How to hire remote employees in


India is one of the best places in the world to hire remote talent. But if you don’t already have a physical presence there, hiring and paying your talent in India can get complicated. In the next five minutes, we’ll teach you how you can hire remotely in India—without paying thousands in legal fees and getting caught up in legal red tape:

Country snapshot

Indian Rupee (INR)
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What to know before you hire in 


Laws about hiring are complicated, and the same is true in India. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in India, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in India than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in India.

Taxes in 


Employer tax

Employer Contributions

  • 13.08%

Individual tax


Paid Time Off (PTO)

  • Employees are entitled to 15 paid annual vacation days. A maximum of 30 vacation days can be carried over to the next year.

Public Holidays

There are 3 national holidays where businesses must be closed; Republic Day, Independence Day, and Ghandi Jayanti. In addition to this, each region has their own public holidays that are observed

Sick Days

Employees are allowed a maximum of 15 paid sick leave days a year and receive 70% of their average daily wage.

Maternity Leave

Employees receive 100% of their average wage in the six months prior to childbirth. The amount of fully paid time leave depends on the number of children an employee has.

First 2 children – 26 weeks paid
3 or more children – 12 weeks paid

Paternity Leave

New fathers are entitled to 2 days’ leave for the birth of their child or a miscarriage.

Parental Leave

There are no statutory laws for parental leave.

Other Leave

Casual leave: provided for urgent and unexpected matters. Typically companies have a strict maximum of three days a month, and 6 yearly. Casual leave is not encashable. At the end of the year, unused leave lapse automatically.

Work-related injury leaves: Work injury benefits come from the contributions made towards the employees’ compensation and employees’ state insurance. Temporally disabled workers receive 50% compensation monthly.

Marriage Leave


Bereavement Leave



Termination Process

If termination isn’t specified in a contract, an employer must give 30 days’ notice or payment in lieu to an employee who has worked for at least 3 months. No notice is required for termination due to misconduct.

Notice Period

A 30 days’ notice period should be given.

Severance Pay

Severance payment is given to workers who have been continuously employed for 2 years and are terminated for redundancy. Severance payment reflects the duration of employment, performance, and salary.

Probation Period


Employee requirements in 


Working Hours

A full-time workweek is 48 hours.


Overtime is paid double the rate of the normal pay.

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