Attraverso la soluzione occupazionale Professional Employer Organization (PEO) di Horizons, la nostra entità locale agisce come datore di lavoro dei vostri dipendenti in India. Il nostro team aiuta a identificare e reclutare persone qualificate e gestisce le risorse umane, i salari e la gestione amministrativa dei vostri dipendenti locali.
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Many startups, growing businesses and even larger firms use PEOs throughout the world to take advantage of powerful economic markets while minimizing their liability in these foreign jurisdictions. Comprehensive PEO services allow you to delegate administrative functions like HR and recruiting to a trusted partner.
Your PEO can also handle your payroll and tax compliance matters. You focus on managing the business activities of your staff while we handle the challenging and arduous administrative tasks for you. We deal with complex Indian statutory compliance matters like those described below while you focus on growing your business.
Written employment contracts are highly recommended to clearly establish the legal rights and responsibilities of employers and employees. The contract should contain clear terms regarding the base salary, allowances and the total amount of compensation, which should be stated in Indian rupees.
Many employees in India expect an increase of approximately 10% to 15% per year. This information can be written into the contract.
Working with Horizons will give you access to our employment contracts, which have been approved by local employment and labor organizations.
The typical work week in India is 40 hours. The average work day is 8 hours. Work hours should not exceed 50 hours per work or 9 hours per day. Indian workers are entitled to at least 10.5 hours between work days.
Expecting mothers are entitled to 26 weeks of maternity leave. They can begin taking maternity leave up to eight weeks before the expected delivery date and the remainder can be used after childbirth. They are also entitled to a medical bonus of 3,500 Indian rupees. If the employee is classified at the factory leave, this leave is paid by the government’s social funds. Otherwise, the employer is responsible for payment of the maternity leave.
India does not mandate paternity leave. However, some employers offer it as a benefit.
When negotiating allowances in India, it is important to have a fundamental understanding about the typical Indian negotiation strategy. Indian companies are hierarchical in nature, so negotiations may be slower than other countries, especially if a business relationship is not already in place. Indian natives may be more likely to communicate indirectly, so they may not say “no” and may instead use terms such as “possibly” or “perhaps.”
Job titles are also important to people in India. Greater titles command greater respect in the culture in many cases, so keep this in mind when negotiating contracts in India.
Indians may negotiate for a variety of allowances in order to maximize the amount of their take-home pay. These allowances are pretax, and many allowances may make up 60% of the total compensation package.
|House rent||This allowance helps pay for the rent on a home in India. It is typically paid out on a monthly basis and may be tax-free, depending on certain conditions.|
|Leave travel||This type of allowance allows for occasional vacations. This allowance is usually paid out on an annual basis or every other year.|
|Vehicle||A vehicle allowance is provided to maintain a vehicle. This allowance is typically paid out on a monthly basis and is taxable. It is usually only provided to top executives or sales or marketing team members.|
|Children education||This allowance consists of 100 per child per month for one or two children.|
|Children hostel||This allowance provides up to 300 per child for month for one or two children.|
|Phone allowance||Employees may negotiate for this allowance to pay for their landline or cell phone. It is usually taxable.|
|Special allowance||* This catchall category may provide an additional taxable, monthly allowance.|
In addition to these allowances, some Indian workers may receive incentives and bonuses that are paid out based on performance. They are taxable.
Because the various components of a compensation package can be complex and can be affected by whether they are taxed or tax-free, many foreign companies prefer to provide a gross amount of compensation and let their PEO decide on how to structure the compensation package in an attractive and tax-efficient manner.
India’s tax system requires employers in India to contribute to the Employee Provident Fund, the Employees’ Deposit Linked Insurance Scheme. and the Employee Pension Scheme for government employees.
The Employee Provident Fund is a savings program that helps provide retirement benefits and a pension to employees. Employers contribute 3.67% of the employee’s salary to this fund while employees contribute 12%. Additionally, employers contribute another 9.94% to other social insurances. This rate is calculated on the employee’s base salary, excluding all allowances.
Income tax is imposed on the employee’s salary, according to the following structure:
India provides probationary periods. Three months is typical, which is the maximum initial probationary period. However, the employer can extend this period for up to three more months.
During the probationary period, there is a 15-day notice that the employer or employee must give in writing if they desire to end the employment relationship.
Additionally, if the employee has served for five or more continuous years, they may be entitled to a gratuity payment that is equal to their last drawn salary multiplied by 15/26 and the number of years of service.
The PEO services that you receive are structured around the needs and objectives of your business. Services may include: