Employer of Record Services in India

Hire Employees in India Without Establishing a Local Legal Entity

Employer of Record in India is the compliant way for a foreign company to employ people in India without its own entity. Setting up a subsidiary first means months of registrations before the first salary, and an unregistered hire creates statutory and tax exposure. EOR Services India becomes the legal employer from day one. We sign the employment contract, run payroll in rupees and file EPF, ESI, professional tax and TDS, while the client directs the daily work.

Most Indian hires start in one to three weeks, and services start from $49 per employee per month. Software engineers, sales teams and Global Capability Centres use the same model, from a single hire to a large team. EOR Services India has deployed 42,000+ professionals for 550+ clients in 18+ years.

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Employer of Record in India

42,000+Professionals Deployed

550+Satisfied Clients

18+Years of Experience

13Offices Worldwide

Trusted by Global Employers Hiring Across

  • Automotive
  • Semiconductors
  • BFSI
  • Consumer Business
  • Chemicals
  • E-Commerce and Startups
  • Engineering and Manufacturing
  • IT- Product Development
  • IT Services / ITES
  • Pharmaceuticals And Life Sciences
  • Power And Transmission
  • Research, Analytics and Consulting
  • Telecom

Employer of Record Services

What Is an Employer of Record (EOR) in India?

An Employer of Record (EOR) lets an international company hire in India without its own legal entity. The client manages daily work, goals and performance. The EOR is the legal employer: it signs the contract, runs payroll, files statutory returns and tax, provides benefits and handles HR.

Build a Team in India Faster

Choosing an Employer of Record in India is usually the first step for a company planning to hire employees in India. With an EOR you do not incorporate a company, build a payroll setup or track statutory changes yourself, so you can start hiring sooner.

A software engineer hire, a first sales presence, a Global Capability Centre (GCC) or a market test all run on the same model. You start with one person and add more as the business grows, without waiting on a subsidiary.

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An Employer of Record Manages

  • ✓Employment Contracts
  • ✓Payroll Administration
  • ✓Income Tax (TDS)
  • ✓EPF Administration
  • ✓ESI Compliance
  • ✓Employee Benefits
  • ✓HR Administration
  • ✓Exit Management

No Local Entity Required

Start hiring in India without incorporating a subsidiary.

Accelerated Hiring

Reduce the time required to onboard employees.

Employment Compliance

Payroll, statutory obligations and HR administration managed professionally.

Dedicated HR Support

Continuous HR support throughout the employee lifecycle.

Employer of Record in India at a Glance

Employer of Record in India: Key Facts

An Employer of Record (EOR) in India is a company that legally employs staff on behalf of a client, so the client can hire in India without setting up its own entity. We sign the employment contract, run payroll, deduct and file EPF, ESI and income tax, and handle HR administration. The client directs the daily work. Pricing starts from $49 per employee per month. The same arrangement is also called EOR in India, Employer of Record India or an India Employer of Record: the EOR holds the registrations, and the client holds no entity.

Indian Employment Rules We Apply to Every Employee

Item Rule that applies
EPF contribution 12% from the employee and 12% from the employer, on wages up to the ceiling
EPF wage ceiling ₹25,000 a month from 17 September 2026 (earlier ₹15,000). Maximum employee contribution at the ceiling: ₹3,000 a month
ESI contribution Employer 3.25% and employee 0.75%, for employees earning up to ₹21,000 a month
Gratuity Paid after 5 years of continuous service. Fixed term employees who joined on or after 21 November 2025 qualify after 1 year
Final settlement Wages due within 2 working days of the employee leaving; gratuity within 30 days of becoming payable
Labour codes In force from 21 November 2025. Central rules notified on 8 May 2026

Last updated: 9 October 2026. Sources: EPFO, ESIC and the Ministry of Labour and Employment.

