India

CurrencyIndian Rupee
Payroll FrequencyMonthly
CapitalNew Delhi
Date Formatdd/mm/yyyy
VAT5% standard rate.

PEO / Employer on record Services
TopSource offers complete Payroll, PEO and contractor management services for India.
TopSource provides PEO (Professional Employer Organization) services to multi-national companies establishing a presence in India or to start-up companies that do not wish to be burdened with the complications of Indian employment regulations.

As a Professional Employer Organization (PEO), TopSource serves as an outsourced Global employment Solutions provider, providing comprehensive employment services such as payroll, payroll related compliances (Provident Fund, Income tax, ESIC, Professional tax, etc.), leave and attendance administration, HR management, and assistance with employer compliances.

Services we offer

Payroll Processing
• Employment solutions/leasing • Establishing tax efficient salary structure
• Providing documents associated with employment • Employee on-boarding process and documentation
• Payroll system access • Monthly salary calculation
• Employee expense reimbursement (If applicable) • Salary disbursement to employee’s account
• Monthly pay slip generation (If applicable) • Employee statutory benefits administration and deduction
• Tax Filing (e-TDS) • Income tax declaration administration
Supplementary services
• Insurance administration • Workplace infrastructure administration
• Bank account opening (Add-on service) • Foreigner VISA application (Add-on service)

Company formation in India
We offers company formation services in India and can help company registration in India, company incorporation, and with all the necessary documentation. To register a company is a popular option to start a business in India by startups and businesses with higher growth aspirations. We also allows foreign companies to smoothly setup a company anywhere in India.

We can assist in company formation with the following procedures

  • Application for Director Identification Number (DIN)
  • Application for digital signature
  • Application for company name
  • Documentation related to incorporation certificates/forms
  • Application for the company PAN Card
  • Documentation related to Memorandum of Understanding (MOU and Articles of Association (AOA)
  • Application for company tax deduction and Collection Account Number (TAN)/Tax Deducted at Source (TDS) Number

Statutory Compliances
We offer high-quality corporate statutory compliance services in India. Our services meet highest standards and meet all your compliance requirements. By placing your employees on our payroll, we take care of all statutory compliances such as PF, PT, ESIC, LWF registrations and filing along with ETDS filing. Will deal with statutory compliances like:

  • Withholding tax or Tax Deducted at Source (TDS)
    According to the Income Tax Act, 1961, employers are required to deduct TDS (Tax Deducted at Source) before full payment to the employee. TDS is applicable to all the employees falling under the Income Tax Slab. Details of the current tax slabs are given below: Income Tax – Slabs – FY 2019-20
    Annual Salary Percentage
    Income up to INR 2,50,000 No Tax
    Income between INR 2,50,000 to INR 5,00,000 5%
    Income between INR 5,00,000 to INR 10,00,000 20%
    Income over INR 10,00,000 30%
  • Employees Provident Fund (PF) and Miscellaneous Provisions Act, 1952
    The Employee Provident Fund (PF) and Miscellaneous Provisions Act, 1952 is a social security act for the benefit of an employee. It provides for compulsory contributory fund for the future of the employee after his retirement or for his dependents after his death. Employees and employers contribute equally a certain percentage of the monthly wages to PF. Currently the percentage is 12% of monthly wages. The contributions are made on a monthly basis.
  • The Employees’ State Insurance Act, 1948
    The ESI Act is a social security act under which medical benefits are provided to employees through state run hospitals and clinics. ESI benefits accrue to employees earning less than INR 21,000 per month in gross wages. Employee’s contribute 0.75% and employers contribute 3.25% per month.
  • Professional Tax
    Professional Tax (PT) is a tax levied by a state government on every individual that is employed in that state. It differs from state to state. For Maharashtra, the total PT payable by an employee is Rs 2,500 per year, based on the highest slab.
  • Labour Welfare Fund Act, 1965
    Labour Welfare Fund is another form of social security benefit and it focuses on the welfare of the workers to improve their standard of living, working conditions and gives social security. It is a state law and the contributions differ from state to state. For Maharashtra, the contributions are collected semi-annually in June and December and the rates of contribution depend on the type of employee.

About Employment in India

Working Hours

The India work week is 40 hours, with a standard work day of 8 hours. Workers are entitled to 10.5 hours between work days. Work hours should not exceed more than 50 hours per week, or 9 hours per day.

Vacation Leave

Statutory minimum of paid vacation leave in India is 21 mandatory vacation days. We commonly see companies offering the 21 days, but occasionally senior professionals may request more.

Sick Leave

In India employers must provide 6 days of sick leave a year. Some employers provide an unpaid leave for long term medical issues, but this is not mandatory.

Maternity Leave

Female employees are entitled to 26 weeks of maternity leave, the benefit can be availed by women for a period extending up to a maximum eight weeks before the expected delivery date and remaining can be availed childbirth.

Termination/Severance

Probationary periods are commonly used in India with 1 months being a typical probation timeframe. The maximum initial probation is 1 months, and then the employer can extend the probation for up to an additional 3 months.

Health Insurance Benefits

Health Insurance in India is a mixture of public and private insurance. Some candidates may request an allowance for coverage. We recommend paying a taxable allowance in the amount of US$200 to US$400 a year to cover the cost of a private medical plan if you would like to offer supplementary benefits.

Holidays

Employees receive 10 paid public holidays. In India, the holidays vary by state (there are 30 different states), religion, and local custom. Therefore, the government does not stipulate what days the employee have to use as a holiday, but rather allows them to allocate the 10 public holidays as they see fit. have different holidays. does not need to be negotiated.

Indian Taxes

By statute, employers in India contribute the following: • EPF- Employee Provident Fund • EPS – Employee Pension Scheme (only for government employees). • EDL- Employees’ Deposit Linked Insurance Scheme • Income tax for 2019-2010 ranges based on the employee’s salary.
To learn more, contact us now.

Get in touch

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0203 6915303
contactus@topsource.co.uk

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