Hire in India

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Last updated at June 14, 2022
beautiful scenery in the country of india

Currency

Indian Rupee (INR)

Capital

New Delhi

Time Zone

GMT+5:30

Key Country Facts

Introduction

The name India is derived from Indus, which originates from the Old Persian word Hindu. The latter term stems from the Sanskrit word Sindhu, which was the historical local appellation for the Indus River. The ancient Greeks referred to the Indians as Indoi (Ἰνδοί), which translates as “The people of the Indus”. India, officially the Republic of India is a country in South Asia. It is the seventh largest country by area, the second-most populous country (with over 1.3 billion people), and the most populous democracy in the world. It is bounded by the Indian Ocean on the south, the Arabian Sea on the southwest, and the Bay of Bengal on the southeast. It shares land borders with Pakistan to the west; China, Nepal, and Bhutan to the northeast; and Myanmar (Burma) and Bangladesh to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives.

India’s Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia.

New Delhi is the capital of INDIA. There are 29 states and 7 union territories in India. Each state and union territory of India has an administrative, legislative and judicial capital.

Area

  • Land: 2,973,193 sq. km
  • Water: 314,070 sq. km
  • Total: 3,287,263 sq. km

Climate

Indian climate is extremely diverse and is affected by diverse topography.

Religion

  • Hindu 79.8%,
  • Muslim 14.2%
  • Christian 2.3%
  • Sikh 1.7%
  • other and unspecified 2%

Language

English enjoys the status of subsidiary official language and is the most important language for national, political, and commercial communication. Hindi is the most widely spoken language and primary tongue of 41% of the people. There are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit. Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but does not have an official language.

Culture

The Indian culture, often labeled as an amalgamation of several various cultures, spans across the Indian subcontinent and has been influenced and shaped by a history that is several thousand years old. Throughout the history of India, Indian culture has been heavily influenced by Dharmic religions. India is the birthplace of Hinduism, Buddhism, Jainism, Sikhism, and other religions, collectively known as Indian religions.

Indian religions, Hinduism and Buddhism, are the world’s third and fourth-largest religions, respectively, with over two billion followers altogether, and possibly as many as 2.6 billion followers. Followers of Indian religions – Hindus, Sikhs, Jains, and Buddhists make up around 80% population of India.

India HR at a Glance

Employment Law

Matters related to employment in India are primarily governed by the Constitution of India, specific laws framed by Central and State governments, municipal laws, collective and individual agreements as well as judicial precedents. These laws cover an array of issues, which may be general or specific in nature.

Employment Contract

Bespoke by company to company. However, companies may develop a standard template containing the minimum terms and conditions that should become part of the Employment contract.

English-only contract is acceptable, and it is required to mention the Retirement Age (60 years) in the contract.

It is also common for companies to issue a letter of appointment that serves as an employment contract. The letter should include details about the position, responsibilities, salary, starting date, benefits, and regulations for termination. If an employee signs an employment contract with an Indian company, he/she is protected under Indian labour law. The contract has to be made in writing and signed by both parties. It includes the same information as a letter of appointment. The length of the employment, as well as the probation period, should be stated.

Work Rules

It’s not mandatory to get the employment rules registered, however, policies related to leave, notice period, working hours are to be complied with the respective Acts. Generally, companies with headcount of a specific minimum size, e.g. 20 or more, will usually prepare an employee handbook for the purpose of administration and for ensuring all laws are complied with.

Probation Period

Not mandatory. Common practice for multinationals is 3-6 months depending on the seniority of the employee.

During a probation period, an employer can release its employee without giving prior notice and with no legal penalty.

Severance Pay

Gratuity and Leave encashment are payable at the time of termination, irrespective of reason (e.g. termination on retirement, resignation, etc.) Gratuity is applicable only for the employees who serve for more than five years.

Retrenchment compensation is mandatory under Industrial Disputes Act (applicable for industrial workers). In other cases, it is paid on mutually agreed terms.

Payment of Gratuity Act becomes applicable to establishments having 10 employees or more.

Severance pay, apart from the above, is not mandatory. Company may pay additional amount on compassionate grounds. Also, contractual terms needs to be considered.

Paid Leave

Employment contracts generally detail the terms of leave; however, most businesses have a range of 12-24 days of sick leave and casual leave. The Factories Act requires employers to give factory workers one day leave with pay for every 20 days of work (i.e. 18 days of Paid Time Off (PTO) for every 240 working days), and there are other conditions of leave that are covered by the Employees’ State Insurance Act, 1948.

