Best Employer of Record (EOR) Services in India [2023]

Introduction

Choosing an Employer of Record is a strategic move for businesses aiming for growth without the intricacies of employment management.

Hiring in India has always been attractive for U.S. companies—thanks to the rich talent pool.

Approximately 55% of the worldwide IT outsourcing services are provided by India's IT industry, renowned for its growing contribution to the global tech workforce. With India's booming IT industry and a pool of highly skilled professionals, it's no surprise that the U.S.-based companies are keen on tapping into this talent. 

Navigating the complexities of Indian labor laws or dealing with foreign taxes can be overwhelming. That's why partnering with a reliable EOR service in India is not just a smart move; it's practically a necessity. This article aims to provide you with all the information you need to make an informed decision with choosing the right EOR. We'll compare the top EOR service providers in India so you can choose the best fit for your company and do what you do the best - run your business.

Top 5 EOR Service Providers in India

1. Wisemonk

Wisemonk is the most value focussed strategic partner for your company in global talent acquisition and management. It offers a more affordable solution compared to other options, including setting up your own entity. Their transparent pricing starting at just $150 per employee per month makes them accessible for even small to medium-sized businesses while providing a range of features usually reserved for high-ticket EORs. 

Cost Effective

• Wisemonk is highly optimised as it allows for unlimited international payments to contractors at Industry lowest FX markup (<0.6%)
• Example- Let’s say you have a team size of 2 employees in India and the average salary per employee is 30,000 USD. 

Total amount of salary to be disbursed- 2 x 3,0000 = 60,000 USD

If your chosen EOR provides a 3% markup on foreign exchange, that amount will be 1800 USD,Whereas with Wismonk’s FX markup of 0.6%, the additional amount the company has to pay will just be 360 USD.

In this way Wisemonk provides value to the company by saving almost 150 USD per month for a company with a team size of 2 in India.

• Provides unlimited expense reimbursements or bonus payouts with no additional cost.
• Zero interest lease (3 years) for new equipment procurement and also assists in retrieving equipment at the time of exit and wipe devices before re-allocation.
• Wisemonk is also a backend partner to some of the leading payroll service providers, directly connecting the company to the best available services at the lowest costs.

Native to India

• Besides cost-effectiveness, Wisemonk also excels in providing localized expertise. Being native to India, the founders understand the Indian market intricately, allowing them to offer tailor-made solutions that can be a huge asset for U.S.-based companies looking to hire in India
• Supports employees with health insurance, benefits and bank loans along with 24/7 support to both employers and employees.
• Wisemonk can also take the reins of your talent acquisition, assisting global managers looking to expand into the Indian market in identifying and hiring top-tier talent.

Limitations

• Wisemonk excels in localised expertise. However, for companies looking to expand globally beyond India, this could be a limitation.
• Limitation in customized plans for companies that may have special requirements.

Wisemonk is designed to cater to businesses of all sizes, whether you are looking to onboard a single employee in India or set up a team across multiple countries. So if you're looking for an EOR that combines cost-effectiveness with local expertise, robust features, and high-quality 24/7 support, Wisemonk should be at the top of your list.

2. Deel

Deel is a California based company through the us of its locally owned entities and internal back office, businesses are able to facilitate global payroll. The cutting-edge self-serve interface of Deel allows employees, supervisors, and leaders to update withdrawal details, view team composition, monitor payroll expenditures, and perform a host of other functions. 

Key Features

• Deel offers useful immigration support, it has an in-house team of immigration experts who handle everything, making the visa process easier than ever for global teams.
• Deel has over 200 local HR and legal experts globally along with their local entities, ensuring that you never fall foul of regional employment laws.
• Deel has by far the most experienced and helps over 20,000 clients, ranging from small and medium-sized businesses to publicly traded corporations, helping over 120,000 workers get paid from anywhere.
• Deel has its own entities in 100+ countries and operates via partners for 50+ countries.
• Users benefit from 24/7 in-app assistance and a swift onboarding process, typically taking only 2-3 days with self-service approach that empowers users to quickly dive into its features.

