---
title: "PEO in India: How It Works, Costs and Compliance 2026"
url: https://www.wisemonk.io/peo-india
lang: en
---

Written By [Aditya Nagpal](https://www.wisemonk.io/authors/aditya-nagpal)

Category Professional Employer Organization Services

Read time 10 min read

Last updated October 28, 2026

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# PEO in India: How It Works, Costs and Compliance 2026

PEO services in India run payroll, filings and benefits under your own entity. See what that covers, what it costs, and when an EOR or entity fits better.

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TL;DR

- A PEO in India runs monthly payroll, statutory filings, benefits and HR administration for your team while your own company stays the single legal employer, because Indian law recognises one legal employer per worker.
- Unlike a US PEO, no provider in India can become your co-employer, so the same work still gets done but only under your entity's registrations; with no entity, the same service is delivered as an EOR instead.
- PEO fees are charged per employee, as a share of payroll, or as a hybrid, and the statutory contributions, gratuity and bonus sit on top at cost, because your entity, not the provider, actually owes them.
- The compliance load spans PF, ESI, TDS, professional tax, gratuity, bonus and maternity, each with its own filing calendar and penalties, so provider choice matters more than the quality of a dashboard.

***Weighing a PEO in India for your own team?*** ***[Speak with our experts today!](https://www.wisemonk.io/contact)***

***Every figure here is sourced and verified, which is*** ***[how we build research-backed content.](https://www.wisemonk.io/our-content-methodology)***

If your company is hiring in India, "PEO" is probably one of the first terms you reached for, and it is also the one most likely to point you in the wrong direction. The service most US buyers picture, a co-employer that shares legal employer status with you, is not the service Indian law allows, so what you are actually sold under that name depends entirely on whether you already hold an Indian entity.

This guide walks through what a PEO in India does, how it differs from the US model and why, what it files and what it costs, how to judge a provider, and when to move between a PEO, an Employer of Record and your own entity.

## What is a PEO, and what does "PEO in India" actually mean?

A PEO in India is an outsourcing partner that runs payroll, statutory filings, benefits and HR administration for your India team, while your own company stays the single legal employer and holds the registrations. PEO stands for professional employer organization. The provider executes the monthly work; you keep every commercial decision.

PEO Services in India

The complication is that the model most US buyers picture is not the model they will get. In the United States a PEO becomes a co-employer. Indian law recognises one legal employer per worker, so the same work still gets done, but whose name sits on the paperwork changes.

In practice a PEO sits between your finance function and India's filing calendar. You approve a payroll register, the provider turns it into pay runs, deductions, challans, returns and [payslips](https://www.wisemonk.io/blogs/paystub-in-india-what-employers-need-to-know), then hands you a reconciliation you can put in front of an auditor.

### What a PEO handles for your India team

A competent India provider should be able to name the forms and the cadence without hedging:

![What a PEO handles in India: payroll processing, statutory filings, benefits admin, employee lifecycle, HR operations](https://www.wisemonk.io/_image?href=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F2i41ja6l%2Fproduction%2F0a85ffdf5cbfede989b0cc64d76e88079140dd10-1024x768.png%3Fw%3D3200%26q%3D90%26auto%3Dformat&w=1600&h=1200&q=90&f=webp&fit=cover&position=center)

A competent India provider should name the exact forms and filing cadence for each of these without hedging.

- **Payroll processing:** Monthly runs in rupees with tax deducted at source, provident fund, state insurance and professional tax withheld in the same cycle, plus payslips.
- **Statutory filings:** Provident fund and insurance remittances, salary tax returns, professional tax on each state's schedule, and year-end reconciliations.
- **Benefits administration:** Group health insurance, gratuity accrual, statutory bonus, leave encashment and the tax-efficient components Indian pay packets use.
- **Onboarding and offboarding:** Document verification, background checks and provident fund enrolment in, then full and final settlement and exit filings out.
- **HR operations and reporting:** Leave and attendance policy matched to each state's law, grievance handling, and the registers your auditors ask for.

### What a PEO in India does not do

- **It does not remove your statutory liability:** A late remittance is your entity's default even when the provider caused it.
- **It does not sponsor work visas or cover contractors:** Foreign-national visas and independent specialists both sit outside a PEO, under different arrangements entirely.

One thing this guide deliberately does not do is rank vendors. It explains how PEO services in India work so you can judge any provider on the same terms.

