# How to Onboard an Employee in India: Every Step From Offer Letter to First Payroll
How to onboard an employee in India from start to finish, from the decisions you make before day one through the five business days of onboarding and the legal deadlines to the first monthly payroll.
- Applies to: Employer of Record hires in India, for US and UK companies
- Status: Live
- Verified: 2026-10-29
- Canonical page: https://versatile.club/docs/onboarding/
You have chosen a candidate in India and need to know what happens before their first payroll. How to onboard an employee in India follows one fixed sequence. Onboarding employees in India means you choose the legal route and agree the terms. The employer issues the appointment letter and contract, registers the employee for PF and ESI, then runs the first payroll. Skip a step and the start date slips, or a filing gap turns up months later.
Versatile Club is an India-only Employer of Record (EOR). Its Employer of Record (EOR) service employs your hire on its own Indian company, Foo Falcon Technologies Pvt Ltd. With us as the employer, the sequence takes five business days, from the signed service agreement to your hire being active on payroll.
If you lead People Ops and your first India hire starts next month, this page is your map. It lays out every stage in order, what Indian law requires at each one, and the guide that covers it in depth.
## How to onboard an employee in India: the sequence at a glance {#at-a-glance}
| Stage | What happens | Who acts |
|---|---|---|
| **Before Day 1** | You choose the hiring route, the salary and the start date | Your company |
| **Day 1** | Service agreement signed, with the five-day onboarding written into it | Your company and the EOR |
| **Day 2** | India-compliant offer letter sent to your candidate | The EOR |
| **Day 3** | Employment contract signed with the EOR's Indian company, documents collected | Your hire and the EOR |
| **Day 4** | PF, ESI and professional tax started for the employee | The EOR |
| **Day 5** | Employee active on payroll | The EOR |
| **Every month after** | One USD invoice, a payroll summary, a compliance status, challan confirmations and TDS receipts | The EOR, to you |
So the short answer is five business days of onboarding, plus whatever notice your candidate owes a current employer. The [five-business-day onboarding guide](https://versatile.club/docs/onboarding/onboard-an-employee-in-five-days/) walks through Days 1 to 5 one at a time, with a dated example.
## Before day one: what only you can decide {#before-day-one}
Before the EOR can start, you settle three things: the route, the salary, and the place and date. Onboarding starts from your decisions, not from a form.
### Choose the hiring route {#choose-route}
Three routes exist: hire through an Employer of Record, set up your own Indian entity, or engage a contractor. Our comparison of [hiring in India without an entity](https://versatile.club/how-to-hire-in-india-without-an-entity/) sets the routes side by side. If you're unsure, the [hiring option router quiz](https://versatile.club/tools/india-hiring-option-router-quiz/) points to one.
If the person already works for you as a contractor, check the classification first. The [misclassification risk quiz](https://versatile.club/tools/misclassification-quiz/) flags the warning signs.
### Shape the salary {#shape-salary}
Next comes the salary structure. The wage base for PF follows Basic plus DA, so the split of the offer matters from the start. The [CTC offer optimizer](https://versatile.club/tools/india-ctc-offer-optimizer/) helps you shape a structure before Day 2.
### Fix the place and the start date {#place-and-date}
Versatile Club holds registrations across all 28 states, and the [India city picker](https://versatile.club/tools/india-city-picker/) compares hiring cities. The state matters because professional tax follows it. Your candidate may also owe notice to a current employer, and our [India notice period data](https://versatile.club/hiring-in-india/) shows what's typical.
Every field on this form is a decision you make before Day 1: the role, the state, the start date, the monthly salary and probation. The salary figures shown are sample data.
## The five business days {#five-days}
Once you sign, the work moves to us. The service agreement on Day 1 carries the five-day commitment as a contract term, not a target. We send the offer on Day 2, and your hire signs the employment contract with our Indian company on Day 3.
The [employment contract guide](https://versatile.club/docs/contracts/employment-contract/) covers what that contract contains and which clauses Indian law limits. Day 4 starts the [statutory registrations](https://versatile.club/docs/compliance/), and Day 5 puts your hire on payroll.