Employer of Record or Own Indian Entity

Point Employer of Record Client’s own Indian entity
Legal employer The EOR The client’s Indian company
Local entity needed No Yes, the client incorporates and registers it
EPF, ESI and tax registrations Held and filed by the EOR Registered and filed by the client
Payroll and statutory filings Run by the EOR every month Run by the client’s own team or a payroll vendor
Fee From $49 per employee per month The client’s own setup, legal, accounting and HR costs
Moving staff later Employees can transfer to the client’s entity through a planned process Staff already on client payroll

A Professional Employer Organization (PEO) in India needs the client’s own registered Indian entity, so it does not replace an EOR for a company that has no entity yet. Read our guide to EOR solutions in India to see how EOR, payroll, recruitment and IT staffing fit together.

More Questions About Hiring Through an Employer of Record in India

What contributions apply to an employee hired through an Employer of Record in India?

Employer and employee each pay 12% of wages to EPF, up to a wage ceiling of ₹25,000 a month from 17 September 2026. ESI applies to employees earning up to ₹21,000 a month, at 3.25% from the employer and 0.75% from the employee. The EOR deducts, files and remits both.

What have the new labour codes changed for employers in India?

The labour codes came into force on 21 November 2025 and the central rules were notified on 8 May 2026. Wages are now due within 2 working days of exit, gratuity is due within 30 days of becoming payable, and fixed term employees who joined on or after 21 November 2025 qualify for gratuity after 1 year. The EOR applies these rules to client contracts and payroll.

Why Global Companies Choose an Employer of Record

Business Challenges Solved by an Employer of Record in India

Hiring in India means dealing with labour law, payroll, HR and tax from day one. An Employer of Record in India takes on that work, so you can employ and pay people in India without a local legal entity.

Need to Hire Quickly

Entity incorporation and operational setup can delay hiring for weeks or months.

How we help: Start hiring in India without establishing a local company while we manage the employment framework.

Managing Employment Laws

Indian labour regulations need ongoing local expertise.

How we help: We issue the contracts, handle statutory requirements and run workforce administration.

Payroll and Tax Administration

Managing payroll, deductions, and statutory reporting can be resource-intensive.

How we help: We run monthly payroll, pay salaries, deduct tax, make statutory contributions and file the reports.

Supporting Employees

Employees require HR assistance, benefits administration, leave management, and ongoing support.

How we help: A dedicated HR team supports employees from joining to exit.

Scaling Across India

Hiring across multiple states introduces additional compliance and administrative complexity.

How we help: Hire employees across India through one Employer of Record partner with a consistent employment experience.

Reducing Operational Overhead

Building HR, payroll, legal, and compliance infrastructure requires considerable investment.

How we help: The client focuses on growing the business while we manage employment administration in India.

Our Process

How Our Employer of Record Services Work in India

We help international companies hire employees in India quickly. Each hire gets a compliant contract, correct payroll, statutory filings and HR support from day one until exit.

01. Consultation

Understand hiring plans, locations, job roles, compensation and timelines.

02. Employment Planning

Prepare compliant employment structures, payroll setup and documentation.

03. Employment Offer

Issue compliant employment agreements and complete documentation.

04. Employee Onboarding

Employee joins with statutory registrations and onboarding completed.

05. Payroll and Compliance

Monthly payroll, tax administration, EPF, ESI and statutory compliance.

06. Ongoing HR Support

Continuous HR administration until employee separation.

The Client Manages

  • ✓Hiring Decisions
  • ✓Candidate Selection
  • ✓Daily Work & Projects
  • ✓Performance Reviews
  • ✓Team Management
  • ✓Business Operations

We Manage

  • ✓Employment Contracts
  • ✓Payroll Administration
  • ✓Salary Payments
  • ✓EPF, ESI & Statutory Compliance
  • ✓Tax Administration (TDS)
  • ✓Employee Benefits & Leave
  • ✓HR Support & Offboarding

Costs, Rules And Risks

What an Employer of Record Costs and Which Indian Rules Apply

The monthly fee is one part of the cost of an Employer of Record in India. Salary, employer statutory contributions and gratuity are paid on top, and the rules differ by state. The tables below show how the pieces fit together.