Annual Leave eligibility is dependent on location/state. It varies for each state.

Overtime

May be applicable when working beyond the standard working hours of 8 hours per day (but not necessarily mandatory in all cases)

In MNCs, generally, if employees work beyond normal working hours, they are paid a reimbursement of food and conveyance. Or, companies have policy to pay shift allowance, on call allowance, etc. if employees work on odd hours or on holidays. Mainly those below managerial grade are applicable for overtime.

Notice Period

Employer must give a 30-day notice (or payment in lieu), as per the Industrial Disputes Act. Senior employees may be required to give a 60-day or 90-day notice.

Termination

Generally, if the termination is for a reason other than a justifiable cause, such as non-performance or misconduct, then there should be a mutual agreement to terminate, and the terms of the agreement should be documented. In such cases, there may also be a payment made on account of the termination, like redundancy pay.

It is generally more cumbersome to terminate blue-collar employees in the manufacturing industry, where the matter can go to the trade unions.

It is not very uncommon to terminate employees in other sectors.

Bonus

Statutory bonus is payable as per the Payment of Bonus Act, 1965 and is applicable to establishments employing 20 or more persons. Every employee receiving salary or wages up to INR 21,000/month and who has worked for at least 30 working days in the year is eligible to receive statutory bonus. Minimum bonus payable is at 8.33%, and maximum bonus payable is at 20% of eligible amount and payable within eight months of the end of the accounting year, i.e., before November of every year.

Performance bonus is paid at the discretion of the company. There is no mandatory 13th or 14th month bonus.

Other Standard Items

In India, salary is broken down in various pay elements, as each pay element has specific tax implication. Some pay elements give tax saving opportunity to employees with no additional cost or risk to the company.

Generally, basic salary is fixed – may be 40% to 50% of total salary, though not mandatory. This is because retirement benefits, like provident fund gratuity and leave encashment, are calculated based on basic salary. Company may give option to opt various other tax saving elements as per individual employee’s tax planning.

Provident fund contribution is calculated as a percentage of basic wage, which includes basic pay and dearness allowance.

Statutory Costs

Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organization (EPFO) of India. An establishment with 20 or more workers in any industry should register with the EPFO. Typically 12% of the Basic, Dearness Allowance (DA), and cash value of food allowances must be contributed to the EPF account.

Tax and Social Security

Personal Income Tax

Taxation of individuals in India is primarily based on their residential status in the relevant tax year. The residential status of individuals is determined independently of each tax year and is ascertained based on their physical presence in India during the relevant tax year and past years.

The following types of residential status are envisaged for an individual:

  • Resident in India, which is further divided into the following two categories:
    1. Resident and ordinarily resident (ROR).
    2. Resident but not ordinarily resident (RNOR).

  • Non-resident in India (NR).

Under Indian tax laws, the scope of taxation differs as per the residential status of an individual:

  • RORs are subject to tax in India on their worldwide income, wherever received.
  • RNORs are subject to tax in India only in respect to income that accrues/arises or is deemed to accrue/arise in India, is received, is deemed to be received in India, or is from a business controlled in or a profession set up in India.
  • NRs are subject to tax in India only in respect to income that accrues/arises or is deemed to accrue/arise or is received or deemed to be received in India.
  • RNOR and NR individuals are not subject to tax in respect to their income earned and received outside of India.

Employees will need a Personal Account Number for both withholding and annual filing of an Indian tax return.

Personal Income Tax Rates

The following income tax slab rates are applicable for Year of Assessment 2021/22. Education Cess at 4% shall be levied on the tax computed using the income tax rates given below.

Income Slab (for Individual Taxpayers & HUF up 60 years old) Tax on lower bracket (INR) Tax Rate on Excess (%)
Income up to INR 250,000 No tax
Income from INR 250,001 – INR 500,000 5.0
Income from INR 500,001 – INR 1,000,000 12,500 20.0
Income more than INR 1,000,000 112,500 30.0

The basic exemption limit for resident individuals who are 60 years of age or more but less than 80 years of age at any time during the tax year is INR 300,000. For resident individuals who are 80 years of age or more, it is INR 500,000.

  • Surcharge
    In addition to the income tax, a surcharge of 10% is to be levied, where the total income of individuals exceeds INR 5 million but does not exceed INR 10 million. When the total income of individuals exceeds INR 10 million, the rate of surcharge will be 15%.

