Hire employees in India

Hire employees in India

This article can be useful if you are interested in hiring Indian workers for your international company. India has a population of over 1.4 billion and boasts a wealth of talented individuals. Whether you plan to hire employees in India or have an existing employee who wants to relocate to India, this article can help you get started.

Why India is a popular destination for hiring employees?

India is one of the world’s fastest-growing economies, backed by a strong democracy and excellent relationships with other developed countries.

Hiring employees in India has become increasingly common in recent times. This trend has been driven by the rise of remote work culture and the increasing need for companies to access global talent. Indian workers, with their strong work ethics and proficiency in English, are highly sought after by international employers.

Another factor that makes India an attractive destination for hiring employees is the cost savings. The cost of living in India is relatively low compared to many Western countries, which translates into lower labor costs for businesses. This cost advantage is particularly attractive for start-ups and small businesses.

However, hiring employees in India comes with its own set of challenges. International companies need to be aware of the legal and regulatory framework governing employment in India. Compliance with Indian law is crucial to avoid legal and financial risks. If you're considering hiring remote employees or setting up an office in India, it's essential to understand the legal and regulatory requirements to ensure a smooth and successful transition.

One platform to grow your global team

Hire and pay talent globally, the
hassle-free way

Talk to an Expert

Where to find and hire employees in India?

Here are some popular websites where you can find and hire employees in India:

  1. Naukri.com - This is one of the largest job boards in India, with a database of millions of job seekers. You can post job ads, search for candidates, and even extend job offers through the platform.
  2. LinkedIn- LinkedIn is a popular platform for professionals in India. You can use it to post job ads, search for candidates, and connect with potential hires.
  3. Indeed- Indeed is a global job board with a significant presence in India. You can post job ads, search for candidates, and receive applications directly through the platform.
  4. Foundit- This is a popular job board that allows you to post job ads, search for candidates, and receive applications. It also offers additional features like resume search and candidate screening.
  5. Glassdoor- Glassdoor is a job board that also offers company reviews and ratings. You can use it to post job ads, search for candidates, and get insights into potential hires.
    Apart from these websites, another seamless way to hire remote employees in India is by partnering with an Employer of Record (EOR) or a Global Professional Employment Organization (PEO) platform such as Skuad.

What to look for when hiring employees in India

When hiring employees in India, there are a few key factors to keep in mind to ensure a successful hiring process.

  • Firstly, consider the cultural differences and ensure that your hiring process is respectful and culturally appropriate for the Indian workforce.
  • Secondly, remember that India has a diverse pool of talent, with professionals from various backgrounds and skill sets. Be specific about the skills and qualifications you're looking for when advertising job vacancies.
  • If you're looking to hire remote workers, ensure that you have clear communication channels and technology infrastructure in place to support them.
  • Finally, keep in mind that international employees may require additional support and resources, such as visa assistance or cultural training. Make sure to provide these resources to ensure a smooth transition and successful employment.

Overall, hiring Indian professionals can bring significant benefits to your company. With their strong work ethic, proficiency in English, and diverse skill sets, they are highly sought after by international employers. By keeping these key factors in mind, you can ensure a successful hiring process and find the right talent to support your business growth.

Cultural considerations to keep in mind when working with Indian employees

When working with Indian employees, it is essential to understand and respect the cultural differences that may impact communication, collaboration, and work dynamics. Here are some cultural considerations to keep in mind:

Communication styles

Indian workers may have different communication styles and preferences, with a greater emphasis on relationship-building and indirect communication. This can be important to keep in mind for foreign employers working with Indian workers.

Holidays and festivals

Holidays and festivals vary across India's regions and religions. Employers should be aware of these holidays and be respectful of employees who observe them. This can be especially important for foreign employers working with Indian workers.

Hierarchical structure

Indian society has a hierarchical structure where people give respect to elders and authority figures. Therefore, Indian developers may not feel comfortable openly questioning or challenging their superiors' decisions. As a result, you may need to create a safe and supportive environment where they can freely express their opinions and ideas.

Time management

Indian culture places a high value on punctuality and time management. However, sometimes delays can occur due to traffic or other unforeseen circumstances. Therefore, it is crucial to be flexible and understanding of such situations.

