Hire and expand your team in India quickly, without the need to set up a legal entity. Wisemonk handles payroll, compliance, taxes, and employee benefits, backed by unmatched local talent expertise to ensure your success.
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Trusted by 500+ Global Companies
Consistently Rated Highly Across Review Platforms
Everything you need to successfully build your team in India
End-to-end Platform
Automated onboarding, HR, and payroll—all in one place.
Robust employment and tax law compliance
Full Legal and Tax Assurance
India based dedicated HR expertise
Local HR Support for Smooth Operations
WHY CHOOSE US?
Personalizable Employee Benefits
We go beyond basic offerings with customizable health, wellness, flexible allowances, and development benefits. Our platform helps you tailor packages to attract and retain top talent.
We maximize employee net earnings with tax-efficient benefit plans. Through government-approved savings and flexible allowances, we ensure your team enjoys a greater share of take-home pay.
India-Based Dedicated HRBP
We offer a dedicated HR business partner with strong local expertise, providing seamless support and guidance to ensure smooth, efficient operations for your team in India.
Our Core Focus
Great Employee Experience
We foster strong connections and motivation by nurturing a supportive, inclusive environment. Our approach empowers employees to feel valued, engaged, and inspired to contribute their best every day.
Integrations
Seamless integration with your workflow and processes
What Our Customers Say
Founders, Leaders and HR heads of fast growing startups across US, Europe, SEA and Oceania love our services
The Wisemonk team played a key role in helping us hire for specialized B2B SaaS marketing skills. We were able to build the team within four months, and hire experienced professionals from Tier 1/major B2B SaaS brands. This includes SEO, digital marketing, business development, product marketing, content marketing, and GTM roles. They are a great partner providing integrated services for EOR and recruitment/hiring and I’d recommend them to any B2B SaaS vendor.
Saurabh Sharma
Chief Marketing Officer at Onereach
Working with the Wisemonk team in India has been a genuinely positive experience from day one. They've been consistently accessible and are building fantastic relationships with our local team. As someone based in the UK, I value the quality of compliance Wisemonk brings — I have full confidence when it comes to financial, legal, and HR matters. They've ensured our team is managed in line with local employment law and have also been flexible when we've wanted to go beyond statutory requirements. Whether it's increasing annual leave or tailoring health insurance, they've offered clear guidance to help us enhance the benefits we provide. It's been a great partnership.
Lisa Jones
Chief People Officer at Couch Health
Wisemonk is a key partner for EOM-Energy O&M Services, playing an essential role in supporting our operations. Their seamless payment solutions make transactions not only simple and fast but also reliable. The team’s responsiveness, professionalism, and proactive approach give us complete confidence in every interaction. We look forward to strengthening our collaboration, using Wisemonk both for Employer of Record services and for recruitment support, to help us expand our team in India in the short and medium term.
José Enrique Montero Pérez
CEO at Couch Health
Process was professional & very smooth. We've worked with Wisemonk to source developers in India and it's worked incredibly well for us. We are very pleased with the talent of the developers and the Wisemonk process was professional and very smooth. We highly recommend using Wisemonk for talent sourcing!
Gear Fisher
Co-founder at Onform
I'm very Happy that I discovered Wisemonk. They have been a pure pleasure to work with, and their attention to detail is impressive. They helped us understand their pricing model, find top-qualified individuals, interview them, and then onboard them. I gave them criteria for the type of people we sought, and they delivered. The individuals they were able to find have been some of the best engineers I have ever worked with. I recommend Wisemonk to anyone who is in need of staffing assistance.
Dan Sampson
Head of Engineering at Cobu
I highly recommend them. Wisemonk helped us tap into the vibrant and top-notch Indian talent market and hire our first couple of founding engineers in record time. We've been able to accelerate our roadmap and deliver terrific value to our customers thanks to Wisemonk's efforts. They are easy to work with and very transparent about the process. I highly recommend them to any company looking for talent located in India.
What is an Employer of Record in India?[toc=What is an EOR]
An Employer of Record (EOR) in India is a third-party company that legally hires employees on behalf of another business, allowing that business to operate in India without setting up a local entity. The EOR handles all legal responsibilities, including payroll, taxes, benefits, and compliance with India's complex labor laws. This simplifies international expansion by letting foreign companies hire local talent quickly while minimizing legal and compliance risks.
How an EOR in India works?[toc=How EOR Works in India]
An Employer of Record (EOR) in India helps foreign companies hire and manage employees in compliance with local labor laws without needing to set up a local entity.
