Employer Payroll Tax
Employer Payroll Tax
Employee Income Tax
Minimum wages in India differ according to the governing state and workers skill set.
Employees must be paid by the last day of the month, however, it is customary to pay employees from the 28th of the month onward.
A full-time work week is 48 hours.
Overtime is paid double the rate of the normal pay.
Employees are entitled to 15 paid annual vacation days. A maximum of 30 vacation days can be carried over to the next year.
There are 3 national holidays where businesses must be closed; Republic Day, Independence Day, and Ghandi Jayanti. In addition to this, each region has their own public holidays that are observed.
Employees are allowed a maximum of 15 paid sick leave days a year and receive 70% of their average daily wage.
Employees receive 100% of their average wage in the six months prior to childbirth. The amount of fully paid time leave depends on the number of children an employee has.
- First 2 children – 26 weeks paid
- 3 or more children – 12 weeks paid
The private sector does not have mandatory leave, but it is common that 15 days leave is given to male government employees.
There are no statutory laws for parental leave
Casual leave: 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.
Work related injury leave: Work injury benefits come from the contributions made towards the employees’ compensation and employees state insurance. Temporally disabled workers receive 50% compensation monthly.
If termination isn’t specified in a contract, an employer must give 30 days’ notice or payment in lieu to an employee who has worked for at least 3 months. No notice is required for termination due to misconduct.
A 30 days’ notice period should be given.
Severance payment is given to workers who have been continuously employed for 2 years and are terminated for redundancy. Severance payment reflects duration of employment, performance and salary.
VAT is 5% standard rate.