Overview

Capital
New Delhi
Currency
Indian Rupee
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

8.33%
Pension (Provident Fund)
4.75%
Health insurance
13.08% Total Employment Cost
Employer

Employer Payroll Tax

12%
Pension (Provident Fund)
1.75%
Healthcare
13.75% Total Employee Cost
Employee

Employee Income Tax

0%
0 Rs - 2,50,000 Rs
10%
2,50,001 Rs - 5,00,000 Rs
20%
5,00,001 Rs - 10,00,000 Rs
30%
Above 10,00,000 Rs
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Belarus
India
Cambodia
South Africa
Georgia
87.39%
44.5%
34%
13.08%
2.1%
2%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
India
Georgia
Belarus
Ukraine
45%
27.65%
24%
13.75%
2%
1%
0%

Minimum Wage

General

Minimum wages in India differ according to the governing state and workers skill set.

Minimum wage (per month)
$2391
$2255.28
$1996
$60
$36.80
$22
$2.33
Luxembourg
Italy
Australia
India
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

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.

Working Hours

General

A full-time work week is 48 hours.

Overtime

Overtime is paid double the rate of the normal pay.

Leave

Paid Time Off

Employees are entitled to 15 paid annual vacation days. A maximum of 30 vacation days can be carried over to the next year.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
India
Mexico
Malaysia
Federal
30
13
43
30
12
42
24
17
41
15
3
18
6
8
14
8
6
14
10
10
Public Holidays

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.

 

Sick Days

Employees are allowed a maximum of 15 paid sick leave days a year and receive 70% of their average daily wage. 

Maternity Leave

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
PAID MATERNITY LEAVE (DAYS)
410
365
365
182
45
30
0
Bulgaria
Serbia
Albania
India
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

The private sector does not have mandatory leave, but it is common that 15 days leave is given to male government employees.

Parental Leave

There are no statutory laws for parental leave

Other 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.

Termination

Termination Process

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.

Notice Period

A 30 days’ notice period should be given.

Severance Pay

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

General

VAT is 5% standard rate.

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