How the Cost of One Employee Is Built

The EOR fee starts from $49 per employee per month for the basic package, which covers taking an employee on payroll. The final fee depends on the client’s requirements, and current rates are on the pricing page. Salary and the employer share of statutory contributions are paid in addition, along with group insurance where the client chooses it. The example below uses a monthly gross salary of ₹1,25,000, of which basic is ₹62,500.

Cost item Basis Monthly amount
Gross salary Agreed with the employee ₹1,25,000
Employer EPF at the wage ceiling 12% of ₹25,000 ₹3,000
EDLI 0.5% of ₹25,000 ₹125
EPF admin charge 0.5% of ₹25,000 ₹125
Gratuity provision About 4.81% of basic ₹3,006
ESIC Not applicable above ₹21,000 a month ₹0
Employer cost before the EOR fee and insurance ₹1,31,256

If EPF is paid on actual basic instead of the ceiling, the EPF line becomes ₹7,500 and the total is about ₹1,35,756. The ceiling is ₹25,000 a month from 17 September 2026 (source: SCC Online). A full breakdown of fee models is in cost of EOR services in India and EOR pricing models in India.

How Long Onboarding Takes

Hire type Typical time
Employee already in India One to three weeks
Foreign national who needs a visa Roughly 2 to 3 months, depending on the employee’s country

Onboarding time for Indian hires starts once the employee’s documents are in. Visa timing is set by the authorities and varies by nationality, so it is quoted as an estimate.

Statutory Rates and Due Dates

Item Rate or date
Employer EPF 12% of wages up to the ceiling, split between the EPF and EPS accounts
EDLI and admin charges 0.5% each, on the same wages
Employer ESIC 3.25% of wages for employees earning up to ₹21,000 a month; the employee pays 0.75%
EPF and ESIC payment 15th of the following month
Salary TDS deposit 7th of the following month
TDS returns 31 July, 31 October, 31 January and 31 May
Form 16 By 15 June after the tax year
Professional tax Up to ₹2,500 a year; the rate and slabs differ by state

Rates are from CorpReady and dates from TaxAJ. Government sources: PIB on the labour codes, PIB on the EPF wage ceiling and the Ministry of Labour codes page. The Income-tax Act, 2025 applies from 1 April 2026, so section numbers on forms may differ from older guides.

State Level Rules

Central law sets EPF, ESIC, gratuity and the labour codes. States add their own rules through Shops and Establishments Acts, professional tax and Labour Welfare Fund contributions. Working hours, holidays, leave and registration steps can therefore differ between Karnataka, Maharashtra, Delhi and other states. The employing entity registers in each state where an employee works, so the location of every hire should be shared before the offer is issued.

What Every Employee Is Entitled To

Entitlement Rule
Maternity leave 26 weeks for the first two children under the Maternity Benefit Act
Gratuity After 5 years of service for permanent staff and after 1 year for fixed term staff
Final settlement Wages within 2 working days of exit under the labour codes; gratuity within 30 days of becoming payable
Notice period Set in the employment contract
Leave and holidays Set by the Shops and Establishments Act of the state where the employee works, plus any extra the client adds

Risks of Hiring in India Without an Employer of Record

Risk What can go wrong
Misclassified contractors A full time worker paid as a contractor may be treated as an employee, which can bring back dues, interest and penalties
Taxable presence A foreign company with staff in India acting on its behalf may create a taxable presence; tax advice should confirm the position
Intellectual property Under the Copyright Act, 1957 an employer is first owner of work made in the course of employment (Section 17), while an assignment from a contractor must be written and signed (Section 19)
Missed filings Late EPF, ESIC or TDS payments attract interest and penalties

FAQs

Frequently Asked Questions About Hiring Through an Employer of Record in India

Employer of Record services in India, including compliance, payroll, onboarding, pricing, and the factors businesses should consider when hiring employees without establishing a local legal entity.