Limitations

• Deel provides elevated FX markups, which can quickly add up and affect your bottom line, especially if you're making multiple international transactions.
• The system has been known to generate errors during the financial reconciliation process, requiring additional time and resources to correct and align financial records.
• Due to its expensive pricing model, this solution is best suited for large enterprises or companies looking to hire from countries with complex labor laws and regulations.
• Deel imposes a $5 fee per payout, which can accumulate over time and impact cost-effectiveness, particularly for businesses handling frequent payouts. Also certain advanced features cost extra, including onboarding automation

Price structure

Employee: Starting at $599 per month per employee

Contractor: Starting at $49 per month per employee

While the platform is well-suited for larger enterprises, especially those navigating complicated international labor laws, it might not be the best fit for smaller businesses or those mindful of additional costs. Nevertheless, for organizations that require an all-in-one solution with around-the-clock support and extensive integration capabilities, Deel certainly merits strong consideration.

3. Papaya Global

HQ based in New York, Papaya Global provides EOR services in more than 160 nations, it also provides workforce management, hiring, onboarding, multi-currency payments, and benefits administration solutions. Papaya Global can handle payroll and HR functions for your whole business, including independent contractors and employees and currently helps over 500 clients.

Key Features: 

• Papaya Global offers a range of payment options, including multi-currency payments and even cryptocurrency. This feature gives you flexibility in how you compensate your international team.
• Those purchasing EOR and Payroll solutions will have dedicated experts working in country-specific time zones to provide local expertise regarding employment and payroll.
• Papaya Global works via multiple partners rather than having their own entities in each country
• Papaya Global ha one of the best global expertise which goes from top to bottom: from its CEO's industry expertise, in-house Center of Excellence and global local partners 

Limitations

• Papaya Global’s EOR service is suited for large enterprise companies rather than small businesses (or bootstrapped startups)-  as the price starts from $770 a month per employee.
• Papaya provides elevated FX markups, which can quickly add up and affect your bottom line, especially if you're making multiple international transactions.
• Massive update of employees personal data gets cumbersome as users need to request a specific file to make the update.
• Lacking local entities for which some businesses may find the platform less cost-effective, as its BI analytics reports and immigration services require extra fees.

Papaya Global stands out as a comprehensive EOR and HR solution, especially well-suited for large enterprises operating on a global scale. With an expansive footprint in over 160 countries and the ability to integrate seamlessly with various business systems, it offers a versatile platform for international workforce management. The prospective clients should weigh the above factors carefully when considering Papaya Global as their EOR partner.

4. Oyster

Oyster makes international hiring as simple as it should be. Operating in over 180 countries, Oyster has eliminated the need for multiple service providers, making it a one-stop-shop for your international employment needs. Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce.

Key Features: 

• Oyster's Employee Cost Calculator quickly estimates the cost of hiring in different countries, saving you hours of research and potentially thousands of dollars in miscalculations.
• Non-profits get to hire their first full-time team member for free for a year. You can hire refugees in countries where Oyster has direct entities at no or discounted cost.
• Offers a free plan that includes Oyster Academy and distributed HR tools (cost calculator, contractor assessment, legal starter pack, etc.).
• Smooth onboarding and offboarding with helpful guidance from lawyers and accountants regarding the labor laws in your hiring countries and Doesn’t charge extra fees for setup or cancellation.

Limitations

• There is currently no phone support for immediate communication and dedicated account managers are also limited to the highest-tier plans.
• You must pay for local benefit plans as add-ons, which cost $80 per month or more. Also payments in local currencies are often delayed.
• Oyster isn't as integration-friendly as some other EOR solutions, so you may struggle to incorporate it into your existing tech stack for managing your global workforce.
• There’s a refundable security deposit required to initiate the engagement.

Price structure

Employee: Starting from $499 per employee per month
Contractor: Starting from $29 per contractor per month

5. Rippling

Based out of California, Rippling EOR Software allows you to hire anywhere in the world by serving as the legal employer of your new hires—so you don’t have to establish your own legal entity in every country where you do business. Rippling EOR is built on top of our native HRIS, so when you're ready to scale up and establish your own local entity, transitioning your employees to your own entity takes just minutes.