India EOR hiring process showing two-step job offer process: client company's job offer letter and then Wisemonk's formal employment letter for compliant hiring
Here’s a breakdown of how an EOR in India works:
1. Hiring and Employment Contracts
An EOR handles all aspects of hiring in India, ensuring compliance with Indian labor laws.
This includes:
Drafting and managing employment contracts: The EOR ensures that contracts are aligned with local employment regulations such as the Indian Contract Act and Minimum Wages Act.
Legally employing workers: While your company remains in charge of day-to-day employee tasks, the EOR becomes the legal employer.
The EOR ensures that all payroll-related processes are handled accurately and in compliance with Indian tax laws:
Salary disbursement: The EOR manages the payroll processing and ensures employees are paid on time.
Tax withholding and compliance: The EOR calculates and withholds TDS (Tax Deducted at Source), ensuring compliance with the Income Tax Act and Goods and Services Tax (GST) regulations.
Statutory deductions: The EOR handles statutory deductions such as Professional Tax and Provident Fund (PF).
4. Legal Compliance and Risk Mitigation with an EOR in India
Navigating India's complex labor laws can be challenging, but an Employer of Record (EOR) simplifies compliance and mitigates legal risks. Here's how:
Compliance with Local Labor Laws: The EOR ensures your business adheres to key regulations such as the Industrial Disputes Act and the Code on Wages, preventing potential legal issues.
Minimum Wage Protection: It guarantees employees receive wages according to India’s minimum wage laws, safeguarding your business from disputes.
Staying Updated with Legal Changes: The EOR stays on top of the frequent updates to labor laws, ensuring your business remains compliant with the latest regulations.
Legal Responsibility and Risk Mitigation: As the legal employer of record, the EOR assumes responsibility for employment-related matters, shielding your business from risks associated with non-compliance.
5. Tax and Regulatory Reporting
The EOR takes care of tax and regulatory reporting to ensure full compliance:
Tax reporting: The EOR handles all necessary tax filings, including TDS and income tax, ensuring your business stays audit-ready.
Recordkeeping: The EOR maintains detailed records of all payroll transactions, deductions, and tax filings.
6. Ongoing HR and Administrative Support
The EOR takes care of various HR tasks, enabling you to focus on your core business:
Partnering with an EOR in India helps businesses navigate the complexities of local labor laws, ensure compliance, and mitigate risks without the need to set up a local entity. The EOR manages the heavy lifting of payroll, employee benefits, and legal compliance, allowing you to focus on growing your business.
Leave management: The EOR handles employee leave records and statutory entitlements.
Employee performance management: The EOR assists with performance tracking and ensures employees receive appropriate support.
Benefits administration: The EOR ensures all employee benefits (like health insurance and paid leave) are managed effectively.
What are the key benefits of using an EOR in India?[toc=Benefits of EOR]
Global companies increasingly turn to Employer of Record (EOR) services in India to streamline their hiring process, ensure compliance with local laws, and avoid the complexities of setting up a local entity.
Based on our extensive research and client feedback, here are the key benefits of using EOR services in India:
Speed and Efficiency: Using an EOR in India allows businesses to hire talent quickly, bypassing the lengthy and bureaucratic process of setting up a local subsidiary. The EOR handles all legal and administrative tasks, enabling your company to onboard employees in a matter of days rather than months, which accelerates your growth in the Indian market.
Legal Compliance: India's labor laws are notoriously complex and constantly evolving. An EOR ensures your business is compliant with all relevant regulations, from the Industrial Disputes Act to the Code on Wages. They stay updated with any legal changes, preventing costly fines or lawsuits due to non-compliance and offering peace of mind in a fast-changing legal environment.
Cost Savings: Setting up a local entity in India can be expensive, with costs related to office space, legal teams, and HR infrastructure. By partnering with an EOR, you can bypass these overhead expenses, only paying for the services required to hire and manage employees. This cost-effective solution frees up resources to invest in other key areas of your business.
Focus on Core Business: Outsourcing HR and administrative functions to an EOR means your team can focus on what matters most, growing your business. From payroll processing to benefits administration and compliance, the EOR handles all the complexities of managing employees, allowing you to dedicate time and energy to strategy, innovation, and expansion.
Global companies use EORs in India to simplify the complexities of international hiring, minimize administrative burdens, and ensure compliance with Indian labor laws. With an EOR handling critical HR and legal tasks, businesses can focus on their core goals, expand faster, and reduce the risks associated with entering a new market.
