Hire in India

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Last updated at September 07, 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, originating from the old Persian word Hindu. The latter term stems from the Sanskrit word Sindhu, the historical local appellation for the Indus River. The ancient Greeks referred to 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 bound by the Indian Ocean to the south, the Arabian Sea to the southwest and the Bay of Bengal on the southeast. India shares land borders with Pakistan to the west and China, Nepal, and Bhutan to the northeast. Myanmar (Burma) and Bangladesh are to the east. Adjacent to 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 hosts an administrative, legislative and judicial capital.

Area

Land: 2,973,193 square kilometers

Water: 314,070 square kilometers

Total: 3,287,263 sq. kilometers

Climate

India’s climate is extremely diverse, affected by the country’s diverse topography.

Religion

Hindu: 79.8%,

Muslim: 14.2%

Christian: 2.3%

Sikh: 1.7%

Other and unspecified: 2%

Language

English enjoys the status as a subsidiary official language and is the most important language for national, political and commercial communication. Hindi is the most widely spoken language and the primary tongue of 41% of the population. There are 14 other official languages recognized in India: 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 status as an official language.

Culture

Indian culture, often labeled as a blend of several various cultures, spans across the Indian subcontinent and has been influenced by a rich history that is several thousand years old. Throughout the country’s history, Indian culture has been heavily influenced by Dharmic religions. India is known as the birthplace of Hinduism, Buddhism, Jainism, Sikhism and other religions. These are collectively known as Indian religions.

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

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 agreements, individual contracts and judicial precedents. These laws and provisions cover an array of issues, which may be general or specific in nature.

Employment Contract

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

An English-only contract is acceptable. The Retirement Age (60 years) must be stated 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 or he is protected under Indian labor law. The contract must be concluded 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 is not mandatory to have company employment rules registered in India. However, policies related to leave, notice period and 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 ensuring all laws are complied with.

Probation Period

Probation periods are not mandatory in India. The common practice for multinational companies (MNCs) is three to six 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 employees who serve for more than five years.

Retrenchment compensation is mandatory under the Industrial Disputes Act, applying to industrial workers). In other cases, it is paid on mutually agreed terms.

The Payment of Gratuity Act applies to establishments having 10 employees or more.

Severance pay, apart from the above, is not mandatory. Companies may pay additional amounts on compassionate grounds. Moreover, contractual terms need 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 (e.g.. 18 days of paid time off for every 240 working days) and there are other conditions of leave covered by the Employees’ State Insurance Act, 1948.

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

Overtime

Overtime may be applicable when working beyond the standard working hours of eight hours per day. Overtime pay is 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 a policy to pay shift allowances or on-call allowances if employees work on odd hours or on holidays. Those below the managerial level are typically eligible for overtime.

Notice Period

Employers must provide 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. The terms of the agreement should be documented. In such cases, there may also be a payment made on account of the termination, such as redundancy pay.

It is generally more cumbersome to terminate blue-collar employees in the manufacturing industry, as the matter can go to the trade unions. It is not uncommon to terminate employees in other sectors.

Bonus

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

A performance bonus can be paid at the discretion of the company. There is no mandatory 13th or 14th month bonus in India.

Other Standard Items

In India, salary is broken down into various pay elements, as each pay element has specific tax implications. Some pay elements offer tax saving opportunities to employees with no additional costs or risks to the company.

Generally, the basic salary is fixed (e.g. 40% to 50% of total salary) though no mandatory proportion exists. This is because retirement benefits, like provident fund gratuity and leave encashment, are calculated based on the basic salary. The company may give the option to choose various other tax saving elements as per the individual employee’s tax planning.

Provident fund contribution is calculated as a percentage of the employee’s basic wage, which includes basic pay as well as dearness allowance (DA).

Statutory Costs

The 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

The 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 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  it is received.
  • RNORs are subject to tax in India only in respect to income that accrues (or arises) or is deemed to accrue/arise in India, is received in India, is deemed to be received in India, is from a business controlled in India or  is from 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) 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 withholding purposes and the 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, the designated amount is INR 500,000.