Religious and cultural sensitivities

India is a diverse country with many religions and cultures. Therefore, it is essential to be mindful of religious and cultural sensitivities when interacting with Indian employees. For example, some Indians may not consume beef due to religious beliefs, while others may prefer vegetarian food.

Overall, by being aware of these cultural considerations and actively working to build strong relationships with your Indian colleagues, you can create a collaborative and respectful work environment that benefits everyone.

Tips to conduct interviews and assessments of employees in India

1. Plan ahead

  • Understand the legal requirements and regulations around employment in India.
  • Determine the specific skills, qualifications, and experience required for the role.
  • Establish a clear and effective hiring process.

2. Be culturally sensitive

  • Be mindful of the diverse cultural norms and customs in India.
  • Avoid any actions or questions that may cause offense or misunderstanding.
  • Treat candidates with respect and dignity throughout the hiring process.

3. Test practical skills

  • Conduct practical assessments that evaluate the candidate's skills and abilities relevant to the job.
  • Ensure the assessments are objective, fair, and aligned with the requirements of the role.
  • Use technology and tools to facilitate remote testing if necessary.

4. Check references

  • Request and verify references from previous employers or professional contacts.
  • Use reference checks to confirm the candidate's qualifications, work experience, and performance.
  • Follow up on any red flags or concerns that arise during the reference check process.

5. Be transparent

  • Provide clear and accurate information about the job role, salary, benefits, and working conditions.
  • Communicate openly and honestly with candidates about the hiring process, timeline, and expectations.
  • Ensure that all candidates receive equal treatment and are evaluated based on their qualifications and abilities.

6. Provide feedback

  • Provide timely and constructive feedback to candidates throughout the hiring process.
  • Offer feedback on their performance during assessments, interviews, and other stages of the process.
  • Communicate clearly and respectfully, even if the candidate is not selected for the role.

Best practices for managing Indian employees

1. Foster a positive work culture

  • Promote a culture of respect, trust, and transparency within the workplace.
  • Recognize and reward employee contributions and achievements.
  • Encourage open communication and collaboration among employees.

2. Provide regular training and development opportunities

  • Offer regular training and development opportunities to help employees improve their skills and knowledge.
  • Provide cross-functional training to help employees gain exposure to different areas of the business.
  • Encourage employees to pursue certifications or advanced degrees to enhance their career prospects.

3. Encourage work-life balance

  • Promote work-life balance by offering flexible work arrangements and paid time off.
  • Offer wellness programs and resources to support employee health and well-being.
  • Encourage employees to take breaks and disconnect from work outside of office hours.

4. Embrace technology

  • Leverage technology to streamline HR processes and improve employee productivity.
  • Use collaboration tools to facilitate communication and knowledge-sharing among employees.
  • Implement digital solutions to automate administrative tasks and reduce paperwork.

5. Set clear expectations

  • Communicate clear performance expectations and goals for each employee.
  • Provide regular feedback and coaching to help employees improve their performance.
  • Recognize and reward employees who meet or exceed expectations.

6. Encourage teamwork and collaboration

  • Foster a culture of teamwork and collaboration by encouraging employees to work together on projects.
  • Promote cross-functional collaboration to drive innovation and problem-solving.
  • Provide opportunities for team building and socializing outside of work.

Payroll contributions and filing taxes in India

One of the biggest challenges employers face is the complex payroll regulations and taxes system in India. Employers are required to make contributions to several different schemes, including employee pension schemes, employee deposit-linked insurance schemes, and employee provident funds (EPFs).

The Employees Provident Fund is a retirement savings scheme that was established to provide financial security for workers whose salaries are below a certain threshold. Both employees and employers are required to contribute the same amount, which is typically 12% of the employee's base salary. Employers who are unable to contribute the required amount to the EPF may face fines and penalties. This can be a significant burden for small businesses, which may struggle to meet their financial obligations.

In addition to the EPF, employees in India are also required to pay income tax on their earnings. The minimum wage in India varies by state and industry, and many workers earn wages that are below the taxable threshold.

While these payroll regulations and taxes can be a challenge for employers in India, they are important for ensuring that workers can save for retirement and have access to financial security. By understanding these regulations and making sure that they comply, employers can help their employees to thrive both now and in the future.