What are the key aspects of payroll in India?[toc=Payroll in India]
Managing payroll in India is a critical responsibility for any employer and, in our experience supporting global teams, we have found that Indian payroll is uniquely complex due to frequent regulatory updates and strict local compliance requirements. An Employer of Record (EOR) in India takes over this burden, ensuring every aspect is handled accurately and on time.
1. Employee salaries structures in India
In India, employee salaries are typically structured around the Cost to Company (CTC), which represents the total cost incurred by the employer. The salary structure includes both fixed and variable components, alongside allowances and non-cash benefits.
Fixed Pay: Includes basic salary, which forms the foundation for other benefits, and allowances such as House Rent Allowance (HRA), Conveyance Allowance, and Leave Travel Allowance (LTA).
Variable Pay: This includes performance-based components like bonuses and commissions.
Benefits: Non-cash benefits, such as employer contributions to the Employees’ Provident Fund (EPF), health insurance, etc.
Gross Salary: The total of basic salary, allowances, and bonuses.
Net Salary: The take-home pay after deductions.
2. Statutory Deductions and Contributions
Provident Fund (EPF): Both employer and employee must contribute to the Employees’ Provident Fund, a mandatory retirement savings scheme.
Employee State Insurance (ESI): Required for employees earning below a specific threshold, covers medical and disability benefits.
Professional Tax: Levied by some states, deducted from the employee's salary each month.
Tax Deducted at Source (TDS): Income tax withheld from salaries as per individual tax slabs and deposited with the government.
Payroll elements can differ by state, such as professional tax rates, leave policies, and wage structures, so expertise in local, as well as national, rules is vital.
Cost-to-Company Calculator for Hiring Employees in India[toc=CTC Calculator]
Our fully loaded cost calculator makes it easy for you to estimate your expenses. Simply enter the gross salary of your potential employee, and our calculator will provide you with a comprehensive breakdown of the total cost, including our Employer of Record (EOR) fees.
What taxes should employers and employees be aware of in India?[toc=Taxes in India]
In our extensive experience managing payroll and legal compliance in India, we’ve found that understanding Indian tax regulations is crucial for both foreign employers and local employees. Here’s a concise, up-to-date overview:
Income Tax
Income tax is a direct tax levied by the government on an individual's income. In India, the income tax rates for the financial year 2025-26 are based on a progressive tax system, where the tax rate increases as taxable income rises.
India has two income tax thresholds commonly known as the “Old Tax Regime” and “New Tax Regime”.
New Tax Regime (without most deductions)
Income Slab
Tax Rate
Up to ₹4,00,000
Nil
₹4,00,001 to ₹8,00,000
5%
₹8,00,001 to ₹12,00,000
10%
₹12,00,001 to ₹16,00,000
15%
₹16,00,001 to ₹20,00,000
20%
₹20,00,001 to ₹24,00,000
25%
Above ₹24,00,000
30%
Surcharge for New Tax Regime:
10% if income exceeds ₹50 lakhs but not ₹1 crore.
15% if income exceeds ₹1 crore but not ₹2 crore.
25% if income exceeds ₹2 crore.
Additionally:
Salaried individuals are eligible for a standard deduction of ₹75,000, effectively making incomes up to ₹12.75 lakh tax-free.
A rebate under Section 87A ensures zero tax liability for taxable incomes up to ₹12 lakh.
Old Tax Regime (with deductions)
Income Slab
Tax Rate
Up to ₹2,50,000
Nil
₹2,50,001 to ₹5,00,000
5%
₹5,00,001 to ₹10,00,000
20%
Above ₹10,00,000
30%
Surcharge for Old Tax Regime:
10% if income exceeds ₹50 lakhs but not ₹1 crore.
15% if income exceeds ₹1 crore but not ₹2 crore.
25% if income exceeds ₹2 crore but not ₹5 crore.
37% if income exceeds ₹5 crore.
Additionally:
A 4% Health and Education Cess is applied to the tax amount after adding surcharge in both regimes.
Tax Deducted at Source (TDS)
Employers must deduct TDS from salaries each month based on the applicable tax slab and remit it to the government.
TDS applies to salaries, professional fees, and certain allowances.
Recent threshold updates benefit freelancers and contract workers by raising exemption limits.
Professional Tax
Levied by state governments; not all states apply it.
Deducted monthly from employees’ salaries and varies by location and income.
