GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in India
Access local or international talent in India, support customers and build market presence without waiting for entity set-up. Acumen acts as your Employer of Record, allowing you to scale the team around demand rather than around the timetable for incorporation.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in India through an Employer of Record
An Employer of Record arrangement separates the company that employs a person from the company they work for, and two contracts hold it together. The employment contract is between Acumen International and the employee: under it, Acumen International is the legal employer, answerable to the employee, the Indian authorities and the courts for every obligation that comes with employing someone in India. The service agreement is between Acumen International and your business: under it, your business receives the employee’s services, directs their work day to day, owns what they produce and funds the cost of employment together with Acumen International’s fee.
For a company with no Indian entity, this is the established way to have people working in India as genuine employees. They hold Indian employment with all the protection the law gives them, and your business gains a team in India without taking on the registrations, filings and legal exposure of becoming an Indian employer itself.
Acumen International employs in 190+ countries, so an Indian team can grow in step with hiring elsewhere. Engineers in Bengaluru or Hyderabad, analysts in Pune and a sales lead in Mumbai can join while colleagues are added in the UK, the UAE, Singapore or the United States, each under the law of the country where they work and all through one provider. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves an India hire
- Contractor compliance. Long-term consultants working only for your business in India become employees, with provident fund and tax handled through payroll.
- One accountable provider. Appointment letters, payroll, statutory contributions, state-level registrations and visas sit with a single provider.
- No entity to set up or maintain. You employ in India without incorporating a private limited company, meeting its filing calendar or appointing resident directors.
- Market tests and short-term projects. A pilot team or a time-bound project in India is staffed, then expanded or wound down on results.
- Bridge to your own entity. The first hires start with Acumen International and move to your Indian company once it is ready to employ.
- Fast team launch. Indian professionals begin on Acumen International’s appointment letters while visas for expatriate leads are processed.
- Mergers and restructuring. Staff in India keep continuous service while the group structure above them changes.
- NGO staffing. International organisations employ programme and technical staff across Indian states on compliant local terms.
- Employer liability. Acumen International carries the obligations that labour inspectors, the EPFO and the tax authorities enforce against the employer.
- Remote team expansion. Team members living anywhere in India join your distributed team with Indian employment terms and statutory cover.
Employing for another business in India: the legal basis and its limits
On 21 November 2025 India brought four labour codes into force: the Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code. Together they replace 29 central labour laws and override any contract, policy or settlement that conflicts with them. Acumen International employs your team under the codes and provides their services to your business under a commercial agreement. What frames the arrangement:
- Two categories of staff. Every “employee” is covered by the codes, including managerial and administrative staff, but the narrower group of “workers” excludes managers and supervisors earning above INR 18,000 a month. Most retrenchment and dispute protections attach to workers, so senior contracts carry the exit terms themselves.
- Contract labour rules. Where your business has its own Indian establishment, engaging 50 or more workers through a contractor brings licensing duties, and contract labour may not be used in core activities except where the codes allow it.
- State rules still matter. Each state issues its own rules under the codes and keeps its shops and establishments law, which governs hours, leave and holidays for office staff. Until a state’s new rules are final, its existing rules apply where they are consistent with the codes.
What Acumen International handles in India, from recruitment to exit
| Stage | What it involves in India |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Employment visa | Sponsorship of a foreign hire and registration with the Foreigners Regional Registration Office |
| Appointment letter | The written appointment letter the codes now require, with designation, wages and social security entitlements |
| Registrations | Provident fund, ESI where it applies, and the state’s professional tax and shops and establishments requirements |
| Payroll | Monthly salary in rupees, tax deducted at source and statutory contributions |
| Year-end | Annual tax certificates for employees and quarterly tax deduction returns |
| Exit | Notice, statutory payments, full and final settlement and the gratuity calculation |
Indian salary structure and wage payment rules
Indian pay is usually quoted as annual cost to company and split into basic pay and allowances such as house rent allowance. The Code on Wages changed how that split works:
- The 50% rule: excluded allowances above half of total remuneration are added back to wages, so provident fund, gratuity and other wage-linked amounts are calculated on at least half of the package.
- Minimum wages: each state sets rates by skill level and area, and none may fall below the national floor wage the central government fixes. Professional salaries sit far above these rates.
- Pay dates: monthly wages are due by the seventh day of the following month, and no salary ceiling limits who this protects.
- Final pay: wages owed on resignation, dismissal or retrenchment are paid within two working days, and the code limits the deductions an employer may make from them.
- Equal pay: the code forbids discrimination in pay and recruitment on grounds of gender, including transgender identity.
The Global Payroll Calculator shows the employer cost and take-home pay of an Indian salary under these rules before an offer is made.
