India Payroll and Benefits Benchmark guide

Up to 12% - Pension fund
4.75% - Health insurance

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
Up to 12% - Provident fund
1.75% - Health insurane

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

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.

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

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 child birth. 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

15 days leave is given to male employees.

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.

Work injury benefits come from the contributions made towards the employees’ compensation and employees state insurance. Temporally disabled workers receive 50% compensation monthly.

VAT is 5% standard rate.

Employer must give the employee one month notice.

The advance notice is one month.

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.