Example: Maharashtra up to ₹200/month; Tamil Nadu up to ₹1,250/half-year.[Professional Tax Examples]
Provident Fund (EPF)
Both employer and employee contribute 12% of basic salary.
Provides retirement benefits; contributions are often tax-exempt up to ₹1.5 lakh/year under Section 80C.
Employee State Insurance (ESI)
For employees earning ≤₹21,000/month.
Employer contributes 3.25% and employee 0.75% of gross salary.
Covers healthcare, maternity, and disability benefits.
Goods and Services Tax (GST)
Applicable only if the company is providing taxable services and annual turnover exceeds prescribed thresholds (generally not affecting standard employment relationships).
Summary Table: Key Statutory Taxes/Contributions
Component
Who Pays?
Typical Rate / Slab
Applicability
Income Tax
Employee
Progressive (see above)
All salaried individuals
TDS
Employer
As per income tax rate
On salary, professional fees, allowances
Professional Tax
Employer
₹0–₹200/month (varies)
Salaried, as per state-specific rules
EPF
Both
12% of basic salary each
Establishments with 20+ employees
ESI
Both
3.25% (employer), 0.75% (employee)
Employees earning ≤₹21,000/month
LWF
Both
Nominal monthly/annual
Select states only
Staying compliant with these taxes and deductions is essential for smooth operations in India. An EOR or specialized payroll provider handles all these requirements managing calculations, filings, remittances, and providing timely updates as regulations evolve.
What are the standard leave policies in India?[toc=Leaves Policies]
India’s labor laws mandate specific leave entitlements to ensure employee welfare and work-life balance. From our extensive experience managing HR compliance in India, here’s a clear summary of the key leave types employers must provide:
Earned Leave (Annual/Privilege Leave): Employees are typically entitled to 12–15 days of paid leave per year, which can be accrued and carried forward as per organization or state rules.
Sick Leave: Usually 7–12 days per year, sick leave is provided for health issues and may require a medical certificate for longer absences; policies can vary by company and state.
Casual Leave: Allotted for short-term personal or emergency needs, casual leave ranges from 7–10 days annually and usually cannot be carried over to the next year.
Maternity Leave: Female employees are entitled to 26 weeks of paid maternity leave for their first two children (12 weeks for subsequent children), as mandated by the Maternity Benefit Act.
What are the employee benefits in India?[toc=Employee Benefits]
In our experience working with businesses expanding into India, we’ve seen that employee benefits are a critical part of hiring and talent retention. Indian labor law mandates certain statutory benefits for most employees, and many companies also offer additional perks to remain competitive.
1. Statutory Benefits
Statutory benefits in India are legally mandated and include the Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), gratuity for long service, paid statutory leave, and maternity benefits. These core protections ensure employees have retirement savings, healthcare coverage, and job security during key life events.
2. Supplementary Benefits
Supplementary benefits go beyond legal requirements and often include life or health insurance, performance bonuses, flexible work options, meal or transport allowances, and wellness programs. These extras help companies attract and retain top talent in a competitive market.
If you're looking to dive deeper into how these benefits can impact your talent strategy, check out our Employee Benefits in India: A Comprehensive Guide, it’s a handy resource to help you stay ahead in the competitive talent market.
What are the key steps involved in terminating employees in India?[toc=Termination in India]
Based on our extensive experience managing employee terminations in India, we've identified five key steps for a compliant and smooth process:
Serve Notice Period: In India, employees with at least one year of service are typically entitled to a 30-90 day notice period. We've found that clearly defining this in the employment agreement helps avoid disputes. Alternatively, employers can offer payment in lieu of notice.
Follow Due Process for Termination for Cause: When terminating for misconduct or poor performance, it's crucial to follow proper disciplinary procedures. Our legal team advises conducting a thorough investigation, issuing warnings, and providing the employee an opportunity to respond before making a final decision.
Provide Full and Final Settlement: Upon termination, employers must settle all dues, including outstanding salary, unused leave encashment, and reimbursements. For employees with 5+ years of service, gratuity payment is also mandatory. We've seen that prompt and accurate settlements significantly reduce the risk of legal disputes.
Issue Necessary Documentation: It's essential to provide a formal termination letter stating the reason and last working day. Additionally, issue a relieving letter and experience certificate. Our clients have found that clear, comprehensive documentation helps maintain professional relationships and minimizes potential conflicts.
Comply with EOR Responsibilities: For companies using an Employer of Record (EOR), the EOR manages the termination process, ensuring compliance with Indian labor laws. In our experience, this significantly reduces legal risks and administrative burdens for the client company.