Appointment letters, fixed terms and working hours in India
| Topic | What the codes provide |
|---|---|
| Appointment letter | Mandatory for every employee, in the prescribed form, stating designation, category, wages and social security entitlements |
| Fixed-term employment | Allowed for any role, with pay, hours and benefits equal to permanent staff in the same work and statutory benefits pro rata |
| Probation | Not fixed by the codes; it is set in the appointment letter and any applicable standing orders |
| Working hours | No more than 8 hours a day or 48 a week, with longer days possible over a four- or five-day week by consent |
| Overtime | Twice the ordinary rate of wages, within limits each state sets |
| Night work for women | Permitted in all establishments with the employee’s consent and the safety and transport measures the codes require |
| Remote work | Recognised for service-sector roles under the model standing orders, on terms agreed with the employer |
Notice, retrenchment and gratuity in India
How an Indian employment ends depends on whether the person is a “worker” under the Industrial Relations Code or a manager outside that group.
| Workers | Managerial and senior staff | |
|---|---|---|
| Notice | One month’s written notice with reasons, or wages in lieu, for retrenchment | As set in the appointment letter, subject to the state’s shops and establishments law |
| Retrenchment compensation | 15 days’ average pay for each completed year of service | As agreed in the contract |
| Reskilling fund | 15 days’ last-drawn wages per retrenched worker, paid into the government fund | Not applicable |
| Government permission | Required for retrenchment in factories, mines and plantations with 300 or more workers | Not applicable |
- Gratuity: 15 days’ wages for each completed year of service, due after five years, or after one year for a fixed-term employee, up to INR 20 lakh.
- Fixed-term expiry: a fixed-term contract that runs its course is not a retrenchment, though ending one early can be.
- Exit documents: relieving and experience letters, the employee’s tax certificate and the provident fund exit are handled with the final settlement.
Employment risks in India and how Acumen International mitigates them
| Risk | Where it arises in India | How Acumen International mitigates it |
|---|---|---|
| Worker misclassification | Indian authorities look at control and integration; a full-time consultant under your direction attracts provident fund, gratuity and tax claims | Each person is employed on an appointment letter with statutory contributions from the start |
| IP ownership | Copyright in work made under a contract of service belongs to the employer only as the contract allows, and inventions need express assignment | Appointment letters assign IP to Acumen International, which passes it to your business |
| Client liability for pay and contributions | Under the contract labour rules, a principal employer with an Indian establishment answers for unpaid wages of contract staff | Acumen International pays wages and contributions on the statutory dates and keeps records for inspection |
| Equal pay for assigned staff | The Code on Wages bars pay discrimination on gender, and fixed-term staff must match permanent colleagues | Pay is benchmarked against comparable roles on objective criteria |
| Permanent establishment | Staff who habitually conclude contracts or provide services in India for a foreign company can create a taxable presence | Roles and authority are defined so that contracting stays with your company |
| Exit cost | Retrenchment compensation, reskilling fund contributions, gratuity and contractual notice | Acumen International calculates every exit payment before any decision |
| Sponsor obligations | An employment visa is tied to the sponsoring employer and registered with the FRRO | Acumen International sponsors as employer, keeps registrations current and reports changes |
Indian employment visas for foreign professionals
India admits foreign employees for skilled roles and screens out ordinary ones. An employment visa is issued to a foreign national sponsored by an organisation registered in India, on these conditions:
- Salary floor: pay above US$25,000 a year, with narrow exceptions such as ethnic cooks, foreign-language teachers and embassy staff.
- Skilled work only: routine, ordinary, clerical and secretarial jobs do not qualify, and the role should be one that qualified Indians are not available to fill.
- Validity: an initial visa of up to a year, which can be extended in India year by year, generally up to five years in total.
- Registration: a visa holder staying more than 180 days registers with the Foreigners Regional Registration Office within 14 days of arrival, online through the e-FRRO system.
What Acumen International contributes
- An Indian sponsor for your expatriate. The visa needs a sponsoring organisation registered in India, and Acumen International provides it as the employer, so your specialist comes to India without your business incorporating there.
- An offer that clears the threshold. Salary is set above the US$25,000 floor and the role is documented as specialist work, meeting both core conditions.
- Registration and extensions on schedule. FRRO registration is completed within 14 days, and each annual extension is filed with the employment and tax records it requires.
- Provident fund treated correctly. Foreign employees are enrolled as international workers, or exempted where a social security agreement and certificate of coverage apply.
Family members
A spouse and dependent children travel on entry visas linked to the employee’s visa and its validity. A family member who wants to work in India needs an employment visa of their own.
Provident fund, ESI and salary tax in India
Statutory contributions
| Scheme | Employer | Employee | Applies to |
|---|---|---|---|
| Employees’ Provident Fund | 12%, part of it to the pension scheme | 12% | Wages up to INR 15,000 a month as the statutory base; contributions on higher pay are optional, except for international workers |
| Employees’ State Insurance | 3.25% | 0.75% | Employees earning up to INR 21,000 a month |
| Professional tax | — | Up to INR 2,500 a year | Employees in states that levy it |
Foreign nationals working in India are “international workers” and contribute on their full salary with no ceiling, unless a social security agreement exempts them. India’s agreement partners include Germany, France, Japan and South Korea.