Key features:

• Instead of outsourcing payroll to global vendors, Rippling’s payroll engine processes it natively, leading to faster processing times and more flexibility.
• Best suited for small and medium sized businesses looking for a comprehensive solution and are willing to commit to an all-inclusive HRIS system not just an EOR.
• Local HR advisors for topics like immigration, performance improvement plans, termination, complaints, and several kinds of leave (parental, sick, unpaid, etc.). 
• Manage human resources, IT, and finance in one unified system for global employment with Integration of over 500 third-party apps like Slack, Office 365, T Sheets, and Quickbooks

Limitations

• Rippling as an EOR or Global Payroll suite is only available as part of a comprehensive package, and cannot be purchased separately i.e. businesses interested in using the Rippling system will need to commit to the entire Rippling HRIS.
• Cost and complexity of the platform may outweigh the benefits. Rippling also provides elevated FX markups, which can quickly add up and affect your bottom line, especially if you're making multiple international transactions.
• Dedicated support isn’t available 24/7.
• Premium features aren't available worldwide.

Rippling offers a robust and comprehensive EOR solution integrated with its native HRIS, making it a one-stop shop for all your HR needs. However, the platform's all-or-nothing approach can be limiting for some businesses, particularly smaller ones that might find the cost and complexity overwhelming. If you're looking for a comprehensive solution and are willing to commit to an all-inclusive HRIS system, Rippling is a compelling option that streamlines multiple aspects of global employment.

How to find the Best Employer of Record Service for you in India

Choosing the right Employer of Record (EOR) service provider can be a game-changing decision for your company, especially if you're planning to expand your workforce into India. The key lies in assessing your unique needs and finding a provider who can best address those while offering value for money.

Key Points to Consider:

• Cost: Make sure to compare pricing plans, setup fees, and any other hidden costs.
• Coverage: Ensure the EOR has a solid footing in the country where you plan to hire.
• Compliance: Look for providers who offer local legal and HR expertise to keep you compliant.
• Currency and Payment: Consider the FX markup and the ease of making international payments.
• Onboarding and Support: A quick and seamless onboarding process can save both time and hassle.
• Integration: Check if the EOR solution integrates with your current HR and accounting software.
• Local Expertise: Native or localized knowledge can be invaluable, especially in diverse markets like India.
• Benefits: Make sure the EOR provides employee benefits, insurance, and support.
• Customer Support: 24/7 support can be crucial when dealing with international time zones.

Comprehensive Features Table

Conclusion:

Why navigate the complexities alone when you can have an expert by your side? It's a strategic move for businesses looking to hire in India without getting entangled in legal and bureaucratic red tape. Read our Comprehensive guide for EOR Service Provides in India.

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At Wisemonk, we understand the intricacies of international hiring in India, ensuring swift, compliant, and hassle-free global teams. Leave the hassle of entity establishment and focus on what you do best—running your business. Please reach out to us, and we will be happy to assist you.

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FAQs

What is an Employer of Record (EOR)?

An Employer of Record is a third-party organization that takes on the legal responsibilities of employment, allowing your company to hire employees without establishing a local entity in the foreign country. The EOR takes care of all the local labor law compliance, tax, and payroll matters, so you can focus on your business operations. Refer to our Comprehensive guide on EOR Service providers in India.

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How does EOR differ from a PEO (Professional Employer Organization)?

An EOR becomes the legal employer of the hired individual on paper, handling all employment-related responsibilities. In contrast, a PEO co-employs the worker, meaning both the PEO and the client company share employment responsibilities. This difference impacts how taxes, liabilities, and employee benefits are managed. Also Eefer to our blog on EOR vs PEO

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Is it expensive to use EOR services? 

When evaluating the costs of EOR services, companies should consider both immediate expenses and long-term savings. While there may be service fees associated with EORs, these often pale in comparison to the potential legal fines, administrative burdens, and overheads of setting up and running a subsidiary in a foreign country. Moreover, the expertise and networks of EORs can lead to faster, more efficient hiring processes, further contributing to cost savings.