> ***If you want a ranked, side-by-side comparison of named providers, that lives in our separate guide to the*** ***[best PEO service providers in India](https://www.wisemonk.io/blogs/top-peo-service-providers-in-india)******.***

## How is a PEO in India different from a PEO in the United States?

The gap is not about what work gets done, it is about who the law treats as the employer. In the United States a PEO becomes a co-employer and shares legal employer status with you. India recognises one legal employer per worker, so no provider can share that status, whatever the contract calls the arrangement.

PEO in the United States versus a PEO in India

| Dimension | PEO in the United States | PEO in India |
| --- | --- | --- |
| Legal employer | Co-employer; shares legal employer status with the client | One legal employer per worker; the provider never shares that status |
| Whose registrations carry it | The PEO uses its own tax ID; under IRC section 3511 it is the employer only for the pay it remits, and the client stays liable beyond that | One entity's registrations carry everything; the four Labour Codes (in force 21 November 2025) attach duties, contributions, records and penalties to a single entity |
| Co-employment | A recognised model | Not a statutory category: not illegal, but no provision lets two companies register as joint employers of one worker |

The practical differences come down to who the legal employer is, whose registrations the filings run through, and what you need before a provider can act. The courts reinforce the one-employer rule by looking past the contract label to who actually controls, pays, disciplines and dismisses.

How a US PEO compares with the two shapes a PEO takes in India

| Dimension | US PEO | India, with your own entity | India, without an entity |
| --- | --- | --- | --- |
| Legal employer | Client and PEO share status | Your Indian entity, alone | The provider, alone |
| Employer status shared? | Yes, by contract | No. One legal employer | No. One legal employer |
| Whose registrations | The PEO's (certified PEO per IRC s.3511) | Yours: PAN, TAN, PF and ESI codes | The provider's |
| What you need first | A signed client service agreement | An incorporated entity with registrations | Nothing in India |
| What it is called | PEO, or co-employment | PEO, or HR and payroll outsourcing | Employer of Record |

> ***If payroll outsourcing is also on the table, our breakdown of*** ***[PEO vs payroll outsourcing in India](https://www.wisemonk.io/blogs/peo-vs-payroll-outsourcing-in-india)*** ***draws the scope line between the two.***

## How does a PEO in India work?

A PEO in India works in one of two shapes, and the fork is whether you already hold an Indian entity. If you do, the provider runs the back office under your registrations. If you do not, the same service has to be delivered as an Employer of Record, because someone must be the single legal employer and it cannot be a company with no presence in India.

![Diagram of the PEO in India model: a global company contracts Wisemonk's India entity, which acts as the local employer of record and legally employs the candidate while the company directs the work.](https://www.wisemonk.io/_image?href=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F2i41ja6l%2Fproduction%2Fb6a00afa1d416fdf97dd1aaf9c87a61fd191ea1d-1600x620.png%3Fw%3D3200%26q%3D90%26auto%3Dformat&w=1600&h=620&q=90&f=webp&fit=cover&position=center)

How a PEO in India works: your company directs the work while the provider's Indian entity serves as the local legal employer, an EOR where you hold no entity.

### The co-employment model under Indian law

Both shapes are normal, compliant ways to run an India team. What you should not accept is a proposal that stays vague about which of the two you are being sold, because the answer decides where liability sits.

- [**The 50% wage rule**](https://www.wisemonk.io/blogs/new-labour-code-in-india)**:** The Codes introduced a uniform definition of wages, under which excluded allowances cannot exceed one-half of total remuneration; any excess is added back into the contribution base. Salary structures designed before November 2025 now pull more into that base than intended.
- **Fixed-term parity:** Fixed-term employees are entitled to the same benefits as permanent staff on a pro-rata basis.
- **State-specific nuances:** [Notice periods](https://www.wisemonk.io/blogs/notice-period-rules-and-laws-for-remote-employees-in-india), working hours and leave accrual are set by each state's Shops and Establishments Act, so contracts are not interchangeable across states.

### How a PEO works, step by step

- **You hold the entity and the registrations:** Your company stays the legal employer and holds the provident fund and insurance codes.
- **You hire under your own company:** You keep hiring decisions, pay design and performance management.
- **The provider runs the pay run and the filings:** Deductions, challans, returns and payslips, against your registrations.
- **Compliance and audits stay with you:** The provider executes; the liability for a late or wrong filing remains your entity's.

### What a PEO does not do, and what stays with you

A PEO covers employees on a payroll. It does not source candidates, which is a separate recruitment service, and it does not cover independent specialists. You keep every commercial call about the work; the provider owns the execution and the calendar.

