Employer of Record (EOR) services in India

An EOR is the legal employer on paper. Your people work for you day to day, but the EOR handles contracts, payroll, compliance, and benefits under its Indian entity. You get the team, they carry the legal and administrative load.

The EOR ensures every hire is compliant with Indian labor laws. That means filing PF, ESI, gratuity, and professional tax, managing TDS (income tax withholding), and issuing payslips in INR—on time, every month.

Employers must cover:
- Provident Fund: 12% of basic salary
- ESI: 3.25–4.75% (for salaries under ₹21,000)
- Gratuity: ~4.81% of basic salary (after 5 years)
- Professional Tax: up to ₹2,000/year (state-based)
An EOR manages all these contributions.

Entity setup takes 3–6 months. With an EOR, employees can start in 2–3 weeks. The EOR already has the entity, registrations, and payroll systems in place.

Yes. That’s the main reason companies use EOR services. The EOR employs staff under its registered entity in India, so you don’t have to incorporate or manage local compliance yourself.

EORs issue bilingual contracts (English + local language) that comply with state Shops and Establishments Acts. Most employees start with a 3–6 month probation period, after which notice periods and benefits entitlements expand.

The EOR calculates gross-to-net pay, deducts Tax Deducted at Source (TDS), and files with the Income Tax Department monthly. Employees receive payslips showing deductions and an annual Form 16 for tax filing.

Mandatory benefits include PF, ESI, gratuity, maternity leave, and paid annual/sick leave. Many employers also add health insurance and wellness perks to stay competitive.

Most global providers charge 10–15% of salary. TeamUp charges a flat €299 per employee/month, no sliding scale, no hidden markups.

Every month, the EOR runs payroll in INR, deducts TDS at the correct slab, files with authorities, and deposits contributions (PF, ESI, gratuity). Employees get clean payslips; companies get compliance peace of mind.