## What the law says {#the-law}
Four duties under India's labour codes shape the onboarding sequence. Each one falls on the employer, which under an Employer of Record arrangement is the EOR's Indian company, not yours. The Labour Ministry's handbook for employers lists the first of them plainly: ["Issue appointment letter to every new recruit"](https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf).
| Duty | Deadline in the law | Instrument |
|---|---|---|
| Appointment letter | Before the employee is employed | [Central OSH Rules, 2026, rule 6](https://labour.maharashtra.gov.in/sites/default/files/2026-05/occupational-safety-health-and-working-conditions-central-rules-2026.pdf), under [OSH Code, section 6(1)(f)](https://egazette.gov.in/WriteReadData/2020/222112.pdf) |
| ESI registration | Before or on the first day of employment; the declaration follows within thirty days | [Social Security (Central) Rules, 2026, rule 18](https://labour.maharashtra.gov.in/sites/default/files/2026-05/social-security-central-rules-2026.pdf) |
| PF membership | From the date of joining; new members reported within fifteen days of the month's close | [EPF Scheme, 2026, paragraphs 9(2) and 24(2)](https://egazette.gov.in/WriteReadData/2026/273957.pdf) |
| First monthly wages | Before the seventh day of the following month ends | [Code on Wages, section 17(1)(iv)](https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf) |
| Wage slip | On or before the day wages are paid | [Code on Wages (Central) Rules, 2026, rule 52](https://labour.maharashtra.gov.in/sites/default/files/2026-05/code-on-wages-central-rules-2026.pdf) |
### An appointment letter before work starts {#law-appointment-letter}
The OSH Code requires the employer to "issue a letter of appointment to every employee on his appointment in the establishment" ([OSH Code, 2020](https://egazette.gov.in/WriteReadData/2020/222112.pdf)). The [Central OSH Rules](https://labour.maharashtra.gov.in/sites/default/files/2026-05/occupational-safety-health-and-working-conditions-central-rules-2026.pdf) settle the timing: nobody may be employed until the letter is issued. The rules' format covers designation, date of joining, wages and whether PF and ESI apply. As your Employer of Record, Versatile Club issues the letter as the employer, before your hire's first day. What to check: confirm the letter is issued before your hire's first day, because nobody may be employed until it is.
### ESI registration on or before the first day {#law-esi-registration}
For an employee covered by ESI, the employer must register them "before or on the day of taking any person into employment" ([Social Security (Central) Rules, 2026](https://labour.maharashtra.gov.in/sites/default/files/2026-05/social-security-central-rules-2026.pdf)). The portal issues an insurance number straight away, valid for thirty days while the declaration form is completed. ESI covers employees below a wage ceiling, which the [ESIC guide](https://versatile.club/docs/compliance/esic/) explains. What to check: confirm the registration is made on or before your hire's first day of employment.
### PF membership from the date of joining {#law-pf-membership}
Under the EPF Scheme, 2026, a covered employee joins the Fund "from the date of joining the establishment" ([EPF Scheme, 2026](https://egazette.gov.in/WriteReadData/2026/273957.pdf)). The employer uploads the new member's details within fifteen days of the month's close, then files contributions the same way. If your hire can't generate a Universal Account Number (UAN) on the portal, the employer must help them do it. What to do: if your hire is stuck on the UAN, ask the employer to help.
### First wages and the first wage slip {#law-first-wages}
For a monthly wage period, the Code on Wages requires payment "before the expiry of the seventh day of the succeeding month" ([Code on Wages, 2019](https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf)). The wage slip goes out, on paper or electronically, on or before the day wages are paid. The [statutory rates and thresholds reference](https://versatile.club/docs/reference/statutory-rates-and-thresholds/) lists the figures that apply once pay starts. What to check: confirm the first salary and the wage slip are both ready by the day wages are paid.
## Registrations and documents {#registrations-and-documents}
Indian law expects paperwork from the employer. In an establishment covered by the OSH Code, the employer must [issue a letter of appointment to every employee](https://www.labour.gov.in/static/uploads/2025/07/e0971b414d2951d58dd958ecec9c8c09.pdf). The offer and contract both come from Versatile Club as the employer.
The appointment letter and contract sit on the EOR's side of the agreement, so the letter the law requires is never left for your team to draft. This is a sample view of the addendum.
Your hire supplies the details that PF needs. The EPF Scheme asks each new member for their [Aadhaar number, an Aadhaar-seeded bank account, their PAN and their UAN](https://egazette.gov.in/WriteReadData/2026/273957.pdf). A Labour Ministry document also records the direction to [activate the UAN through Aadhaar when it is created](https://www.labour.gov.in/static/uploads/2025/07/a9ea656c0db5a278df53373ee459193d.pdf).
Your hire sees the same order you do: documents first, then PF and UAN, then payroll. The dates in this view are sample data, not a promise for your hire.
We start PF, [ESI](https://versatile.club/docs/compliance/esic/) and professional tax on Day 4, under our own registrations. Our ESIC employer registration is published, along with the company's other numbers, on the [Indian entity and registrations page](https://versatile.club/docs/compliance/entity-and-registrations/). The [Provident Fund page](https://versatile.club/docs/compliance/provident-fund/) covers the PF side in depth.
This clause is why your company needs no Indian registrations of its own to onboard someone. The employer registrations are held in the EOR's name. Sample view of the agreement.