What are the various types of terminations in India?
Our HR experts have identified four main types of termination in India:
Retrenchment due to restructuring or economic reasons.
Department closure
Collective Termination
Layoffs affecting ≥100 employees. Requires government approval.
Factory shutdown
Voluntary Resignation
Employee-initiated exit. Requires acceptance by employer.
Career change, relocation
Note: Larger Companies using EOR services should be aware that terminating a significant number of employees (usually 100 or more) may require additional scrutiny or government notification. This is in accordance with the Industrial Disputes Act, 1947, which mandates government approval for layoffs, retrenchment, or closure in industrial establishments with 100 or more workmen. Pregnant women and those on maternity leave have special protections.
If you're looking to understand the legal process for employee termination, explore our comprehensive guide on "How to Terminate an Employee".
What are the visa & work permit requirements in India?[toc=Visa & Work Permits]
In our experience handling visa and work permit processes for numerous international clients, obtaining the necessary documentation for foreign employees in India can be complex.
Work Permit (Employment Visa) Requirements:
Applicant must be a highly skilled professional, employed by a company registered in India.
Annual salary should be at least US $25,000, with some exceptions for certain professions.
Visa must be issued from the applicant's country of origin or domicile.
Applicant must comply with all legal requirements, such as payment of taxes.
Supporting documents include passport, photos, proof of employment, registration documents of the Indian company, and proof of professional expertise.
Our team strongly recommends checking the latest requirements on official websites and consulting with the nearest Indian Embassy, High Commission, or Consulate for up-to-date information.
Yes, Employer of Record (EOR) services are fully legal in India. An EOR acts as the legal employer for your team, managing all HR, payroll, compliance, and statutory benefits in line with Indian labor laws. By partnering with an EOR, global companies can hire and manage employees without the need to set up a local entity, ensuring compliance with local employment regulations.
What is the cost of EOR in India?
The cost of EOR services in India typically ranges between $99 to $499 per employee per month, depending on the provider and the services included, such as payroll management, tax compliance, benefits administration, and more. Additional services, like recruitment or employee onboarding, can affect pricing.
Which is the best EOR service provider in India?
Wisemonk is the best EOR service provider in India, offering deep expertise in local labor laws and compliance. For global coverage, Deel, Rippling, Globalization Partners, Papaya Global, and Velocity Global are strong alternatives. These providers cover multiple countries and offer comprehensive services for international teams. Choose based on your specific global hiring needs.
What is the future of EOR in India?
The future of EOR in India looks promising, as more companies turn to flexible, cost-effective solutions to hire and manage talent without setting up local entities. With India being a hub for tech talent and innovation, businesses will increasingly rely on EOR providers to navigate complex legalities and scale quickly. The rise of remote work and digital transformation will further drive the adoption of EOR services, enabling companies to hire efficiently and compliantly in India.
How much overtime is allowed by law in India?
In India, overtime regulations are governed by the Factories Act of 1948 and the Shops and Establishments Act, which vary by state. Generally, employees are entitled to overtime pay if they work more than 48 hours a week, with the overtime rate being at least twice their normal hourly wage. The maximum number of overtime hours an employee can work is typically capped at 50 hours per quarter, although this can vary based on specific industry regulations or state laws.
An Employer of Record (EOR) and a Professional Employer Organization (PEO) both assist businesses with HR functions, but they operate differently. An EOR legally hires employees on behalf of a company, assuming responsibility for compliance, payroll, taxes, and benefits, while the client company manages day-to-day work. In contrast, a PEO typically enters into a co-employment relationship, where both the PEO and the company share responsibility for employees. In a PEO setup, the client company still retains control over employee management but shares legal responsibilities with the PEO.
To learn more, check out our detailed article on "PEO vs EOR".
Aditya Nagpal, founder of Wisemonk.io, is a leading expert in Employer of Record (EOR) services in India. With over eight years of experience in HR and HRTech, he specializes in Indian payroll compliance and understanding the country's diverse talent landscape. Aditya has guided employee engagement programs for 50+ companies, including Amazon India and Novartis, and crafted India-specific policies for international organizations.
His approach to making Indian talent work for global companies focuses on cultural understanding, attracting the right talent, and compliance-first strategies. Aditya excels at building successful employment cultures where both talent and companies thrive. Through Wisemonk.io, he continues to help global companies unlock the potential of Indian talent, ensuring effective hiring and driving long-term success in this dynamic market.
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