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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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Currency

₹ (INR)

Work Hours

48/week

India, officially known as the Republic of India, is the second most populous country in the world and also one of the world’s largest economies. Hindi and English are the primary languages in India. This South Asian country relies heavily on agriculture as its economic backbone. Telecommunications, chemical, and biotechnology industries are gaining ground and helping the country diversify and strengthen its economy. The country has also enacted pro-business policies to encourage foreign investment.

An employment contract in India may be verbal or written. Employment contract terms include:

  • work location,

  • salary,

  • annual leave,

  • work hours,

  • overtime,

  • conditions for termination,

  • notice period,

  • probation period, and

  • dispute resolution procedures.

The standard work week in India is 48 hours. The workday is up to nine hours. The employer must pay double the employee’s regular hourly wage for overtime hours. Employees must receive at least one day off each week.

Sick leave is predominantly determined by company policy and state laws. Statutory sick leave provisions vary from industry to industry and range from 15 to 40 days. The best practice is to outline the terms and conditions of sick leave in contract documents. 

An employee having her first or second child is entitled to 26 weeks of maternity leave in India beginning eight weeks before the expected due date. If the employee already has two or more biological children, she receives 12 weeks of paid maternity leave. Employers with 10 employees or more are required to pay employees on maternity leave.

India has thousands of minimum wages that vary by region, industry, job and seniority. Employers with at least 20 employees must pay a 13th month salary.

Employees receive one day of paid vacation leave in India for every month of service. Up to 30 days of accrued but unused leave can be carried over.

In India, the public holidays are:

  • Republic Day

  • Labor Day

  • Independence Day

  • Gandhi Jayanti

  • Christmas Day

India has universal healthcare for its citizens. Employers do not have to offer private health insurance although some employers do offer this benefit.

Employees who have worked for at least one year must be given written notice to terminate their contracts. The duration of notice period depends on the number of employees in the establishment and reason for termination:

  • Establishments with at least 50 employees - 1 month

  • Closure of establishment with at least 50 employees - 60 days

  • Establishments with at least 300 employees - 3 months

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into India can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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