What employment responsibilities does an Employer of Record manage in India?

An Employer of Record is the legal employer of your workforce in India. It handles contracts, payroll, statutory registrations, tax deductions, benefits, leave, onboarding, offboarding and HR administration. Your business still manages daily work, projects and performance.

How is an Employer of Record different from a Professional Employer Organization (PEO)?

An Employer of Record is the legal employer, so a foreign company can hire in India without its own entity. A Professional Employer Organization works through co-employment and usually needs the client to have a registered Indian entity already. For a company entering India, an EOR is generally the more practical route.

How quickly can employees be hired through an Employer of Record in India?

Timing depends on the employment terms, documents, candidate acceptance and statutory registrations. Once the documents are in, most Indian hires start in one to three weeks.

What qualities should businesses consider when selecting an Employer of Record in India?

Check the provider’s experience with Indian labour law, payroll accuracy, statutory compliance, pricing transparency, HR support, data security, onboarding, reporting, and coverage across Indian states.

How does an Employer of Record manage payroll and statutory compliance in India?

The EOR calculates salaries, runs payroll, deducts statutory contributions and income tax, issues payslips, files the returns and remits employer and employee contributions under Indian rules. That keeps payroll accurate and compliant every month.

Can employees hired through an Employer of Record later be transferred to our own Indian entity?

Yes. Many companies start with an Employer of Record while they test the Indian market. If they set up their own entity later, employees can move to it through a planned transfer that follows employment law and their contracts.

How much do Employer of Record services typically cost in India?

Pricing depends on headcount, pay structure, work locations, payroll complexity, benefits and the level of HR support. Most providers charge either a fixed monthly fee per employee or a custom price based on scope. Our fee starts from $49 per employee per month.

Why do international businesses choose EOR Services India?

EOR Services India handles employment, payroll, statutory compliance, benefits, HR support and onboarding across India. Our local experts manage these obligations so you can hire without carrying the admin.

Is using an Employer of Record legal in India?

Yes. The EOR is a registered Indian employer that signs the contract and files EPF, ESIC and TDS in its own name, so the employment runs under Indian law. The employing entity should be named on the contract.

How is the cost of an Employer of Record in India calculated?

The fee starts from $49 per employee per month. Salary, employer EPF, EDLI, admin charges, gratuity and any group insurance are paid on top. For a gross salary of ₹1,25,000 a month, employer statutory cost is about ₹6,256 before the fee and insurance.

Can an Employer of Record hire contractors in India?

An EOR employs people on payroll, so it is the route for full time staff. Independent contractors are engaged under a services agreement, and a worker who works full time under daily direction may be treated as an employee in practice.

Which Indian entity signs the employment contract in an Employer of Record arrangement?

The EOR’s registered Indian entity signs the contract and acts as the legal employer. The client should ask for the entity’s name before signing and check that it appears on the offer letter.

Does an Employer of Record share proof of EPF, ESIC and TDS filings?

A good provider shares monthly proof of EPF and ESIC payment and TDS deposit with the client. EPF and ESIC are due on the 15th of the following month, and salary TDS on the 7th.

Which states can an Employer of Record file in?

Professional tax and Shops and Establishments rules differ by state, so the provider should list the states where it already files. The location of each hire should be shared before the offer is issued.

What does an Employer of Record fee include, and what is charged separately?

The fee starts from $49 per employee per month for the basic package, and the final fee depends on the client’s requirements. Salary, employer statutory contributions, gratuity and any group insurance are paid on top. A written fee list should state any onboarding, exit or currency conversion charge.

How does an Employer of Record apply labour code changes to existing contracts?

The EOR updates contracts and payroll when the rules change, for example wages paid within 2 working days and gratuity after 1 year for fixed term staff. Clients should ask how and when these updates are made.

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