## PEO or EOR in India: which model do you actually need?

Entity status decides it. If you hold an Indian entity, a PEO runs HR operations and payroll under your registrations. If you hold none, an [Employer of Record](https://www.wisemonk.io/services/employer-of-record) becomes the legal employer so hiring can start now. If you hold an entity and already have an HR team, payroll outsourcing covers the pay run alone.

The three models differ most on one question, whether you hold your own entity, and everything else follows from it.

PEO, EOR and payroll outsourcing in India compared

| Dimension | PEO | Employer of Record | Payroll outsourcing |
| --- | --- | --- | --- |
| Need your own entity | Yes | No | Yes |
| Legal employer | Your company | The provider | Your company |
| What the provider runs | Payroll, filings, benefits, onboarding, HR, reporting | Employment itself, plus payroll, filings, benefits | The pay run and its filings |
| Time to first hire | Days, once the entity and registrations exist | Days | Days |
| Best fit | You hold an entity and want the back office run | You hold no entity and need people this month | You hold an entity and an HR team |

An EOR is the only option that puts someone on a compliant Indian contract this month, and it does not commit you to anything permanent. It is a genuine Wisemonk EOR relationship, not a PEO by another name.

> ***For the full legal mechanics, including the principal-employer regime and the leading cases, read our deeper analysis of*** ***[EOR vs PEO in India](https://www.wisemonk.io/blogs/eor-vs-peo-in-india)******.***

## Why use a PEO in India?

A PEO earns its fee when you already hold an entity but do not want to build the compliance machinery around it. You are buying execution and accuracy, not legal employer status, which you already hold.

![Four benefits of using a PEO in India: reduced compliance risk, faster setup, cost control, and local expertise](https://www.wisemonk.io/_image?href=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F2i41ja6l%2Fproduction%2F5d4edc15e92c24cd001a39f66599745ba888f5f9-1920x1080.png%3Fw%3D3200%26q%3D90%26auto%3Dformat&w=1600&h=900&q=90&f=webp&fit=cover&position=center)

A PEO helps global companies with an existing Indian entity manage payroll and compliance without building a large in-house team.

- **Reduced compliance risk:** A provider that files under your registrations every month is less likely to miss a deadline than a finance team learning the calendar for the first time.
- **Faster back-office stand-up:** Once your entity and registrations exist, a provider can [run payroll](https://www.wisemonk.io/payroll-in-india) within days.
- **Cost control and focus:** You pay for the run rather than for a standing in-house payroll and compliance function.
- **Local expertise:** State-level professional tax and Shops and Establishments rules are exactly where out-of-country teams slip.

> **Expert insight:** the weakest line on most PEO invoices is the fee itself. The money that moves your budget is the statutory stack underneath it, which is why reading the pass-through schedule matters more than negotiating the headline rate.

> ***For the upside in full, from cost savings to risk mitigation, read our guide to*** [***the advantages of using a PEO in India***](https://www.wisemonk.io/blogs/advantages-of-using-peo-in-india)***.***

## How much do PEO services in India cost?

PEO services in India are quoted three ways: a flat fee per employee per month, a percentage of gross payroll, or a hybrid of the two. That fee buys operations. The statutory contributions, gratuity provisions and bonus your entity owes are passed through at cost, so read the pass-through schedule before the headline rate.

The three PEO pricing models

| Pricing model | How it is charged | Where it fits |
| --- | --- | --- |
| Per employee per month | Flat fee per active employee, independent of salary | Predictable; the model most India-focused providers use |
| Percentage of gross payroll | A share of monthly payroll value | Rises with every raise and bonus even when the work is unchanged |
| Hybrid | A lower per-employee base plus a reduced percentage | Model it carefully against your headcount and salary curve |

The dividing line on everything else is who owns the obligation.

What sits inside a PEO fee and what is billed on top

| Cost item | Who bears it | Inside the fee? |
| --- | --- | --- |
| Payroll processing, statutory returns and filing | Provider | Yes |
| Standard employment contracts and HR support | Provider | Yes, to a stated service level |
| Employer PF, ESI and labour welfare contributions | Your entity | No, passed through at cost |
| Gratuity provision, leave encashment and statutory bonus | Your entity | No, provisioned by you |
| Group health insurance premium | Your entity | No, at carrier cost |
| Off-cycle runs, contract amendments, new registrations | Your entity | Often charged per instance |
| GST on the provider invoice | Your entity | Added at 18%, zero-rated where it qualifies as export |

The provider fee is usually the smallest line on the invoice. Employer provident fund, gratuity and leave encashment add roughly 5% on top of gross at a senior salary, and materially more at wages low enough that provident fund sits under its ceiling.

