Employing in India
Central law, state rules,
one employer of record.
The hire is easy. The compliance is layered.
Employment in India is not a single system. A central framework governs provident fund, insurance, gratuity and income tax withholding, while each state sets its own Shops & Establishments rules on hours, holidays, leave and registers — and some states levy professional tax on top.
None of this is a barrier once someone is accountable for it. Grow EOR is the legal employer, so the registrations, filings and deadlines are our obligation rather than a project your team has to absorb.
One country, many jurisdictions
Central Acts such as the EPF & MP Act, 1952 and the ESI Act, 1948 apply nationally, but working hours, leave, registers and professional tax are set state by state. The employee's work location, not your headquarters, decides which rules apply.
Thresholds decide obligations
EPF is mandatory for establishments with 20 or more employees, and contributions are calculated at 12% of basic wages with a statutory wage ceiling of ₹15,000 that can be exceeded voluntarily. ESIC applies to employees earning up to ₹21,000 a month.
The Labour Codes are enacted, not fully in force
The Code on Wages, 2019 and the three codes of 2020 consolidate 29 earlier laws, but implementation depends on central and state rules being notified. Until then, employers comply with the existing Acts and track notifications state by state.
Misclassification is the common failure
Engaging someone as a contractor while directing their hours, tools and reporting line invites reclassification, with retrospective EPF, ESIC and gratuity exposure. The engagement model has to match the working reality from the start.
State by state
The rules change with the work location.
Karnataka
Shops & Establishments Act, 1961 · professional tax payable monthly
Maharashtra
Shops & Establishments Act, 2017 · PT plus labour welfare fund
Telangana
Shops & Establishments Act, 1988 · PT slabs by monthly wage
Tamil Nadu
Shops & Establishments Act, 1947 · PT levied half-yearly
Haryana
Shops & Commercial Establishments Act, 1958 · no professional tax
Delhi
Shops & Establishments Act, 1954 · no professional tax
0
States, plus 8 union territories
₹15,000
EPF statutory wage ceiling per month
0
Employees at which EPF becomes mandatory
0
Labour Codes consolidating 29 earlier Acts
Figures reflect the position under the Acts referenced above. Rates, ceilings and state notifications change; we confirm the applicable numbers for your specific hire before you commit to a salary.