Income tax
From 1 April 2026 salary tax falls under the Income-tax Act, 2025, which replaced the 1961 Act and introduced a single “tax year”. The employer deducts tax every month and deposits it by the seventh of the following month. Under the default new regime the rates for 2026–27 are:
| Annual taxable income | Rate |
|---|---|
| Up to INR 4 lakh | Nil |
| INR 4–8 lakh | 5% |
| INR 8–12 lakh | 10% |
| INR 12–16 lakh | 15% |
| INR 16–20 lakh | 20% |
| INR 20–24 lakh | 25% |
| Above INR 24 lakh | 30% |
Salaried employees deduct a standard INR 75,000, a rebate removes tax on income up to INR 12 lakh, a 4% health and education cess applies, and surcharges start above INR 50 lakh. Employees may instead choose the old regime, with its deductions and exemptions.
Industries hiring through an Employer of Record in India
- Software, SaaS and engineering services: developers, architects, QA and product teams in Bengaluru, Hyderabad, Pune and Chennai.
- Global capability centres: finance, analytics, risk and shared-service specialists for multinational groups.
- Pharmaceuticals and life sciences: regulatory, clinical and quality professionals serving international markets.
- Manufacturing and electronics: engineering, supply chain and quality leads as production shifts into India.
- Financial services and fintech: compliance, risk and product specialists in Mumbai and the GIFT City financial centre.
- Consulting and professional services: sales, delivery and account leaders for clients across India.
Hiring cases in India
| Case | What Indian rules add | How Acumen International handles it |
|---|---|---|
| A UK software company with no Indian entity builds an eight-person engineering team in Bengaluru | Appointment letters, the 50% wage rule for provident fund and gratuity, monthly tax deduction and Karnataka’s state requirements | Acumen International employs the team on compliant salary structures, runs payroll and contributions and assigns their IP to the client, which gains an Indian team without setting up a company |
| A German manufacturer sends a plant engineering lead to Pune for three years | An employment visa above US$25,000 a year, FRRO registration within 14 days, and provident fund on full salary unless a German certificate of coverage applies | Acumen International sponsors the visa, completes registration, applies the India–Germany agreement to his contributions and extends his visa each year |
| A fintech hires a Mumbai head of compliance on a two-year fixed term | Fixed-term staff receive equal terms and gratuity after one year | Acumen International issues a fixed-term letter with parity terms and accrues gratuity from the first year, keeping the client’s costs predictable |
| A US client closes a five-person analytics team in Hyderabad | Retrenchment compensation and notice for workers, contractual terms for managers, gratuity and two-day final settlement | Acumen International classifies each role, calculates every payment and settles all dues within two working days, closing the team without disputes |
Employee benefits and leave in India
Skilled candidates in India compare packages closely, and benefits often decide between offers. Typical additions are group medical insurance extended to spouse, children and parents, term life and accident cover, employer contributions to the National Pension System, which are tax-efficient for employees, and meal or wellness allowances. Acumen International builds each package around the role and the city.
| Leave | Entitlement |
|---|---|
| Annual leave | One day for every 20 days worked, once the employee has worked 180 days in the year; state shops and establishments laws often set more for office staff |
| Public holidays | Republic Day, Independence Day and Gandhi Jayanti nationally, plus festival holidays fixed by each state |
| Sick and casual leave | Set by the state shops and establishments law and the employer’s policy |
| Maternity leave | 26 weeks for the first two children and 12 weeks after that, with 12 weeks for adoptive and commissioning mothers |
| Health check-ups | A free annual health check-up for employees, under the safety code |
Sources
- Occupational Safety, Health and Working Conditions Code factsheet
- FAQs relating to work related visas issued by India
- Foreigners registration brochure
- Brochure on international workers
- Income-tax Act, 2025: section 202
- Two working days: Code on Wages and employee’s final settlement
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can Acumen employ both blue-collar and white-collar roles in India?
Not necessarily. Acumen can assess both professional and operational roles in India, including technical, field and site-based positions. Feasibility depends on the worksite, sector rules, health and safety responsibilities, licensing, collective terms and immigration requirements attached to the role.
What if someone working for us in India looks more like an employee than a contractor?
If the working relationship is employee-like, continuing to label it as independent contracting can create risk. Acumen can assess whether formal EOR employment in India is suitable and, if so, onboard the individual as an employee. This is not a retroactive reclassification service.
Can the employment contract in India protect our confidential information and IP?
Yes. Employment documentation can include confidentiality and IP provisions tailored to the role and to India. The wording must follow local rules on employee-created works, inventions and assignment, so Acumen does not simply reuse one global clause everywhere.