 

  • Health and Education Cess
    Health and education Cess at the rate of 4% of the income tax and surcharge (if applicable) will be levied to compute the final tax liability of individuals.

 

  • Tax rebate
    The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.

Surcharge

Surcharge is levied on the amount of income-tax at following rates if the total income of an assessee exceeds specified limits:

Nature of Income Up to Rs. 50 lakh More than Rs.50 lakh but up to Rs. 1 crore More than Rs.1 crore but up to Rs. 2 crore More than Rs.2 crore but up to Rs. 5 crore More than Rs. 5 crore but up to Rs. 10 crore More than Rs. 10 crore
Short-term capital gain covered under Section 111A Nil 10% 15% 15% 15% 15%
Long-term capital gain covered under Section 112A Nil 10% 15% 15% 15% 15%
Any other income Nil 10% 15% 25% 37% 37%

Personal Income Tax Deductions

For the purpose of Income computation, the total taxable income under all heads, after deductions under Chapter VI-A and Section 80C, would be considered. Some examples of deduction allowed under Chapter VI-A & Section 80C at the time of filing of income tax returns are as follows:

  • PPF Account
  • Tax Saving Fixed Deposit
  • Tax Saving Mutual Funds
  • Senior Citizen Savings Scheme
  • National Savings Certificate
  • Contribution to National Pension Scheme
  • Contribution to Pension Funds
  • Payment of Medical Insurance Premium
  • Payment for treatment of specified disease
  • Donations

Example Of Levy of Surcharge on Income Tax

The following examples have been prepared, assuming the taxpayer is an individual, and therefore the Income Tax Slab Rates are applicable:

Particulars Taxpayer A Taxpayer B
Total Taxable Income 4,700,000 5,300,000
Total Tax payable as per Income Tax Slabs 1,222,500 1,402,500
Applicability of Surcharge No Yes
Surcharge at 10%   140,250
Total Tax payable (incl. Surcharge) 1,222,500 1,542,750
Edu Cess at 2% & SHEC at 1% 36,675 46,282
Total tax Payable (after Edu Cess & SHEC) 1,259,175 1,589,033

PIT: Employer Requirements

  • Employers are responsible for withholding tax every month as applicable from employee’s salary and deposit the same amount with the government by the 7th day of the following month.
  • Employers also need to submit quarterly tax statement (Employee-wise salary and tax statement) at the end of each quarter.
  • Based on the quarterly tax statement, employers issue Form 16 (yearly salary and tax statement) to employees at the end of the year.
  • Employees need to submit individual tax returns based on the Form 16 issued by the employer.
  • Form 16 is a yearly salary tax statement issued by employers to employees and consists of part A and part B.
  • Part A is extracted from income tax site (TRACES), and it is a summary of quarterly tax statements submitted by employers.
  • Part B provides all the salary details, taxable perquisites, exemptions and deductions availed by employee, total tax liability and tax deducted by the employer.
  • Form 16 is issued by June 15th every year.

Local Income Taxes

Profession taxes imposed by certain states on individuals are minimal and are first added to the total income and then deductible while calculating taxable income.

Social Security

Employee Provident Fund (EPF) is one of the main platforms of savings in India for nearly all people working in Private sector Organizations. A provident fund is created with a purpose of providing financial security and stability to employees. Generally, one starts contributing to these funds as soon as they get employed. The contributions are made on a monthly basis. Its purpose is to help employees save a fraction of their salary every month, to be used in an event that the employee is temporarily unfit/no longer fit to work or at retirement.

Provident fund department has provided three options to opt for PF Contribution from employer perspective:

1. Restricts Employee & Employer PF contribution to maximum 12% of INR 15,000

2. Restricts Employer PF Contribution maximum to INR 15,000 and deducts Employee PF at Actual

3. No Restriction, 12% of Basic + DA will be contributed by both Employee & Employer.

Thresholds:

Social security (Provident Fund) is applicable when the employee count is 20 or more. If the employee count is less than 20, company can opt for voluntary PF registration if majority of the employees give consent for such registration.

Table below gives the rates of contribution of EPF, EPS, EDLI, and Admin charges in India.

Scheme Name Employee Contribution Employer Contribution
Employee Provident Fund 12% 3.67%
Employee’s Pension Scheme 0 8.33%
Employee Deposit Linked Insurance 0 0.5% (capped at a maximum of INR 15,000)
EPF Administrative charges 0 0.85%
PF Admin charges 0 0.5% of INR 15,000 or of Basic Salary

*The above table serves as a broad guideline. Actual rates charged will differ.

