Hiring in India through an Employer of Record
An Indian employer pays into the provident fund and, for lower paid staff, the state health insurance scheme.
Employing someone in India through an Employer of Record costs their salary, plus 12 percent provident fund (epf), employer share, 3.25 percent state health insurance (esi), employer share, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. The charges were read from labour.gov.in and the other government pages listed below, last on .
What does an employer pay on top of salary in India?
- 12% Provident fund (EPF), employer share
- 3.25% State health insurance (ESI), employer share
Each charge, and what it is for
- Provident fund (EPF), employer share: 12 percent of wages, part of it diverted to the pension scheme.
- State health insurance (ESI), employer share: 3.25 percent of wages, for staff earning under the ESI wage limit.
The provident fund rate comes from a government statement to parliament, and the ESI rate from an older government press release, the only official page we could read that states it; the ESI site refuses automated readers. The provident fund charge is compulsory only up to a wage ceiling, and ESI covers only lower paid staff, so for a well paid hire the real charge is lower than this total. Check both with the vendor.
What does one employee in India cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Provident fund (EPF), employer share on labour.gov.in read
- State health insurance (ESI), employer share on pib.gov.in read
- Each vendor's own pricing page, linked from its name above.