The Indian peninsula is separated from mainland Asia by the Himalayas. The country is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west, and the Indian Ocean to the south. Stretching 3,287,240 square kilometers, it comprises 28 states and seven union territories. India shares borders with Pakistan, Nepal, China, Bhutan, Myanmar, and Bangladesh. The country is a sovereign, socialist, secular, democratic Republic with a parliamentary system of government. It is among the four fastest-growing emerging economies. The Indian workforce is spread in agriculture and related activities (42.6%), with the rest evenly distributed in the manufacturing and services sectors.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in India.
Indian rupee (₹, INR)
Gesprochene Sprachen :
Hindi and English
1.35 billion (2022 est.)
Differs from state to state, ranging between 372 INR and 853 INR per day.
$ (137 of 139 nations)
Payroll Frequency :
reales BIP-Wachstum :
-7.3% (2020 est.)
The approximate time for sharing the contract with an employee in India is 4 business days assuming no special requests or changes to our standard employment contract.
Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee.
For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.
Adults (those who are 18 years of age or older) cannot work for more than 48 hours per week or nine hours a day. The spread should not exceed 10-12 hours. No worker should work for more than five hours before they have had an interval of rest of at least half an hour.
Where an employee whose minimum rate of wages has been fixed by the hour, by the day, or by such a longer wage period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer pays them for every hour or part of an hour so worked in excess. The rate of pay used is not less than twice the normal rate of wages.
Probation is not mandatory. General practice is three to six months depending on the seniority of the position. During the probation period, the contract can be terminated by either party without notice.
Termination of employment and the notice thereof to be given by the employer and the employee is to be provided under an establishment’s Standing Orders in line with the Industrial Relations Code 2020. The Code does not specify the time of the month for giving notice.
Termination notice differs in individual states ranging from 14 days for employees with less than one year’s service to 30 days. Notice period also varies as per the cause of termination:
Leave entitlement varies across industries and in different states. The Factories Act, which is applicable for most companies, prescribes one day for every 20 days of work, for employees who have worked for 240 days in a given year. Leave entitlement varies across industries and in different states.
Sick leave provides pay to employees when they are out of work due to illness. In India, sick leave varies from state to state. Generally paid sick leave ranges between seven to 15 days per 12 months of continuous service. Where there is no sick leave, employees use casual leave in lieu of sick leave.
Where there is paid sick leave, the pay ranges from half a month’s pay to full pay. An employee is required to submit a medical note with their application for leave.
Qualifying periods for sick leave range between one month and 12 months of continuous service.
Maternity leave is mandatory for the employer to provide, and female employees are entitled to 26 weeks of paid maternity leave. A woman who already has two or more other children is only entitled to 12 weeks of maternity leave, six of which are for prenatal leave. To qualify for maternity leave, the woman must have served the employer for at least 80 days in the 12 months before applying for the leave. A female worker who is on maternity leave is entitled to a medical bonus of 3,500 INR.
There is no legal requirement for private-sector employers to offer paternity leave.
Casual leave is paid leave that is granted for a certain unforeseen situation, including sickness. In most states, employees are also entitled to casual leave that can be taken usually for a maximum of three days in cases of emergency. In some states casual leave is used in lieu of sick leave, in others, it is used to augment sick leave.
Unused casual leave is not carried forward to the following year or 12 months period nor can it be exchanged for cash.
There is no statutory provision for unpaid leave in India. However, the employer may authorize an employee at their discretion.
The ESI scheme applies to all factories and other establishments that employ at least 10 persons. Also, the beneficiaries‘ monthly wage should not exceed 21,000 INR for them to be covered under the scheme. Under the ‘Employee State Insurance Act’, workers are entitled to sick pay at a rate that varies but equates to about 70% of the average daily pay rate for a maximum of 91 days in a year. In order to qualify for sickness benefit, the beneficiary is required to contribute for 78 days in a contribution period of six months.
Funeral expenses of 15,000 INR are also payable to the dependents or to the person who performs the last rites. This benefit is liable for employees from day one of entering insurable employment.
The Personal Injuries (compensation insurance) Fund is paid by the employer. If a personal injury is caused to an employee by accident arising out of and in the course of employment, the employer is liable to pay compensation. The amount of compensation depends on the level of injury.
Employees’ State Insurance Corporation (ESIC) offers two unemployment benefits schemes – Rajiv Gandhi Shramik Kalyan Yojna (RGSKY) and Atal Beemit Vyakti Kalyan Yojna (ABVKY). The RGSKY provides an unemployment allowance equal to 50% of wage for a maximum period of two years to a beneficiary who has become unemployed after being insured for three or more years. The beneficiaries are also extended medical care for self and family from ESI hospitals/dispensaries, vocational training for upgrading skills, and expenditure on fee/traveling allowance.
The ABVKY provides a relief payment of 50% of wages up to 90 days, once in a lifetime. The beneficiary should have been in insurable employment for a minimum period of two years immediately before their unemployment.
The retirement age in India is 60 years.
Retired employees get pension benefits from the Employees‘ Provident Fund Scheme (EPF), the Employees‘ Pension Scheme (EPS), and the Employees‘ Deposit-Linked Insurance Scheme (EDLI).
Gratuity is payable to an employee by the employer on the termination of employment after serving for at least five years or on superannuation, retirement, or resignation, or due to death or disablement due to accident or disease. The completion of continuous service of five years does not apply where the termination of the employment is due to death or disablement.
The Gratuity Act provides for payment of gratuity for every completed year of service or part thereof in excess of six months, at the rate of 15 days’ wages based on the wages last drawn.
Every woman delivered of a child who returns to duty is allowed two breaks of such duration as may be prescribed by the Central Government for nursing the child until the child attains the age of 15 months.
Every establishment with 50 employees (or as prescribed by the Central Government), should have a crèche facility within a prescribed distance. The employer should allow a nursing mother four visits per day to the creche.
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