India

Last Update by Julie, 21 Nov 2024

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Exchange Rate

01 Dec 2024

 

Cost of Living

Indicative value for a working adult in a city: New Dehli

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (INR)
McDonalds Set Meal 350
Monthly Train and Bus Tickets 1,120
3 Bedrooms Rental (City Center) 58,000
3 Bedrooms Rental (Outskirt) 28,000

Current Inflation Rate

5.09%

Wage

Minimum Wages

  • Only regulated in agriculture, mines, logistics, cleaning, and watch and ward
    - The national-level minimum wage is approximately INR 178 per day, translating to around INR 5,340 per month.

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (INR)
Entry-Level
Fresh Graduate
 25,000
Mid-Level
5 Years
 37,500
Experienced & Managerial Level
10 Years
 125,000
Specialized & Senior-Level
15 Years
 160,000

Annual Salary Growth

3.6%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Provident Fund (EPF) 4.67% 12% All staff,
capped at monthly wages of INR15,000
Deposit Linked Insurance Scheme (EDIL) 0.5% - All staff,
capped at monthly wages of INR15,000
Pension Scheme 8.33% - All staff
State Insurance (ESI) 3.25% 0.75% All staff, applies to companies with at least 10 staff
Salary is below INR21,000 per month
Statutory Bonus 8.33% or 100 INR, whichever is higher - All staff
Gratuity 60% of monthly salary
mandatory for companies with at least 10+ staff 		- Mandatory for companies with at least 10 staff; requires a minimum of 5 years of continuous service.
Gratuity formula: (15×Last Drawn Salary × Number of Completed Years of Service)/26

Income Tax

Residents

  • Tax Period: 1 Apr - 31 Mar of the following year.
    Tax filing start date: Apr of the following year.
    Tax filing due date: 31 Jul of the following year.
  • Surcharge:
    In addition to income tax, a surcharge is levied where the total income of individuals exceeds INR5 million.

Country Level

Taxable Income Rate
0 - 300,000 0%
300,000 – 600,000 5%
600,000 – 900,000 10%
900,000 – 1,200,000 15%
1,200,000 – 1,500,000 20%
> 1,500,000 30%
Taxable Income Rate
Up to 5 million 0%
Above 5 million but up to 10 million 10%
Above 10 million but up to 20 million 15%
Above 20 million but up to 50 million 25%
above 50 million 25%

Non-residents

  • Same as tax resident

Working Hours

Statutory

48 Hours
8 hours a day, 6 days a week

Overtime

Vary across different labor law and industries, any work beyond the regular hours is considered overtime.

  • Workdays: 150% of regular hourly wage
  • Rest Days or Public Holidays: 200% of regular hourly wage

Employment Contract

Permanent

Contract Format

Written in Hindi or English, and bilingual contracts are accepted.
- In Karnataka, Kerala, Telangana, and Delhi: Contracts must be written.
- In all other states: Contracts can be verbal or written.

Payroll Currency

INR

Probation

General roles: up to 3 months
Industrial Employment Act: up to 3 months
Senior roles: Up to 6 months

Contract Period

No minimum duration

Termination

Refer to the employment contract signed

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation 15 days to 1 month, or as per employment contract signed 15 days to 1 month, or as per employment contract signed 15 days to 1 month, or as per employment contract signed
Notice Period - Regular Non-managerial: 1 month Managerial: 1 month to 3 months, or as per employment contract signed Non-managerial: 1 month Managerial: 1 month to 3 months, or as per employment contract signed Non-managerial: 1 month Managerial: 1 month to 3 months, or as per employment contract signed
Severance Pay Not Applicable Must at least 1 year (240 days) of service are eligible or more than 6 months but less than 1 year of service will be treated as 1 year Calculation: 15 days’ average pay for each completed year of continuous service Must at least 1 year (240 days) of service are eligible or more than 6 months but less than 1 year of service will be treated as 1 year Calculation: 15 days’ average pay for each completed year of continuous service

Public Holiday

17 days

Country Level

Date Name
26 Jan Republic Day
08 Mar Maha Shivaratri
25 Mar Holi
29 Mar Good Friday
09 Apr Ugadi
10 Apr Idul Fitr
17 Apr Ram Navami
17 Jun Eid al Adha
17 Jul Muharram
15 Aug Independence Day
26 Aug Janmashtami
16 Sep Eid e Milad
02 Oct Gandhi Jayanti (Father of the Nation)
13 Oct Vijaya Dashami
01 Nov Diwali
15 Nov Guru Nanak Jayanti
25 Dec Christmas Day

State/Province Level

Uttar Pradesh

Date Name
25 Jan Hazrat Ali Jayanti

Leave

The number of leave and leave types depends on state-specific laws.

Leave Type Entitlement Notes
Annual Leave/Earned Leave 15 working days, varies among states and industries All staff; accrual of 1 day of leave for each completed month of service
Casual Leave (unplanned) 10 working days All staff
Sick Leave (Health Related) - 7 working days per calendar year (State of Punjab)
- 12 working days per calendar year (State of Karnataka) 		All staff; accrual of 1 day of leave for each completed month of service
Maternity Leave 26 weeks Available to all expectant mothers with at least 80 days' service in the past 12 months

Reference

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