Hire employees in 180+ countries

Hire international contractor

Find the best candidates for your team

Retain talents with the best benefits

Work visa & permit services

Explore all our add-ons

Our borderless team and our mission

How we accelerate global hiring

Discover our partner benefits

Platform news and annoucements

Our offices around the world

How we keep your data secure

How to hire remote teams

Shape your global hiring strategy

Global hiring cost insights

Calculate employment cost

India Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into India

Setting up and running India payroll

India is one of the fastest-growing and potentially lucrative countries for foreign organizations looking to expand. With a population of well over 1 billion that will soon overtake that of China, a burgeoning education system, and a large number of highly qualified young people, India is an employer’s dream.

But hiring in India can be a complicated and difficult-to-navigate process. The country’s business and employment regulations can be confusing, and progress is often slow, so it is always a good idea to do thorough research and consult experts.

At Horizons, we specialize in helping organizations progress their expansion by providing an efficient system for India payroll outsourcing. Our services are perfect for any organization, whether you already have an entity registered in India or not.

Why choose the Horizons payroll solution?

If you have an entity

Have you already registered an entity in India? We can quickly and efficiently help you to establish and run your India payroll, giving you the option to bypass the complex regulations and compliance work.

This service is a good choice for large-scale businesses and those looking to build a long-term presence in India.

If you don’t have an entity

Are you yet to register an entity in India? We can provide our standard tailored payroll outsourcing, offering the additional use of our India PEO to act as your employer of record.

This service is ideal for any organization looking for a low-risk, flexible, and rapid route into the Indian marketplace.

Hire borderless talent with Horizons

India payroll guide

What are the regulations for tax and withholdings in India?

India follows a progressive income tax model, where employees contribute more to tax as they earn more. The tax rates are set between 0% and 30%, depending on income level. Beyond this, employers may need to contribute to three separate government schemes for employees. These are the Employee Pension Scheme (for government employees), the Employee Provident Fund, and the Employee’s Deposit Linked Insurance fund.

Corporate tax for foreign companies is fixed at a general rate of 40%, and a lower rate of either 25% or 30% for domestic companies.

Entitlements and terminations in India

Any organization employing staff in India should be sure to provide a formal contract of employment detailing the entitlements and terminations terms of each employee, such as maternity leave, vacations, and sick leave.

For terminations in India, notice periods will generally be between 15 and 30 days, and employees of over five years are entitled to severance pay. The usual probation period is between three and six months, depending on the specific contract.

How to establish India payroll outsourcing

To establish India payroll outsourcing, you will need to gather various information about your potential employees. This information includes things like references from previous employers, identifying information, and so on. You should also produce a formal employment contract.

Additionally, you will need to register with the relevant authorities, such as the tax office, and for social security.

Manage payroll in India

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.

India Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into India

Setting up and running India payroll

India is one of the fastest-growing and potentially lucrative countries for foreign organizations looking to expand. With a population of well over 1 billion that will soon overtake that of China, a burgeoning education system, and a large number of highly qualified young people, India is an employer’s dream.

But hiring in India can be a complicated and difficult-to-navigate process. The country’s business and employment regulations can be confusing, and progress is often slow, so it is always a good idea to do thorough research and consult experts.

At Horizons, we specialize in helping organizations progress their expansion by providing an efficient system for India payroll outsourcing. Our services are perfect for any organization, whether you already have an entity registered in India or not.

Why choose the Horizons payroll solution?

If you have an entity

Have you already registered an entity in India? We can quickly and efficiently help you to establish and run your India payroll, giving you the option to bypass the complex regulations and compliance work.

This service is a good choice for large-scale businesses and those looking to build a long-term presence in India.

If you don’t have an entity

Are you yet to register an entity in India? We can provide our standard tailored payroll outsourcing, offering the additional use of our India PEO to act as your employer of record.

This service is ideal for any organization looking for a low-risk, flexible, and rapid route into the Indian marketplace.

Hire borderless talent with Horizons

India payroll guide

What are the regulations for tax and withholdings in India?

India follows a progressive income tax model, where employees contribute more to tax as they earn more. The tax rates are set between 0% and 30%, depending on income level. Beyond this, employers may need to contribute to three separate government schemes for employees. These are the Employee Pension Scheme (for government employees), the Employee Provident Fund, and the Employee’s Deposit Linked Insurance fund.

Corporate tax for foreign companies is fixed at a general rate of 40%, and a lower rate of either 25% or 30% for domestic companies.

Entitlements and terminations in India

Any organization employing staff in India should be sure to provide a formal contract of employment detailing the entitlements and terminations terms of each employee, such as maternity leave, vacations, and sick leave.

For terminations in India, notice periods will generally be between 15 and 30 days, and employees of over five years are entitled to severance pay. The usual probation period is between three and six months, depending on the specific contract.

How to establish India payroll outsourcing

To establish India payroll outsourcing, you will need to gather various information about your potential employees. This information includes things like references from previous employers, identifying information, and so on. You should also produce a formal employment contract.

Additionally, you will need to register with the relevant authorities, such as the tax office, and for social security.

Manage payroll in India

Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.

What to expect when you connect with Horizons

Recruit, hire and pay remote
teams without a local entity

We respect your data, and process it according to our Privacy Policy