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.
On top of salary, the employer pays
- 12% Provident fund (EPF), employer share
- 3.25% State health insurance (ESI), employer share
What the employer pays on top of salary in India
- 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.
Yearly cost of one employee in India, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, RemoFirst $199, Remote $699, Skuad $199, Velocity Global (Pebl) $399. 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.