Payment of contributions:

There is a monthly deduction of employee’s contribution from employee’s salary. The amount deducted needs to be remitted to PF authority along with employer’s contribution and admin charges, by the 15th of the following month. Online payment facility is provided by PF authority. The payment needs to be made online as per guidelines given by PF authority.

Set-up and enrollment process:

1. Employer needs to create an online application along with documents, such as address proof, list of board of directors, list of employees with salary details, etc.

2. Upon receiving the application and verification of all documents, PF authority issues a registration certificate, a registration number, and PF sited login details to the employer.

3. Upon receiving the above details, employer needs to generate an ECR (Electronic return) and make an online payment.

Employee State Insurance (ESI)

Registration under Employee State Insurance (ESI) becomes mandatory for manufacturing industries if the employee count is 10 or more, and for other companies, 20 or more.

Employees with monthly salary of INR 21,000 are covered under this benefit. Companies provide health insurance to employees who are not covered under ESI.

Types of Employee Provident Funds

For an employer, there are three ways he can contribute to Provident Fund of his Employees if the number of employees is more than 10:

1. Save an un-exempt fund like the EPF under the EPFO. Un-exempted firms are those that maintain the PF accounts of their workers with the EPFO. There are over five crore active subscribers whose accounts are being managed by the EPFO.

2. Save a company-run exempt fund, EPF Private Trust, recognized by the EPFO and pays at least the same interest as the EPF. EPF Trust must do the duties and responsibilities like the EPFO. EPF Private trusts are formed by firms that manage the money and accounts of the workers themselves and have an exemption from filing PF returns. The members of these trusts enjoy income tax and other benefits at par with EPFO subscribers. Establishments who seek exemptions and create EPF Private Trusts are called exempted establishment. However, the pension is payable only by the EPFO. Companies like TCS or Accenture have their Private PF Trust.

3. Put money in a company-run excluded fund, which is not EPFO-regulated but is set up with approval from the resident income tax commissioner. This type of fund looks after all investments and fund management itself and is self-regulated.

Employees

Salary Payment

Generally paid at the end of the month through bank transfer.

Payslip

Hardcopy; or soft copy (PDF) by email. Online payslips via Employee Self Service (ESS) or customized portal.

Holiday Allowance

Generally, 10 holidays are observed in a year, including three national holidays and others major festival holidays.

Public holidays differ from region to region and range from between four to ten days’ holiday each year.

Workers may be required to work on public holidays. There is no central level legislation in this respect. Different State-level Acts (National and Festival Holidays Act) provide that in circumstances where workers have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the rate of 200% of the normal wage rate. A worker may be provided with twice the wages for working on a public holiday or with a substitute holiday with pay. A worker who is required to work on a rest day must be paid wages at the overtime rates (twice the rate of wages).

Annual Leave

Commencement of leave period is the start of calendar year, i.e. January 1st to December 31st every year. Employment contracts generally detail the terms of leave. The Factories Act requires employers to give all factory workers a one-day leave with pay for every 20 days of work (i.e. 18 days of Paid Time Off (PTO) for every 240 working days), prorated for new joiners and leavers during the year. There are other conditions of leave that are covered by the Employees’ State Insurance Act, 1948. Annual leave is often referred to as earned leave or privilege leave.

Annual leave eligibility varies depending on location/state. Annual leave may be carried over; however, The workers can accumulate earned leave up to a maximum of 45 days.

If the employment contract expires before a worker could take his/her annual leave, compensation for leave is made in proportion to the number of months and numbers of working hours in a week.

Sick Leave

Sick leave is the leave that an employee can avail when he/she is out of work due to illness and can be taken for minimum 0.5 to maximum 7 days (paid).

There is no sick leave carry-forwards or encashment. At the end of calendar year, any available sick leave will lapse automatically.

For all absences exceeding two or three days, depending on company policy, medical certificate usually needs to be enclosed.

Sick leave can be appended with earned leave; new joiners & resigned employees get prorated sick leave.

Workers covered by the Employees’ State Insurance Act, 1948 are entitled to sick pay, but only a small proportion of the organized work force is covered by social security legislation. Amount of sick pay varies; it is around 70% of the average daily wage. The benefit is paid after a 2-day waiting period for up to 91 days in any two consecutive designated 6-month periods.