  • Surcharge

In addition to the income tax, a surcharge of 10% is to be levied in cases 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 

A 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 INR 5 million. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less.

Surcharge

A 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 – will 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. They must deposit the same amount with the government by the seventh day of the following month.
  • Employers must also submit quarterly tax statements (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 must 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. It is composed of part A and part B. 
  • Part A is extracted from the income tax site (TRACES). It is a summary of quarterly tax statements submitted by employers. 
  • Part B provides all the salary details, taxable perquisites, exemptions, deductions, total tax liability and taxes deducted by the employer.
  • Form 16 is issued by June 15 each year.

Local Income Taxes

Profession taxes are imposed by certain states on individuals. Minimal in amount, they are first added to the total income and then deemed deductible in calculating taxable income.

Social Security

The 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 for the purpose of bringing financial security and stability to employees. Generally, one starts contributing to these funds as soon as they are employed. The contributions are made on a monthly basis. Its purpose is to help employees save a fraction of their salary every month, which is to be used in the event of retirement (or if the employee becomes unfit to work temporarily or permanently). 

Provident fund department has provided three contribution options to choose from:

  1. Restricts employee and employer provident fund contribution to maximum 12% of INR 15,000
  2. Restricts employer provident fund contribution maximum to INR 15,000 and deducts employee provident at actual
  3. No Restriction, 12% of Basic + DA will be contributed by both employee and employer

Thresholds:

Social security (provident fund) applies when the employee count is 20 or more. If the employee count is less than 20, the company can opt for voluntary provident fund registration if the majority of the employees grant consent for such registration.

Table below gives the rates of contribution of EPF, EPS, EDLI and administrative 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 by GoGlobal will differ.

Payment of contributions:

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

Set-up and enrollment process:

  1. The employer must create an online application along with documents, such as address proof, list of board of directors, list of employees, salary details, etc.
  2. Upon receiving the application and verification of all documents, the provident fund authority issues a registration certificate, a registration number and website login details to the employer.
  3. Upon receiving the above details, the employer needs to generate an ECR (Electronic return) and make an online payment.

Employee State Insurance (ESI)

Registration under Employee State Insurance (ESI) is mandatory in the manufacturing industry if the employee count is 10 or more. For other companies, this applies to employers with headcounts of 20 or more. Employees with a 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

There are three ways an employer can contribute to the provident fund of employees if the number of employees is more than 10:

  1. Maintain 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. Maintain a company-run exempt fund, EPF Private Trust, recognized by the EPFO and paying at least the same interest as the EPF: The EPF Trust performs the same duties and responsibilities as the EPFO. EPF Private trusts are formed by firms that manage the money and accounts of the workers themselve. They are exempt from filing provident fund returns. The members of these trusts enjoy income tax and other benefits on par with EPFO subscribers. Companies who seek exemptions and create EPF Private Trusts are called exempted establishments. However, the pension is then only payable by the EPFO. Companies like TCS or Accenture have their private provident fund 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

Salaries in India are generally paid at the end of the month via bank transfer.

Payslip

Payslips are provided as a hardcopy or a soft copy (PDF) by email. Online payslips are often provided via an employee self service (ESS) platform or customized portal.

Holiday Allowance

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

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

Workers can be required to work on public holidays. There is no central level legislation restricting this practice. Different state-level acts (e.g. 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. Employees 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, meaning twice the rate of normal wages.a

Annual Leave

The commencement of the leave period is the start of the calendar year. Employment contracts generally detail the terms of leave. The Factories Act requires employers to provide all factory workers with a one-day leave with pay for every 20 days of work (e.g. 18 days of paid time off for every 240 working days). This is prorated for new joiners and leavers during the year. There are other conditions of leave covered by the Employees’ State Insurance Act, 1948. Annual leave is often referred to in India as earned leave or privilege leave.

Annual leave eligibility varies depending on location. Annual leave may be carried over but workers can accumulate earned leave up to a maximum of 45 days.