Two costs get missed almost every time: a spread built into the exchange rate rather than shown as a fee, and per-instance charges on off-cycle runs, which on a growing team recur monthly. We do not publish a market band here, because ranges quoted at different scopes are close to meaningless as a comparison.

### Price your India hire both ways

Model the fully loaded employment cost, then break a cost-to-company figure down to in-hand pay.

[Open the employee cost calculator](https://www.wisemonk.io/tools/employee-cost-calculator) [Open the salary calculator](https://www.wisemonk.io/tools/salary-calculator)

> ***For the full pricing breakdown, the models, the fee ranges and a worked example, see our guide to*** [***the cost of a PEO in India***](https://www.wisemonk.io/blogs/cost-of-peo-in-india)***.***

> **What we take off your plate:** right now you are probably chasing a payroll bureau, an accountant, an insurance broker and a recruiter across four separate bills. We roll all of it into one team and one monthly invoice, in your own currency, so you are back to reconciling a single number.

## What statutory compliance must a PEO manage in India?

A PEO in India runs compliance on two layers, and because India recognises one legal employer, the penalties land on your entity, not the provider.

Core statutory contributions and benefits a PEO in India

| Statutory item | Who pays | Rate or amount | Threshold and trigger |
| --- | --- | --- | --- |
| Provident fund | Employer and employee | 12% each on basic plus dearness allowance; of the employer's share, 8.33% to the pension scheme (capped at Rs 2,083) and 3.67% to the fund | Mandatory at 20 or more employees; Rs 25,000 wage ceiling governs the pension split |
| Employees' state insurance | Employer and employee | 3.25% employer, 0.75% employee on gross wages | 10 or more employees; wages up to Rs 21,000 per month |
| Tax deducted at source | Employer withholds | Per the employee's slab and regime, under s. 392 of the Income-tax Act 2025 | Every salaried employee; Form 138 quarterly, Form 130 annually |
| Professional tax | Employer deducts and remits | Varies by state | State by state; several states levy none |
| Gratuity | Employer | Last monthly wage divided by 26, times 15, times completed years (about 4.81% accruing a year) | 5 years of service; the condition is waived for fixed-term employees, who accrue pro rata, so there is no one-year rule |
| Statutory bonus | Employer | Minimum 8.33% of wages earned, under the Code on Wages 2019 | Eligibility wage limit set by government notification |
| Maternity benefit | Employer | Up to 26 weeks paid, no more than 8 before the expected date of delivery | 10 or more employees, under the Code on Social Security 2020 |
| GST on the provider invoice | Client | 18% | Zero-rated where it qualifies as an export of services |

- **Central layer:** provident fund, ESI, income tax at source, gratuity, statutory bonus and maternity benefit.
- **State layer:** professional tax, labour welfare fund and Shops and Establishments rules, which change with every state you hire in.
- **The monthly calendar (as of 2026):** wages and TDS by the 7th of the following month, provident fund and ESI within 15 days of month close, TDS returns quarterly on Form 138 and the annual certificate on Form 130.
- **The penalty that bites:** deducting an employee's provident fund or insurance and failing to deposit it carries one to three years imprisonment plus a Rs 1,00,000 fine under the Code on Social Security; a record-keeping lapse runs up to Rs 10,000.
- **The common gap:** professional tax misalignment on multi-state teams, when a provider built for one state applies that slab to everyone.

> ***For the month-by-month filing calendar and who stays on the hook for each deposit, see*** ***[what a PEO actually files for you in India](https://www.wisemonk.io/blogs/peo-compliance-in-india)******.***

## How do you hire employees in India?

You have three realistic routes, and the right one depends on whether you hold an entity and how permanent the team is. None of them requires you to guess at Indian law yourself.

- [**Engage contractors:**](https://www.wisemonk.io/contractor-of-record) Fast and light, but classification is the risk you are managing, not payroll. Our Contractor of Record service handles compliant agreements and the classification memo.
- [**Set up your own entity and hire employees:**](https://www.wisemonk.io/company-registration-in-india) The permanent route. Incorporating the DIY way runs 6 to 12 months; our entity setup and capability centre build target a median of 8 to 12 weeks to first hires, with you owning 100% from incorporation.
- [**Hire through an EOR:**](https://www.wisemonk.io/eor) The only route that puts someone on a compliant Indian contract this month with no entity of your own.

