Country overview
India
India's four labour codes took effect on 21 November 2025, replacing 29 central labour laws. Minimum wages are still fixed by states, and a central floor wage has not yet been notified.
South Asia
How minimum wage works here
State-set, and often split by zone and skill level (e.g. Telangana Zone I for Hyderabad). Under the Code on Wages (Central) Rules 2026, minimum wages are fixed as daily rates.
Cities
Employer contributions
EPF + EPS (Provident Fund & Pension)
Employer 12% (3.67% EPF + 8.33% EPS) on PF wages up to ₹25,000/month (ceiling raised from ₹15,000 on 17 Sep 2026)
EDLI and EPF admin charges apply on top; rates not yet verified here. Employees already contributing on higher wages may continue to.
Source: Ministry of Labour & Employment gazette notification, 17 Sep 2026Last checked Oct 2026EDLI & admin charges
Coming soonEDLI and admin charge rates pending verification.
Last checked Oct 2026ESIC (Employees' State Insurance)
Employer 3.25% / employee 0.75% of wages, for employees earning up to ₹21,000/month
Wage ceiling per ESIC Standard Note as on 01.01.2026 (₹25,000 for persons with disability).
Source: ESIC – ContributionLast checked Oct 2026
Labour codes in effect since 21 Nov 2025
Four labour codes (Wages; Industrial Relations; Social Security; Occupational Safety, Health & Working Conditions) effective 21 November 2025
Source: Press Information Bureau, 21 Nov 2025Last checked Oct 2026Uniform definition of 'wages': if excluded allowances (HRA, conveyance, etc.) exceed 50% of total pay, the excess counts as wages for PF, gratuity and other statutory calculations
Source: Ministry of Labour & Employment – FAQs on Labour CodesLast checked Oct 2026Fixed-term employees become eligible for gratuity after 1 year of continuous service (previously 5)
Source: Press Information Bureau, 21 Nov 2025Last checked Oct 2026Mandatory appointment letters for all workers; IT/ITES salaries must be released by the 7th of each month; women may work night shifts with consent and safeguards
Source: Press Information Bureau, 21 Nov 2025Last checked Oct 2026No national floor wage amount has been notified yet; the Code on Wages (Central) Rules 2026 set out how it will be fixed
Source: Code on Wages (Central) Rules, 2026 (PRS India)Last checked Oct 2026
13th-month pay
No statutory 13th-month pay. A statutory bonus regime exists under the Code on Wages, 2019; eligibility thresholds and rates are not yet modeled here.
Statutory bonus
Statutory bonus eligibility and rates under the Code on Wages pending verification.
Internet
Ookla Speedtest Global Index
Country median (Aug 2026): fixed 63.94 Mbps down / 58.38 up; mobile 128.20 Mbps down / 10.10 up
Country-level median, not city-specific.
Public holidays 2026
Three national holidays (26 Jan, 15 Aug, 2 Oct) plus state-notified festival holidays. State lists for Karnataka, Tamil Nadu and Telangana pending verification.
Power
Awaiting firsthand field notes and an official grid-reliability source.
Entity setup basics
Most offshore teams use a Private Limited Company incorporated through the MCA SPICe+ form: at least 2 directors and 2 shareholders, with at least one director resident in India (182+ days in the financial year). IT/ITES generally allow 100% FDI under the automatic route.
FDI inflows carry RBI reporting requirements (e.g., FC-GPR).
Typical steps
- Name reservation and incorporation via SPICe+ (MCA)
- PAN / TAN issued with incorporation
- GST registration if applicable
- State Shops & Establishments registration
- EPFO and ESIC registration
Timeline and cost
Realistic timeline and cost to come from field notes.
EOR / payroll coverage
| Provider | EOR status | Link |
|---|---|---|
| Deel | Listed | Provider page |
| Remote | Listed | Provider page |
| Multiplier | Listed | Provider page |
Based on each provider's public country page. Confirm coverage, pricing and entity model directly before signing. No affiliate links.
Last checked Oct 2026