Work hours, overtime pay, and paid time off in India

Work hours: Work hours in India are governed by Indian employment law, which specifies that the maximum number of work hours per week is 48. Local regulations may further restrict work hours in certain industries or for certain types of workers. Employers need to ensure that their employees are not working more than the maximum allowed hours and that they are being paid for all hours worked, in compliance with Indian minimum wage laws.

Overtime pay: Under Indian employment law, overtime pay is required for any work beyond the normal work hours. The rate of overtime pay is typically 1.5 times the employee's regular hourly wage. Employers must ensure that they are properly calculating and compensating their employees for any overtime work.

Paid time off: Paid time off in India is not mandated by law, but it is common for employers to provide their employees with paid vacation days, sick leave, and other types of leave. The amount of paid time off may vary depending on the employer and the employee's compensation package.

Foreign companies operating in India should ensure that they are providing their Indian workers with comparable benefits to those provided to their employees in other countries, to ensure fair and competitive compensation.

Common employee benefits in India

Health insurance

Health insurance is a common employee benefit in India, with many employers offering coverage for employees and their dependents.

Employees' pension scheme

The Employee Pension Scheme is a government-mandated benefit in India, requiring employers and employees to contribute to a retirement savings account.

Maternity leave

Maternity leave is mandated by law in India, with female employees entitled to up to 26 weeks of paid leave.

Sick and casual leave

Sick and casual leave are common benefits offered by employers in India, with the amount of leave typically increasing based on the length of an employee's tenure.

Paternity and parental leave

Paternity and parental leave are becoming increasingly common in India, with many companies now offering paid leave for new fathers and extended leave for new parents

Stipends and other perks

Stipends and other perks, such as company-provided meals, transportation, and other amenities, are often provided by Indian employers as a way to attract and retain top talent.

Special protection for female employees in India

Special protections for female employees are mandated by law in India, including protections against harassment and discrimination, and provisions for maternity leave and flexible work arrangements.

Public holidays

There are around 10-14 public holidays in India, with many employers providing paid time off for these holidays.

Employment laws in India

The Indian employment law system has over 40 federal acts and 200 ministerial and state acts. These laws are essential in protecting the employees' interests and regulating the market. However, due to the laws’ complexity, the information provided below serves as a guide when hiring in India.

  1. The Employees Provident Funds & Miscellaneous Provision Act, 1952

This Act guides the provisions of provident funds, pension funds, and insurance for employees in India.

  1. The Industrial Disputes Act, 1947

The Industrial Disputes Act makes provisions for investigating and settling work disputes. It also protects employees from unfair layoffs.

  1. The Maternity Benefit Act, 1961

This Act governs and regulates women’s employment before and after childbirth and for the provision of maternity benefits.

  1. Indian Contract Act, 1872

The Indian Contract Act prescribes the law that relates to contracts and determines the circumstances in which promises made by the parties to a contract shall be legally binding.

Partner with Skuad to discover and hire employees in India

Partner with Skuad's recruitment and talent discovery experts to tap into a pool of exceptional talent for your business in India. Our team is dedicated to helping you identify the right talent for your business – starting at just $299 per employee, per month.

Skuad is a fast-growing global employment and payroll platform, enabling companies like yours to hire, pay and manage exceptional talent in India. Experts at Skuad will help you navigate the complex employment laws of the country and protect you from expensive fines, penalties and lawsuits.

To know more about Skuad, book a demo today!

Frequently Asked Questions

How can I hire someone from India?

To hire talent from India, businesses must open a local entity in India which is time-consuming, expensive and tedious. Another feasible option is to partner with an Employer of Record platform to hire, pay, and manage talent in India compliantly.

How do US companies pay employees in India?

To pay employees in India, the first option is to open a local legal entity in India which is time-consuming, and expensive and businesses must find and set up payroll providers and vendors for all the employee benefits. However, most businesses hiring in India choose to work with an employer of record, such as Skuad. A global EOR can hire and pay your workers in India on your behalf, so you do not have to open your legal entity.

Can a foreign company hire employees in India without an office? 

Yes, a foreign company can hire employees in India without having a physical office through the use of an Employer of Record (EOR) service. The EOR acts as the official employer of the hired employees, taking on all the legal and administrative responsibilities, while the foreign company manages their day-to-day activities and work.

Looking to hire employees and contractors in another country? Skuad's EOR platform can help!

Talk to our EOR experts
start hiring