If the employment contract expires before a worker takes his or 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 an employee can apply when he or she is out of work due to illness. This can be taken for a minimum of a half day to a maximum of seven days. This is paid. 

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

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

Sick leave can be appended with earned leave. New joiners and resigned employees are entitled to prorated sick leave.

Workers covered by the Employees’ State Insurance Act, 1948 are entitled to sick pay. However, only a small proportion of the organized workforce is covered by social security legislation. The amount of sick pay varies and is usually around 70% of the average daily wage. The benefit is paid after a two-day waiting period for up to 91 days in any two consecutive designated six-month periods.

Different provisions are provided under different acts:

  • 15 days of sick leave is provided for by Apprentices Act, 1961
  • 30 days of sick leave for 18 months of service is outlined under the 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 situations or when an employee is required to go take a one-day or two-day leave to attend to personal matters (not for vacation). In case of casual leave, normally, a company’s strict policy is up to a maximum of three days in a month. In such cases, the person must obtain permission in advance.

Casual leave can be taken for a minimum of a half day to a maximum of three days. In cases of more than three days leave, it should be taken as annual leave. If three leaves are taken together, employees must obtain advance permission. 

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

There are no casual leave carry-forwards. At the close of the year, any unused casual leaves will lapse automatically. This is 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 taken post-childbirth. For women who are expecting after having two children, the duration of paid maternity can be 12 weeks (e.g., six weeks prior and six weeks post expected date of delivery). Maternity leave is compensated with full pay upon the completion of at least 80 days with an employer in the 12 months prior to her expected date of delivery. The maternity benefit is compensated at the rate of the average daily wage for the period of the employee’s actual absence from work. Apart from 12 weeks of salary, a female worker is entitled to a medical bonus of INR 3,500 if health benefits are not provided by the employer.

The Act also stipulates adoption leave of 12 weeks for a woman who adopts a child under the age of three months. A commissioning mother also gains the right 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 offers her egg to create an embryo implanted in another woman. The woman who gives birth is called the host or surrogate mother. 

An employer must also inform a female worker of her rights under the Act at the time of her appointment. The information must be concluded in writing and in electronic form (email).

While paternity leave is offered to government employees, there is no law making it mandatory in the private sector. Therefore, paternity leave is offered at the company’s discretion.

Other Leaves

Some types of leave vary depending on the industry or state of employment. Some are paid, unpaid or half-paid leaves (e.g. 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. The severance payment 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 or 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 or her employment. This applies when the employee 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. A part of the year in excess of six months will be 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

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

Components that are at least partially tax-exempt 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 benefits for MNCs to give to their expats include 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. The EPS program replaced the Family Pension Scheme (FPS). It is financed by diverting 8.33% of the employer’s monthly contribution from the EPF (restricted to 8.33% of INR 15,000 annually which means 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: This applies to a member who has rendered eligible service of 20 years and retires on attaining the age of 58 years,
  2. Retiring Pension: This applies to a 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
  4. Short Service Pension: This applies to a member who has rendered eligible service of more than 10 years but less than 20 years.

An employee can begin receiving the pension under EPS only after they render a minimum service of 10 years and reach  the age of 58 or 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 a discounting factor at 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In the case of death or disablement, the above restrictions do not apply.

Employee Deposit Linked Insurance Scheme (EDLIS)

Under the EDLIS, life insurance cover is provided to the provident fund members. The cost of the scheme is borne by the employer. Because the amount of life coverage under this statutory scheme is very low, employers usually opt out of the EDLIS by going for a group insurance scheme. This 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 will be determined 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 Dearness Allowance (DA). The upper limit of wage for the EDLI is INR 15,000. 
  • Along with this, the bonus of INR 150,000 is also provided.
  • 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 with the Indian Embassy or High Commission in his country of residence. Following the receipt of a visa, India’s labor laws regulating employment relationships also apply to foreign nationals working in India. Indian legislation recognizes two categories of employee – workmen and non-workmen. Only workmen are covered under the provisions and protections set out by 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 staff assigned to work in India. The primary type is called 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 Maharastra state where GoGlobal is located, 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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