Different provisions could be located under different Acts:

  • 15 days of sick leave is entitled under Apprentices Act, 1961
  • 30 days of sick leave for 18 months of service under Working Journalist and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
  • At least 1/18th of the period working under Sales Promotion Employees (Conditions of Service) Act, 1976. (http://www.esic.nic.in/benefits.php)

Casual Leave

Casual leave is granted for certain unforeseen situation, or when employee is required to go for one-day to two-day leave to attend to personal matters and not for vacation. In case of casual leave, normally, company’s strict policy is up to a maximum of three days in a month. In such cases, the person has to get the permission in advance.

Casual leave can be taken for minimum 0.5 to maximum three days. In case of more than three days leave, it should be taken as annual leave. If three leaves are taken together, employees need to apply for in advance.

As per the rules under The Shops and Establishment Act, an employee is entitled to 8 (eight) days of casual leave.

There are no casual leave carry-forwards. At the closing day of the year, any unused casual leaves will lapse automatically and are not encashable.

Casual leave cannot be appended with annual leave or sick leave.

Maternity & Parental Leave

Female employees are entitled to 12-26 weeks of maternity leave and can be taken as early as eight weeks prior to delivery. Remaining weeks can be availed post-childbirth. For women who are expecting after having two children, the duration of paid maternity leave shall be 12 weeks (i.e., six weeks prior and six weeks post expected date of delivery). Maternity leave is awarded with full pay on completion of at least 80 days in an establishment in the 12 months prior to her expected date of delivery. Maternity benefit is awarded at the rate of the average daily wage for the period of a worker’s actual absence from work. Apart from 12 weeks of salary, a female worker is entitled to a medical bonus of 3,500 Indian rupees if health benefits are not provided by the employer.

The Act also provides for adoption leave of 12 weeks for a woman who adopts a child under the age of three months. A commissioning mother is also entitled to a 12-week leave from the date the child is handed over to her. A commissioning mother is defined as a “biological mother who uses her egg to create an embryo implanted in any other woman” (the woman who gives birth to the child is called host or surrogate mother).

The Act further requires an employer to inform a woman worker of her rights under the Act at the time of her appointment. The information must be given in writing and in electronic form (email).

While paternity leave is authorized for government employees, there is no law that instructs the private sector to make it obligatory. Hence, paternity leave is open to interpretation by individual companies.

Other Leaves

Some types of leave will vary depending on the industry/sector or state of employment. Some are paid, unpaid or half-paid leaves like Study Leave, Bereavement Leave and Leave for Voting. These are left at the organization’s discretion.

Benefits to the Employee in India

Expatriates

 

Severance Payments

Severance payment is required to be paid by the employer. Severance pay procedure is different in each of the circumstances noted below:

  • Voluntary resignation: If the employee voluntarily resigns (as in the cases of retirement/resignation/absconding/failure to report to work without notice for three consecutive days), then the resignation must be accepted by the employer. Upon the acceptance of the resignation by the employer, the employee must serve a notice period as specified in the employment contract (usually 30 days minimum), unless the same is waived by the employer.
  • Termination initiated by employer: For terminations initiated by the employer for misconduct by the employee, the scope of misconduct should be set out in the employment handbook, policies or employment contract.

An employee is entitled to a payment of gratuity on termination of his/her employment, provided he/she has rendered continuous service for no less than five years (except in the case of death or disability), under certain circumstances. The gratuity payable to an employee is calculated as 15 days’ wages payable, multiplied by the number of years of service (with part of a year in excess of six months counted as one year). The maximum amount of gratuity that an employee is entitled to under the PGA Act is INR 1,000,000. However, there is no restriction on any employer to pay over and above the statutory limit.

Employee Tax Planning

Company may give options to opt other various tax saving elements as per individual employee’s tax planning.

At least PARTIALLY tax-exempt components include:

Standard deduction: INR 50,000 per year

House Rent Allowance (HRA): the amount of rental allowance will be exempted from income tax at the lower of the following:

  • Actual HRA received
  • Rent paid over 10% of Basic salary
  • 50% or 40% of Basic salary (50% in case of Metro and 40% in case of Non-metro cities).

Notably, per diem allowances are not taxable in India if they are reasonable and justifiable, and there is documentation in place. This applies to business expenses incurred by the employee.