## After payroll goes live {#after-day-five}
Day 5 hands your hire to the monthly cycle. From the first payroll, your hire receives a [wage slip each month](https://labour.maharashtra.gov.in/sites/default/files/2026-05/code-on-wages-central-rules-2026.pdf), as the Code on Wages rules require. Each month we send you:
- **[One USD invoice](https://versatile.club/docs/billing/invoices-and-payment/)** with a cost breakdown for each employee.
- **A payroll summary** with gross pay, deductions and net pay per employee.
- **[A compliance status](https://versatile.club/docs/payroll/monthly-client-pack/)** showing what's filed and what's coming up.
- **PF and ESI challan confirmations** and **[TDS deposit receipts](https://versatile.club/docs/tax/tds-on-salary/)**.
Each month's wage slip appears for the employee once payroll runs, which is the slip the law requires. The rupee figures are sample data.
The [monthly payroll page](https://versatile.club/docs/payroll/monthly-payroll/) shows the full run behind those documents. For the PF deposits in particular, the [employer PF contribution guide](https://versatile.club/docs/compliance/provident-fund/) explains the monthly proof. The [India payroll compliance calendar](https://versatile.club/docs/compliance/compliance-calendar/) lists every recurring deadline after the first month.
## Why onboarding employees in India needs a sequence {#why-it-matters}
Onboarding employees in India mixes legal, tax and payroll steps that depend on each other. The contract has to exist before registrations start, and registrations have to start before the first salary carries PF and ESI. Done out of order, a first payroll can run without statutory cover.
A People Ops lead with a first India hire starting next month needs every step visible before it happens. Seeing the sequence in one place makes it plain what's yours to decide, what the EOR does, and on which day. Our guide for [HR leaders hiring in India](https://versatile.club/for-hr/) explains how that split works day to day.
The nine steps run in a fixed order, so you can see which ones wait on your hire and which wait on the EOR. Sample data.
## Guides in this section {#guides}
- **[Onboard an employee in five business days](https://versatile.club/docs/onboarding/onboard-an-employee-in-five-days/).** What happens on each day, the legal deadlines around it, and how to set a firm start date.
Planned guides on new-joiner documents and registrations, a client onboarding checklist and what can delay onboarding will join this section. Until then, [documents you and your employees receive](https://versatile.club/docs/reference/documents-you-receive/) lists every document from offer to exit. For your hire's first week, our playbook to [equip remote employees in India](https://versatile.club/blogs/equip-remote-employees-in-india/) covers laptops and access.
## How Versatile Club compares for onboarding employees in India {#compare}
Versatile Club's EOR service employs your hire on its own Indian company and starts PF, ESI and professional tax on Day 4. It also commits to five business days from agreement to payroll. Other providers document parts of that sequence. Versatile Club is the only platform in this table that does all three.
Onboarding steps for employees in India, from each platform's public documentation:
| Platform | Hire employed on the provider's own Indian entity | PF and ESI enrollment during onboarding | Fixed business-day count to first payroll |
|---|---|---|---|
| **Versatile Club** | Yes | Yes | Yes |
| **Deel** | Yes ([owns its Indian entity](https://www.deel.com/blog/employer-of-record-india/)) | Yes ([registers and remits PF and ESI](https://www.deel.com/blog/employer-of-record-india/)) | Partly ([SLAs shown in an onboarding tracker](https://help.letsdeel.com/hc/en-gb/articles/51708108302865-About-the-Global-Onboarding-Tracker)) |
| **Remote** | Yes ([contract with Remote's local entity](https://support.remote.com/eor/employee-onboarding/who-will-my-employment-contract-be-with)) | Partly ([EPF passbook reviewed at onboarding](https://support.remote.com/eor/india/employee-payroll/how-to-download-and-share-your-epf-passbook-and-service-history-india)) | Partly ([India average, in working days](https://support.remote.com/eor/employee-onboarding/remote-onboarding-everything-you-need-to-know)) |
| **Oyster** | Partly ([own entity in some countries](https://support.oysterhr.com/hc/en-us/articles/19174905280785-Direct-vs-Indirect-Hiring)) | Yes ([EPF and ESI enrollment is step two](https://www.oysterhr.com/library/employers-of-record-in-india)) | Not in docs |
| **Rippling** | Yes ([hires through Rippling EOR's entities](https://www.rippling.com/blog/employer-of-record-guide-india)) | Yes ([registers hires with EPFO and ESIC](https://www.rippling.com/country-hiring/india-employees)) | Not in docs |
*Yes: documented and built in. Partly: documented with a limit, shown in brackets. Not in docs: not found in the vendor's public documentation.*
### Why Versatile Club is the stronger choice for onboarding employees in India {#compare-stronger}
- **One count from signature to salary.** The onboarding runs five business days, from the Day 1 agreement to Day 5 payroll. Deel's help center shows [onboarding SLAs for each stage in a tracker](https://help.letsdeel.com/hc/en-gb/articles/51708108302865-About-the-Global-Onboarding-Tracker). Compare [Versatile Club vs Deel](https://versatile.club/compare/versatile-vs-deel/).
