India-native Employer of Record.

An Employer of Record in India is a company that already holds an Indian entity and becomes the legal employer of the people who work for you: their contract, payroll and statutory registrations sit on that entity, and you direct the work, set the pay and decide who stays. There is no separate EOR statute; it is ordinary Indian employment on our entity plus a services agreement with you. Ours is Foo Falcon Technologies Pvt Ltd, Bengaluru, incorporated 2022, and the certificates reach you before anything is signed.

1. You pick the personYour own candidate, a team you already run, or a shortlist we build in nine days.
2. We issue the contractIndian-law employment agreement on our entity with IP assigned to your company, countersigned inside 48 hours.
3. Registrations on day twoPF UAN, ESIC where it applies, bank and PAN verification, education, employment and criminal checks, insurance enrolment.
4. Payroll on day fiveSalary in INR to the employee's own Indian bank account on the 30th, PF and ESI deposited by the 15th, TDS by the 7th, payslips and proof of every filing to you.
5. You run the teamReviews, targets, raises and exits are your calls. The paperwork behind each one is ours.

The employee receives: an offer letter and employment agreement, a payslip every month, a PF passbook through their own UAN, Form 16 every year and a relieving letter at exit.

Two numbers make up the cost: the EOR fee, and the statutory load that sits on top of gross salary whichever route you take. No minimum seat count, no setup or exit fee; the first employee costs the same as the tenth.

The statutory load is arithmetic, not a quote. At Basic of 50% of gross the employer side is 13% of Basic to EPF plus a 4.81% gratuity accrual, which is 8.9% of gross. ESIC adds 3.25% only while monthly gross is at or below Rs 21,000. Market quotes of 15 to 22% bundle insurance and administration into the same line (an India-native EOR's pricing page, read 3 Sep 2026).

Filed under our registrations, proof sent to you monthly. Employees can sit in any state: professional tax and holidays follow the state, PF, ESIC and TDS do not. Rates are FY 2025-26.

Set mostly by the state the employee sits in. Karnataka is the worked example because our entity is registered there; the statute sits under each line.

Public holidays

At least 10 paid holidays a year in Karnataka: 26 January, 15 August and 2 October, plus the rest from the list the state publishes each year.Karnataka Industrial Establishments (National and Festival Holidays) Act 1963

Earned leave

One day for every twenty days worked, accrued through the year, encashable at exit, and up to 45 days carried forward.Karnataka Shops and Commercial Establishments Act 1961, section 15

Sick and casual leave

Twelve days a year with wages for sickness, accident or any other reasonable cause. The Act no longer carries a separate casual-leave entitlement; anything above twelve is contractual.Karnataka Shops and Commercial Establishments Act 1961, section 15

Maternity

26 weeks paid for the first two children, funded by the employer.Maternity Benefit Act 1961, as amended 2017

Working hours

48 hours a week and 9 a day under the Karnataka Act, with overtime at twice the ordinary rate.Karnataka Shops and Commercial Establishments Act 1961

Probation

Not set by statute. It is a contract term; three to six months is the convention and it is written into the employment agreement we issue.Contract term

Notice

A 30-day floor for employer-initiated termination. Resignation runs on the contract's notice, most often 30 to 90 days.Contract term

Retrenchment pay

15 days of average pay for every completed year of service, plus one month's notice or pay in lieu.Industrial Disputes Act 1947, section 25F, carried into the Industrial Relations Code

Final settlement

Wages due are paid within two working days of the last day under the Code on Wages; gratuity and leave encashment settle with it.Code on Wages 2019, section 17

Related tools: Holiday and leave policy tool · Severance pay calculator · Gratuity calculator

What the 2025-26 Labour Codes change for an EOR hire

Four Codes replace 29 central Acts, in force from 21 November 2025 with central rules from 8 and 9 May 2026; states are still notifying their own rules, so the older Act applies where a state rule is not yet in force.

For a hire on our entity three things move: Basic sits at 50% or more of pay (the convention every figure here uses), final wages are due within two working days of the last day, and a fixed-term employee earns gratuity pro rata after one year.