If your team is already in seats and only the pay run hurts, managed payroll executes the cycle and its filings without the fuller PEO scope.

Hiring your first few people on a startup budget? Our [guide to PEO and EOR for startups in India](https://www.wisemonk.io/blogs/peo-for-startups-in-india) covers equity, speed, and the point where your own entity wins.

> ***For the step-by-step process, read how to*** [***hire through a PEO in India***](https://www.wisemonk.io/blogs/hire-through-peo-in-india)***.***

## How do you choose a PEO provider in India?

Judge a PEO in India on four things, and spend the least time on the platform demo, which is the least differentiated part of the offer.

- **Compliance depth across states:** Ask them to name the states they already file professional tax and Shops and Establishments registrations in.
- **Own infrastructure versus subcontracted filings:** Find out whether their India team files directly or hands your returns to a local firm, because that changes who you escalate to on a deadline.
- **Data security and DPDP Act readiness:** You are handing over identity, bank and salary data for every employee; ask what the processor contract commits them to.
- **Exit terms and portability:** Notice period, and whether they export employee master data and provident fund histories in a usable format.
- **Three red flags:** a provider that will not state plainly which company is the legal employer; a rate quoted with no written inclusion list or sample invoice; and a 2026 proposal still citing Form 16, section 192 or the Payment of Gratuity Act 1972, which means its filing practice predates the 2025 to 2026 statutory overhaul.

Once you have shortlisted a provider, our checklist of [what to check in a PEO agreement before you sign](https://www.wisemonk.io/blogs/peo-agreement-in-india) covers the clauses that decide liability, cost and exit.

> ***For the full selection checklist, read our guide to*** [***choosing the best PEO in India***](https://www.wisemonk.io/blogs/choose-best-peo-in-india)***.***

## When should you move between a PEO, an EOR and your own entity?

Move when the constraint changes. Start on an EOR when you have no entity and need people working this month. Move to your own entity paired with a PEO once the India team starts making decisions, signing contracts or booking revenue locally. Most companies use both over time, in that order.

- [**Permanent establishment exposure**](https://www.wisemonk.io/blogs/permanent-establishment-risk-in-india)**:** Once the India team makes business decisions or books revenue locally, tax authorities may treat the operation as a taxable presence regardless of whose payroll people sit on. Our [permanent establishment risk quiz](https://www.wisemonk.io/tools/permanent-establishment-risk-quiz) scores your own setup.
- **Senior hires and equity:** A country head generally wants to be employed by the company whose name is on their equity grant, which is cleaner on your own entity.
- **Cost-curve crossover:** Per-head fees stop scaling in your favour at some point. In our experience the [entity conversation](https://www.wisemonk.io/blogs/transition-from-eor-to-legal-entity) usually starts somewhere around 20 to 25 hires, though that is a pattern we observe rather than a formula, and it moves with salary levels and state spread.

### Find your EOR-to-entity crossover

Compare an EOR against your own entity at your headcount to see where the switch pays off.

[Try the EOR vs entity calculator](https://www.wisemonk.io/tools/eor-vs-entity-calculator)

> ***For the full staged path, from first hire to your own entity, read how to*** ***[expand into India with a PEO, stage by stage](https://www.wisemonk.io/blogs/expand-into-india-with-a-peo)******.***

## What are the risks and limits of using a PEO in India?

The main limit is the one buyers most often miss: a PEO does not move your statutory liability off your entity. If a provider files late, the default, interest and penalty are still yours, with commercial recourse to the provider under your contract. That is why a working command of [Indian labour law](https://www.wisemonk.io/blogs/labor-employment-law-in-india) matters more in a provider than the quality of its dashboard.

- **Residual liability:** You remain the employer of record in law, so the inspector's notice comes to you.
- **Billing opacity:** Double-billed statutory allowances and off-cycle per-instance charges are the errors that compound quietly on a growing team.
- **Lock-in risk:** A master agreement that lets termination grounds change after signature leaves your exit terms unsettled; confirm the data-portability and notice terms before you sign.

None of these is a reason to avoid a PEO. They are reasons to read the contract as carefully as you read the price.

> ***We weigh each of these in detail in*** ***[the real disadvantages of a PEO in India](https://www.wisemonk.io/blogs/disadvantages-of-a-peo-in-india)******.***

## How does Wisemonk provide PEO services in India?

Wisemonk is an [India native Employer of Record (EOR)](https://www.wisemonk.io/eor) that helps global companies hire, pay, and manage employees without setting up a local entity. We run the complex HR operations so you can focus on strategy, not administration, and we have done it for 300+ global companies supporting 2,000+ employees.