Tax saving allowances, specified under section 10 of Income Tax Act of India. Some of the examples are as below:

  • HRA
  • Leave Travel Allowance
  • Children Education/Hostel Allowance

Some reimbursements are tax free perquisites:

  • Car/driver expenses reimbursement
  • Telephone expenses reimbursement
  • Meal coupons
  • Employer contribution to provident fund is tax free up to 12% of Basic salary.

Common items for MNCs to give to their expats are telephone reimbursement, leave travel allowance, meal coupons, and children education/hostel allowance.

Employee’s Pension Scheme (EPS)

EPS of 1995 offers pension on disablement, widow pension, and pension for nominees. EPS program replaced the Family Pension Scheme (FPS). It is financed by diverting 8.33% of employer’s monthly contribution from the EPF (restricted to 8.33% of INR 15,000 annually, so INR 1,250 per month) and government’s contribution of 1.17% of the worker’s monthly wages.

The purpose of the scheme is to provide for:

1. Superannuation Pension: Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years,

2. Retiring Pension: Member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years,

3. Permanent Total Disablement Pension, and

4. Short Service Pension: Member has to render eligible service of more than 10 years but less than 20 years.

An employee can start receiving the pension under EPS only after rendering a minimum service of 10 years and attaining the age of 58/50 years. However, no pension is payable before the age of 50 years. Early pension after 50 years but before the age of 58 years is subject to discounting factor at 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In case of death/disablement, the above restrictions doesn’t apply.

Employee Deposit Linked Insurance Scheme (EDLIS)

Under the EDLIS, life insurance cover is provided to the PF members. The cost of the scheme is borne by the employer, but as the amount of life coverage under this statutory scheme is very low, employers usually opt out of the EDLIS by going for group insurance scheme, which provides higher coverage to employees without any increase in cost to the employer. Premium for the EDLI is entirely funded by the employer, which contributes 0.5% of monthly basic pay (capped at a maximum of INR 15,000) as premium for life cover in case the organization does not have a group insurance scheme for its employees.

The claim amount of the EDLI is decided by the last drawn salary of the employee. The claim amount would be:

  • 30 times the salary. For this calculation, salary is basic pay plus DA, or Dearness Allowance. The upper limit of wage for the EDLI is INR 15,000.
  • Along with this, the bonus of INR 150,000 is also given.
  • Thus, the maximum EDLI claim amount would be INR 600,000 [(30 x 15,000) + 150,000].
  • There is no condition of continuous employment (of one year under current employer) to be eligible for the insurance benefit.

Visas and Foreign Workers

General Requirements

A foreign national will generally apply for an Indian employment visa to the Indian Embassy/High Commission in his country of residence. Following the receipt of a visa, all labour laws regulating employment relationships in India also apply to foreign nationals working in India. Indian legislation recognizes two categories of employee – workmen and non-workmen, with only workmen is covered under the provisions and protections of the Industrial Disputes Act. Broadly, the entitlement to statutory employment rights depends on the category of employee and other factors (such as remuneration, location, and industry).

Type of Visa

India has specific requirements to issue work permits and visas to your staff assigned to work in India, and the primary type is the Employment or ‘E’ visa. This visa is granted for one year, or for the term of the contract in India (up to five years). The E Visa must be applied from the employee’s home country and not from within India.

Public Holidays in 2022

S.No Occasion Date
1. New Year’s Day January 1st
2. Makar Sankranti January 14th
3. Republic Day* January 26th (Mandatory)
4. Holi March 18th
5. Good Friday April 15th
6. Labour Day* May 1st (Mandatory)
7. Eid-ul-Fitar May 3rd
8. Bakrid / Eid ul-Adha July 10th
9. Raksha Bandhan August 11th
10. Independence Day* August 15th (Mandatory)
11. Janmashtami August 19th
12. Mahatma Gandhi Jayanti* October 2nd (Mandatory)
13. Dussehra October 5th
14. Diwali / Deepavali October 24th
15. Guru Nanak’s Birthday November 8th
16. Christmas Day December 25th
  • As a general practice in India, most employers provide 10 public holidays, but the number varies from state to state. For example, in Maharashtra state, the number of public holidays are 8 per calendar year; 4 of which must be the above with “*”.
  • In case if any of the National/Mandatory Holiday falls on the weekend, employees could take other days off in lieu of this from the provided list after mutual consent with the employer.
  • Festival holidays may vary based on each state or religion. Source: https://www.india.gov.in/

     

     

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