Employees hired through an Employer of Record in India receive all mandatory statutory benefits required by Indian labor laws, and they can also receive additional benefits that your company chooses to offer. The EOR administers every benefit compliantly, ensuring employees get what they’re entitled to without any gaps or errors.
Based on our experience supporting 500+ global companies hiring in India, benefits administration is an area where teams often expect US-style simplicity. Indian law is far more structured, and an EOR removes the complexity by managing every component end to end.
Mandatory statutory benefits employees receive
Statutory benefits are legally required in India, and a compliant EOR ensures every employee is enrolled correctly and receives these entitlements on time.
- Employees’ Provident Fund (EPF): A retirement savings program where both employer and employee contribute a percentage of the employee’s wages. The EOR manages monthly contributions, filings, and compliance with EPF rules.
- Employees’ State Insurance (ESI): Medical and disability coverage for employees earning below the government-specified threshold. The EOR handles registration, contributions, and claims coordination when applicable.
- Gratuity: A lump-sum benefit paid after five years of continuous service with the employer. The EOR keeps gratuity records up to date and ensures final payouts follow the law.
- Paid Leave Entitlements: Leave rules vary by Indian state, but employees typically receive:
• Earned/privilege leave for vacation
• Sick leave for medical needs
• Casual leave for urgent personal matters
• A fixed number of public holidays
The EOR tracks accruals, balances, and payouts as required.
- Maternity Benefit: Eligible women employees receive 26 weeks of paid maternity leave under the Maternity Benefit Act. The EOR ensures eligibility checks, payroll adjustments, and documentation are compliant.
- Statutory Bonus: Employees under specific salary thresholds receive an annual statutory bonus. The EOR calculates and processes this based on legal requirements and company policy.
Supplemental benefits employees may receive
Many companies enhance their benefits package to stay competitive in India’s talent market. An EOR can administer these additional perks seamlessly.
- Group Health Insurance: Private medical insurance (often covering dependents) is common among global employers. The EOR procures or manages plans and handles deductions.
- Paternity Leave: While not mandated, many employers provide paid paternity leave. The EOR documents and processes it as part of the employee’s benefits.
- Additional Insurance Options: Employers sometimes offer life or accident insurance. The EOR manages enrollment and monthly contributions.
- Allowances and Perks: Depending on the role and company, employees may receive:
• Internet or remote-work stipends
• Meal allowances
• Transportation support
• Home office setup support
The EOR includes these in payroll and ensures correct tax treatment.
- Wellness and Engagement Programs: Some companies offer wellness reimbursements, therapy support, or gym benefits. The EOR manages payouts or third-party coordination.
- ESOP Administration (if applicable): Startups may offer stock options. While ESOPs are managed by the parent company, the EOR ensures compliance-related documentation aligns with Indian employment law.
Why employees benefit from the EOR model?
A well-run EOR provides predictable, timely benefit administration, accurate payroll integration, and consistent documentation. This reduces employee friction and ensures they receive every entitlement without delays.
How Wisemonk Helps?
Wisemonk is an India-specialist Employer of Record that helps global companies hire, pay, and manage talent in India without setting up a local entity. As a full-stack EOR, we handle compliant employment contracts, payroll, tax withholdings, statutory filings, equipment procurement, and employee support while ensuring every hire is fully compliant with Indian labor laws.
Because we operate our own registered Indian entity and internal HR, payroll, and compliance teams, we manage all statutory and supplemental employee benefits with accuracy. This includes EPF, ESI, gratuity, paid leave management, insurance administration, and policy updates when laws change. Our role is to make sure employees receive every entitlement correctly and on time, while your team continues to manage their day-to-day work.
Client Review:
“Working with the Wisemonk team in India has been a genuinely positive experience… I value the quality of compliance Wisemonk brings.”
- Lisa Jones, Chief People Officer at Couch Health
Need help with your global expansion in India? Contact our team to learn how we can support your global operations.