Source: Ministry of Labour and Employment, Labour Codes

Permanent establishment risk with an Employer of Record in India

A tax question about your company, not the hire. It turns on a fixed place of business in India or a person here who habitually concludes contracts in your name; an employee working for you under our employment gives you neither by itself.

The structure keeps it that way: employment on our entity, signing authority with your home company, a services agreement in India. Not tax advice; where an employee will negotiate or sign for you the position changes, and we say so before the hire.

Walk the tests in the Permanent establishment risk quiz.

Intellectual property and employee data

Work product is assigned to your company twice: in the present tense in the employment agreement with our entity, and again in the services agreement between us.

Employee data is processed under the Digital Personal Data Protection Act 2023; our data processing terms set out who is fiduciary for what. Employment records sit under our obligations, what you collect for your own purposes under yours.

Written for counsel: the full PE, IP and DPDP position.

Three structures sold under overlapping names. The wrong one is how misclassification cases start.

PEO in India · Contractor of Record · Misclassification quiz · Managed payroll on your own entity

Part of employment on our entity, underwritten by one of India's largest general insurers, live from day one with pre-existing conditions covered. A company picks one tier for its whole India team for the policy year; premiums are billed at actuals alongside salary.

On every tier: pre-existing conditions from day one, a single private AC room with ICU uncapped, no deductible, no disease-wise capping, day-care, domiciliary and AYUSH treatment, 60 days pre and 90 days post hospitalisation, modern treatments to the sum insured, 50% co-pay, organ donor expenses, LASIK at 6.5 dioptres and above, accident-related dental treatment, unlimited online doctor consultations, 20 or more specialities, family included, annual health check, 85 to 100 or more markers by tier, and mental health counselling and a 24 by 7 helpline on the two upper tiers.

Accident and disability, every employee: Rs 50L sum insured, capped at 5x CTC; accidental death 100% of sum insured, permanent total disability 100%, permanent partial disability up to 75%, temporary total disability weekly benefit, two years, accidental hospitalisation to 50% or Rs 2,00,000, education, per child 10%, up to two children.

Cover levels are those of the policy year beginning 2026. A few occupations the insurer classes as higher risk, such as delivery drivers and hazardous-materials roles, need prior approval; office-based roles do not.

No ranking means anything. Seven things you can verify before you sign do; the first two take ten minutes.

1. Whose company name is on the PF and ESIC registrations. If it is a partner's, you are buying a reseller.Foo Falcon Technologies Pvt Ltd, Bengaluru, incorporated 2022. The certificates go to you as PDFs before anything is signed.
2. Whether last month's statutory filings come with proof, or with a promise.Every PF, ESIC, professional tax and TDS filing is sent to you with the challan, monthly.
3. The names of your compliance manager and your employee's HR contact, before signature.A named compliance manager and a dedicated payroll lead for you; a separate contact for the employee, so you never play middleman.
4. The insurance policy wording, not the word "comprehensive".The cover is on this page, line by line, tier by tier.
5. What is billed at actuals and what is a percentage of salary.A flat $149 per employee, $129 from the twenty-first; salaries and statutory costs at actuals; no setup fee, no exit fee.
6. What happens to tenure, gratuity and PF when you leave, or move onto your own entity.UAN, gratuity clock and tenure carry over intact. One client moved 200 people across in a single payroll cycle.
7. Whether India is the product or one country of 150 routed through a partner.India is the only country we employ in.

For a side-by-side of the vendors, the write-up of the best EOR providers in India for 2026 and the compare pages carry the same seven questions. Versatile against each global platform.

Same employment whichever country invoices; what changes is time-zone overlap, the payment rail and the double-taxation position, each on its own page. Employees work from home or a partner-sourced desk. A foreign national working from India needs an Employment visa held against the employer, which takes weeks, so raise it before the offer.

United States · United Kingdom · Australia · Canada · Germany · France · Ireland · Netherlands · New Zealand · Singapore

Where your team sits changes the professional tax and the holiday list, nothing else: Bengaluru · Hyderabad · Pune · Delhi · Mumbai · Chennai.