Employer of records solution in India
With approximately 3 trillion US dollars in GDP (5th in the world) and perfect strategic alignment with Europe between China and the USA, India has become essential. However, numerous operational difficulties remain.
To be present in this market – commercially or technically – the salary portage solution is by far the most flexible, the least risky and the least expensive; especially since the abundance of local talent and mastery of English greatly facilitate recruitment.
With 1.3 billion inhabitants, India has a domestic market with great potential. It is a very dynamic region for business with a workforce whose skill level is increasingly high, which attracts many foreign companies. If you decide to set up in India, this requires creating a legal entity. However, it is more efficient to opt for salary portage rather than creating a subsidiary type entity. One of the recurring problems in India is that of compliance with local legislation which can constitute an obstacle to your establishment. Indeed, on the one hand, labor laws are not uniform throughout the country and on the other hand, they are often perceived as complex. Therefore, given the level of uncertainty in this market, salary portage presents itself as the ideal solution for hiring your local or foreign employees in India.
Why choose employer of record (EOR) in India?
Salary portage in India has many advantages, notably that of being a guarantee of flexibility. Indeed, India currently constitutes a relatively new market for many companies seeking to establish themselves there. In this context, through salary portage in India, Salveo takes care of all the issues relating to compliance with employment laws and regulations, which makes your development in this market faster and safer. You can therefore concentrate on your core business: you do not need to hire a local accountant or a lawyer to assist you in the drafting and management of local contracts, nor do you need to manage a subsidiary with all the hidden costs that this entails. can induce.
Furthermore, this solution is a modality, particularly in the first phases of your development in India, to have a local presence to support the development of your activity.
Any internationalization involves risks. However, freelance administration is a fast, flexible and legal way of saving time and money (savings on expansion costs). Indeed, this solution allows you to enter the market without having to create your own legal entity, a costly and tedious process.
Finally, salary portage will give you credibility on the Indian market and your presence will be reassuring for your customers who will be able to contact your local team at any time.
Salveo's added value for your freelance administration services
So, as you have seen, the major issue in India is above all that of compliance. Indeed, labor laws being complex and highly variable from one region or sector to another increases the level of uncertainty and the risk of making errors. Furthermore, this legal complexity is coupled with a cultural difficulty because there are nearly 22 official languages in India according to the Indian Constitution. Indeed, two are national (Hindi and English) while the others are regional.
In this context, you can count on the support and expertise of Salveo teams in your payroll operation. Indeed, due to our local presence for almost 20 years in New Delhi and Mumbai, we are responsible for hiring your future employees (local or foreign) in India on behalf of your company. The solutions we offer are both flexible and effective, to meet all your global human resources management needs.
Concretely, we manage for you:
- The employment contract of your collaborator, of whom we are the local employer.
- We pay their salary according to local customs and ensure social management with all relevant organizations.
- Cost management
- Monitoring paid leave
- Tax compliance
- Obtaining a visa and social coverage,
- The management of contract termination.
Other optional services are also available, such as assistance in identifyingcoworking spaces or family needs management.
With the support of Salveo, employer of record (EOR) will be your best asset for penetrating this market, thanks to the outsourcing of all your administrative constraints and the support of one of our collaborators dedicated to your project.
In addition, the Salveo India teams are experts in their market and will be able to help your employees in target identification and prospecting upon first request.
Employer of record (EOR) in India: factors to consider
- The work contract
It should be noted that in India there is no need to draw up an employment contract. However, it is recommended to do so in order to avoid any form of ambiguity. In its written form, certain elements must be mentioned such as the employee’s position, remuneration (taking into account benefits such as bonuses), working hours or even paid leave for example. When it comes to salary, it is necessary to use the local currency, namely the Indian Rupee (INR).
Just as in France, we can distinguish two types of employment contracts:
– Limited time
– Unlimited duration
Employees are generally subject to a trial period lasting 3 and 6 months depending on the contract.
Concerning the end of the employment contract, the notice periods to be respected are generally between 15 and 30 days. Only employees who have at least 5 years of seniority in the company are entitled to severance pay.
- Regulations on working hours and minimum working age
In India, working hours can vary from one sector to another. The legal duration of working time is a maximum of 48 hours per week, which corresponds to 8 to 9 hours of work per day.
Concerning weekly rest days, the legal working week is 6 days but generally, Saturday and Sunday are not worked days, this will depend on the company.
The Minimum Working Age, Child Labor Legislation of 1986 provides for the prohibition of child labor. The legal age for working is generally set at 14 years.
- Paid vacations
Paid leave, too, varies from state to state. Indeed, each state has its own leave policy that must be taken into account before your company defines its own. In total, paid leave days can vary between 15 and 30 days per year.
- Minimum wage
In 2022, India’s national minimum wage is 190 Indian rupees (INR). However, the minimum wage in force varies depending on the region, the sector of action or even according to skill levels. Depending on your needs, to obtain more details on salaries, contact us.
- Retirement
Finally, regarding the retirement age, it is set at 60 years but there are early retirement programs.
Focus on special economic zones in India (SEZ)
Discover the special economic zones in India. These are areas where economic laws are more liberal. They represent another opportunity to establish yourself in India, our local team supports you in recruiting employees in these special economic zones.
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