**Here's how we help businesses manage PEO services in India more effectively:**

- [**PEO services for your India entity**](https://www.wisemonk.io/peo-services-in-india): our PEO service for companies that already hold an Indian entity, running payroll, PF, ESI, professional tax and TDS filings, benefits and HR under your own registrations, from $49 per employee per month. A dedicated HR manager owns onboarding, letters, leave, employee queries and exits.

> **What sets our PEO apart:
>
> 1\.** Live in about a week, after we audit your PF, ESI, PT and TAN registrations and migrate your team.
> **2**. No setup fee and no minimum headcount.
> **3**. Laptops, insurance, benefits cards and background checks bundled on request.
> **4**. Switch from an EOR with tenure, gratuity and benefits intact.
> **5**. More complete than a $5 payroll bureau, cheaper than a $169 global platform, at $49.

- [**Employer of Record Services in India**](https://www.wisemonk.io/services/employer-of-record): if you hold no entity yet, Wisemonk EOR becomes the legal employer so you can hire compliantly this month, from $99 per employee per month, with equipment procurement and shipping handled as an add-on.
- [**Managed payroll**](https://www.wisemonk.io/managed-payroll): the India pay run and its filings executed for you when you already have an entity and an HR team, priced on a custom quote.
- [**Entity setup and capability centre build**](https://www.wisemonk.io/build-a-gcc-in-india): when a permanent presence makes sense, we incorporate, register and bank an entity you own 100%, with a median of 8 to 12 weeks to first hires.
- [**Background verification**](https://www.wisemonk.io/eor-india/background-checks): compliant pre-hire checks across identity, employment and education, from $50 per candidate for the standard package, as of 2026.

#### Hear from industry leaders

> We came across Wisemonk and met with the CEO and staff to explain our situation, and were very impressed with their customer-focused approach to their business. Wisemonk onboarded all of my employees in one or two days. They paid my employees' salaries on the day after my payment cleared. Needless to say, my employees and I were very satisfied with their service then and remain so over a year later. We are an American company, so I was very happy to see that they have a US bank account where I can make ACH payments to minimize bank charges. All salary payments are timely. They worked directly with my employees to enroll them in the health care program and explain any coverage-related issues. The best part is that we get to work with a dedicated person assigned to our company. I would highly recommend Wisemonk and think of them as our Indian HR department.
> \- ***Frank Menes*****,** Founder & CEO at Senem RFP

### Build your India team with the right setup

Understand the hiring, payroll and compliance requirements for your India team, and which delivery route costs less to run.

[Talk to an India Expert](https://www.wisemonk.io/contact) [Explore Employer of Record](https://www.wisemonk.io/eor)

## Frequently asked questions

**Do I need my own Indian entity to use a PEO in India?**

Yes. A genuine PEO runs payroll and compliance under your existing Indian entity and registrations. If you hold no entity, the same service has to be delivered as an Employer of Record, because somebody must be the single legal employer and it cannot be a company with no presence in India.

**How long does it take to start running payroll through a PEO in India?**

Days, once your entity and its provident fund and insurance registrations are in place. If you do not yet hold an entity, the timeline is set by incorporation and registration, which is why many companies start on an EOR and convert later.

**How much does a PEO in India cost, and what is billed on top?**

The provider fee is charged per employee, as a percentage of payroll, or as a hybrid. On top of that fee sit the employer statutory contributions, gratuity provision, bonus and GST at 18%, all passed through because your entity owes them.

**Who is liable if a statutory filing is late, the provider or my company?**

Your company. Where you are the legal employer, the default and penalty attach to your entity and its officers, with commercial recourse to the provider under your contract. Ask what indemnity the provider offers and what ceiling sits on it.

**Can I hire full-time employees in India through a PEO, and do I keep control of my team?**

Yes to both. You stay the legal employer, so you keep hiring, pay design and performance decisions. The provider runs payroll, filings, benefits and HR administration, not the management of your people.

**How many employees make an entity plus a PEO cheaper than an EOR?**

There is no fixed number, but the conversation usually starts somewhere around 20 to 25 hires, moving with salary levels and how many states you hire in. Model it against your own salary curve rather than a rule of thumb.

**Can I hire in Bangalore, Delhi or other Indian cities through a PEO?**

Yes, provided the provider holds or files the right state registrations for each location, because professional tax and Shops and Establishments rules are set per state. Coverage where you actually hire matters more than the length of a provider's country list.

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