Written employment contract is not necessary. However the employer and employee must agree on the working conditions and benefits before the employment begins.


Salaries are paid on monthly basis for work between the first and last day of the month.
The paydays the last day of the month, but can be as late as the 20th of the following month.

HR & Labor

Working days range from 8 to 9 hours and workweek maximum 48 hours. Breaks are given after working 4 or 5 consecutive hours.


A foreign national must apply for Indian working visa before entering India. The employment visa can be extended on yearly basis for maximum 5 years.

Minimum Wage

The minimum wage for unskilled workers is 9178 Rupees, for semi-skilled worker is 10140 Rupees and for skilled worker 11154 Rupees.

Pension Fund

The employer contributes 12%.

The employees contribute 12%.

Public Holidays

August 15: Independence Day & Janmashtarni (Vaishnav)
September 02: Id-ul-Zuha (Bakrid)
September 30: Dussehra
October 01: Muharram/Ashura
October 02: Mahatma Gandhi Jayanti
October 19: Diwali (Deeoavali)
November 04: Guru Nanak's Birthday
December 02: Mailad-un-Nabi or Id-e- Milad
December 25: Christmas Day

January 01: New Years Day (Regional Holiday)
January 26: Republic Day
February 13: Maha Shivaratri
March 02: Holi (Regional Holiday)
March 30: Good Friday (Regional Holiday)
April 2: Easter
June 15: Idul Fitr (Regional Holiday)
August 15: Independence Day
October 02: Mahatma Gandhi Birthday
October 19: Dusshera
November 7: Diwali
December 25: Christmas Day

Severance Payments

Employer is responsible for paying the following - leave encashment, gratuity payment and any other amount agreed in the contract. The benefits are calculated based on employee’s salary and the length of employment.

Advance Notice

The advance notice is one month.

Termination Procedure

Employer must give the employee one month notice.

Sick Days

Number of days is not specified it depends on the employer, but commonly is 7 days.

Sick days cannot carry over from one year to the next, and for most companies, policy holds that for illness of more then 2/3 days medical certificate is required.

Vacation Days

Privilege leave or Earned leave is provided for planned long leaves such as vacations.

Typically this leave is calculated at a rate of 1.25 earned for every month employed. The maximum accrued days is typically 30, but in some cases may be up to 60.

Casual Leave

Casual leave is provided for urgent and unexpected matters. Typically companies have a strict maximum of three days a month, and 6 yearly.

Casual leave is not encashable. At the end of the year unused leave lapse automatically.

Maternity Leave

Maternity leave is 26 weeks. The parental leave is 8 weeks, however a women with two or more children already is entitled to 12 weeks maternity leave.

It is awarded will pull pay on completion of at least 80 days in an establishment in the 12 months prior to expected date of delivery.

In addition to 12 weeks of salary, a female worker is entitled to a medical bonus of 3,500 Indian rupees.

Additional Employee Withholdings

1) National Insurance

1) Employer contributes 4.75%.

1) Employees contribute 1.75%.

Expat Benefits

Depending on the company, the expat benefits include matching the salary of their home country,adjusting the cost of living and other personal allowances. Assistance with children’s education fees is also a common benefit for expats.


VAT is 5% standard rate.