- **Registrations under the employer's own codes.** We start PF, ESI and professional tax on Day 4, under our own registrations. Rippling's India guide tells employers to [register new hires with EPFO and ESIC](https://www.rippling.com/country-hiring/india-employees). Compare [Versatile Club vs Rippling](https://versatile.club/compare/versatile-vs-rippling/).
- **The employer is known before Day 1.** We name Foo Falcon Technologies Pvt Ltd as the employing company. Oyster's help center says it has [established its own entity in some countries](https://support.oysterhr.com/hc/en-us/articles/19174905280785-Direct-vs-Indirect-Hiring). See [Oyster alternatives in India](https://versatile.club/blogs/oyster-alternatives-india/).
*Competitor details checked against each vendor's public documentation on 23 October 2026. Features and plans change, so confirm with the vendor before you decide.*
## What goes wrong and what to check {#what-goes-wrong}
- **The salary split is settled late.** The wage base for PF follows Basic plus DA, so the split of the offer decides what PF is based on. Shape the structure before Day 2.
- **The notice period is forgotten.** The five business days do not include any notice your candidate owes a current employer, so the start date moves later. Ask about notice before you fix the start date.
- **The steps run out of order.** The contract has to exist before registrations start, and registrations have to start before the first salary carries PF and ESI. Otherwise the first payroll can run without statutory cover. Check that the signed contract is in place before Day 4.
- **The PF details are not ready.** The EPF Scheme asks each new member for an Aadhaar number, an Aadhaar-seeded bank account, a PAN and a UAN. Versatile Club collects documents on Day 3, so ask your hire to have these ready then.
- **The first salary is late.** The Code on Wages requires payment before the seventh day of the next month ends. A hire who joins in January is paid for January by 7 February at the latest. Check your payroll date against that deadline.
## Common questions {#common-questions}
#### How long does it take to onboard an employee in India? {#faq-how-long}
With Versatile Club as your Employer of Record, five business days from the signed service agreement to your hire being active on payroll. The five days are written into the service agreement. Any notice your candidate owes a current employer comes on top.
#### What do I need before onboarding starts? {#faq-before}
A chosen candidate, a salary, the city your hire will work in and a start date that allows for any notice they owe. Someone at your company also needs to sign the service agreement on Day 1.
#### Do I need an Indian entity to onboard an employee? {#faq-entity}
No. Versatile Club's Employer of Record (EOR) service employs your hire on its own Indian company, Foo Falcon Technologies Pvt Ltd. Their filings run under its registrations.
#### Is an appointment letter mandatory in India? {#faq-appointment-letter}
Yes, in an establishment covered by the OSH Code. The [Central OSH Rules](https://labour.maharashtra.gov.in/sites/default/files/2026-05/occupational-safety-health-and-working-conditions-central-rules-2026.pdf) say no employee may be employed until the letter is issued. Under an EOR, the offer and contract come from the EOR as the employer.
#### What documents does a new employee need to provide? {#faq-documents}
Their PAN, their Aadhaar number, a bank account for salary and their UAN if they already have one from an earlier job. We collect the documents on Day 3, after the contract is signed.
#### When are PF and ESI set up? {#faq-pf-esi}
On Day 4. We initiate PF, ESI and professional tax for the employee, so the first payroll on Day 5 already carries them.
#### When must the first salary be paid? {#faq-first-salary}
For a monthly wage period, the [Code on Wages](https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf) requires payment before the seventh day of the next month ends. A hire who joins in January is paid for January by 7 February at the latest.
#### Can I onboard someone who already works for me as a contractor? {#faq-contractor}
Yes. Contract-to-Hire is one of our established services: a person starts as a contractor and converts to a full-time employee when you're ready. The conversion runs through the same five days.
#### What do I receive once payroll starts? {#faq-monthly}
One USD invoice with a line per employee, a payroll summary, a compliance status, PF and ESI challan confirmations and TDS deposit receipts, every month.
#### Who do I contact while onboarding runs? {#faq-contact}
Reach the team through the [Versatile Club contact page](https://versatile.club/contact-us/). We handle client communication directly.
## Related {#related}
- [Versatile Club service documentation](https://versatile.club/docs/): every service component, page by page.
- [Employment contracts in India](https://versatile.club/docs/contracts/employment-contract/): the Day 3 contract, clause by clause.
- [Test India before committing to a GCC](https://versatile.club/docs/use-cases/test-india-before-a-gcc/): onboarding a team you may later move to your own entity.
- [Versatile Club's EOR pricing](https://versatile.club/pricing/): how the monthly plan for each employee works.