Build your workforce in India through the model that fits your goals, not the model a single provider wants to sell. Gracemark helps you compare recruitment, EOR, AOR, contractor, payroll and market-entry options through one accountable workforce partner.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
Before you hire in India
India carries its own employment rules, statutory costs and termination exposure. Get the wrong setup and it means back-pay, penalties and misclassification claims. Here is the complete snapshot, free, so you can plan before you ever talk to us.
A very large and cost-competitive talent pool with deep IT, engineering and global capability centre capacity in Bengaluru, Hyderabad, Pune and the NCR.
Gracemark recommendation: EOR for first hires; entity or GCC assessment as headcount scales
The figures above are statutory baselines drawn from the sources listed below. Typical market practice in India often sits above the statutory floor, and the right model depends on the role, salary band and engagement type.
Educational workforce-planning information, not legal or tax advice. Requirements and service availability depend on the worker, role, location, compensation and engagement model; Gracemark confirms the current position before engagement.
What to look for
Each of these shifts your cost, timeline and legal exposure. We walk you through all of them, and handle them for you, so nothing turns into a surprise later.
Gracemark supports employment, payroll, benefits and compliance in India, and 100+ countries, through one accountable partner, delivered directly or through vetted in-country partners depending on the market. Model-agnostic guidance, one point of accountability.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
FAQs
To hire in India, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR for first hires; entity or GCC assessment as headcount scales Gracemark handles India employment, payroll, benefits and compliance through one accountable partner.
Employer cost in India is Employer statutory contributions include EPF at 12% of basic plus DA where EPFO applies and ESI at 3.25% of gross wages below the coverage threshold, so total employer cost varies with scheme applicability and wage ceilings. That is on top of gross salary, plus statutory items such as vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in India is There is no single national statutory minimum wage; each state and union territory fixes minimum wages by scheduled employment, so rates vary widely by state and job category. Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in India is Notice and retrenchment compensation depend on state law and the Industrial Disputes Act framework for workmen, with retrenchment compensation generally 15 days' average pay per completed year of service for covered workmen; other staff are governed by contract. Termination complexity is rated high. Getting termination and severance wrong is one of the most expensive mistakes in India, plan it before the first hire.
Statutory annual leave in India is Statutory paid annual leave is set by state Shops and Establishments and Factories legislation and commonly falls in the range of 12 to 15 or more days per year after a qualifying period. Parental leave is 26 wks maternity. Sick leave is Varies by state. Public holidays: State-dependent.
Time to hire in India is typically 1–2 weeks (EOR) through an EOR, versus 3–6+ months to open an entity. That is why most first hires in India go through an EOR.
Misclassification risk in India is rated moderate. Full-time, exclusive, day-to-day contractor arrangements are the most exposed, penalties include back-pay, statutory benefits and fines. Gracemark advises on when a contractor, EOR employee or entity hire is defensible.
Last reviewed: August 13, 2026 · Gracemark Global
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