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Payroll in India

Payroll in India runs in INR on a monthly, with wages typically paid by the 7th to 10th of the following month cycle, with statutory employer contributions and a statutory bonus of 8.33% to 20% of wages applies to eligible employees under the payment of bonus act in establishments with 20 or more workers below a wage ceiling; there is no universal 13th-month obligation. Gracemark operates it end-to-end, humans, not tickets.

Currency
INR, Indian rupee
Payroll cycle
Monthly, with wages typically paid by the 7th to 10th of the following month
Working week
Around 48 hours per week depending on the applicable state Factories or Shops and Establishments Act, with overtime generally paid at double the ordinary wage rate
Minimum wage
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
13th-month
A statutory bonus of 8.33% to 20% of wages applies to eligible employees under the Payment of Bonus Act in establishments with 20 or more workers below a wage ceiling; there is no universal 13th-month obligation
Employer cost
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
Probation
There is no single central statutory cap for most sectors; probation is commonly 3 to 6 months, set by policy and state rules
Notice period
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

Two ways to run payroll in India

Own-entity payroll

For long-term presence in India. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Southern Asia time.

EOR-run payroll

No entity in India? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1–2 weeks (eor), no local incorporation.

Compliance essentials in India

  • Provident Fund (PF) and ESI are the core statutory contributions
  • Notice periods of 1–3 months are culturally expected
  • 26-week maternity leave is among the world's most generous
  • New labour codes are consolidating and changing rules
  • Vast, English-fluent engineering and services talent at scale

Get a payroll quote for India

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

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Deeper guide
Hiring guide: India →
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