages and the employee contributes 12%. The EOR deducts and remits both.
What is the time difference between Australia and India?
India is 4.5 hours behind Sydney and Melbourne in winter and 5.5 hours behind in summer. It is 2.5 hours behind Perth. India does not change its clocks.
What does an EOR cost for an Australian company hiring in India?
The EOR fee starts from $49 per employee per month. Salary, employer statutory contributions and any benefits are paid on top.