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PEO Services India – Simplify HR, Payroll & Compliance
PEO Services India – Simplify HR, Payroll & Compliance


  • Employee onboarding and documentation
  • Payroll processing and tax compliance (PF, ESI, TDS, etc.)
  • Statutory benefits management
  • Labor law and regulatory compliance across all Indian states
  • HR administration and employee support

With our deep local expertise and national presence, we act as your co-employer in India, enabling you to retain control over daily operations while we manage the HR and compliance responsibilities.

This page explains how PEO and Employer of Record services work in India, including employment laws, compliance requirements, payroll, and hiring models for foreign companies.
About Us

PEO & EOR Services India: Your Expert Bridge to India's Top Talent

Unlock India's vast, highly-skilled talent pool without the cost and complexity of setting up a local entity. For US companies looking to scale, innovate, and build a global team, India presents an unparalleled opportunity. PEO Services India is your strategic partner on the ground, making it simple, compliant, and fast to hire the best professionals India has to offer. With our expert Employer of Record (EOR) services in India, we handle all the HR complexities so you can focus on what you do best: growing your business.

Jai Kumar Shah

Jai Kumar Shah: PEO and EOR Services Expert

The Challenge: Hiring in India from the US

Expanding your workforce into India can seem daunting. You face a different set of regulations, complex labor laws, payroll requirements, and the significant hurdle of establishing a legal entity. These challenges can delay your market entry, drain resources, and distract from your core business objectives.

Our Solution: Seamless India Employment Solutions

We eliminate these barriers. As a leading Professional Employer Organization in India, we provide a streamlined, all-in-one platform for your Indian workforce needs. Whether you need comprehensive PEO services or a dedicated Employer of Record (EOR) in India, we have you covered.
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Speed to Market

Onboard new employees in days, not months.

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Cost-Effective

Avoid the immense costs of legal entity setup and maintenance.

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100% Compliant

Navigate India's labor laws, taxes, and social security with confidence.

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Total Focus

We manage the HR administration while you manage your team's success.

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How We Empower Your US Business in India

We offer a full suite of services designed to make your expansion a seamless success.

Business Analysis
Business Hiring
Business Planning
Business Marketing
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WORLD WIDE BUSINESS
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Services

Hire in India Without an Entity

Our core offering is the ability to hire in India without establishing a subsidiary. We act as the legal Employer of Record for your Indian talent, placing them on our compliant, local payroll. You retain full day-to-day management of your employees, while we handle the legal and administrative responsibilities.

Expert Payroll and Compliance Services in India

Say goodbye to navigating complex tax codes and mandatory contributions. We manage everything:

  • Monthly payroll processing in Indian Rupees (INR)

  • Income tax withholding (TDS)

  • Provident Fund (PF), ESI, and other social security contributions

  • Issuing payslips and year-end forms

  • Ensuring full compliance with all Indian labor regulations

Comprehensive India HR Outsourcing & Management

From onboarding to offboarding, we are your local HR department. Our services include drafting locally compliant employment contracts, managing benefits administration (like health insurance and leave policies), and providing expert guidance on all HR-related matters. This is the ultimate India HR outsourcing solution for global teams.

Streamlined Remote Employee Hiring in India

In today's global economy, finding the right remote talent is key. We specialize in remote employee hiring in India, ensuring your distributed team members are onboarded smoothly and supported by a professional local infrastructure. We provide the compliant framework for you to tap into India's best tech, sales, and support talent, no matter where your headquarters is located.

Our Simple 4-Step Process to Hire in India

We've refined our process to be as efficient as possible, getting your new team member productive in record time.

Consult & Strategize

We connect with you to understand your hiring needs, budget, and business objectives.

Identify & Onboard

You find your ideal candidate, and we handle the rest—from drafting a compliant employment offer to managing all onboarding paperwork.

Manage & Pay

We add your employee to our payroll, manage all taxes, benefits, and HR compliance, ensuring they are paid accurately and on time.

Support & Scale

We provide ongoing HR support for you and your employees, allowing you to scale your Indian team with ease.

India PEO & EOR Services – Detailed Overview

India PEO & Employer of Record (EOR) Services

Professional Employer Organization (PEO) and Employer of Record (EOR) services in India enable foreign companies to hire, manage, and pay employees legally without setting up a local entity. Through a compliant employment structure, businesses can access India’s talent market while ensuring full adherence to Indian labour laws, payroll regulations, and statutory benefits.With our India PEO services, we act as your trusted local partner, managing employment compliance while you retain operational control over your workforce.

Employment Contracts in India 

Key elements typically included in Indian employment contracts:

Indian labour law does not mandate written employment contracts for all roles; however, professionally drafted written contracts are strongly recommended and widely followed to protect both employers and employees.

  • Job title, role, and responsibilities
  • Employment type (permanent, fixed-term, contractual)
  • Compensation structure and payroll frequency
  • Confidentiality and intellectual property clauses
  • Termination conditions and notice periods
  • Non-compete and non-solicitation clauses (where applicable)

Types of employment in India:

  • Permanent employment – Ongoing roles with statutory benefits
  • Fixed-term contracts – Time-bound contracts with defined end dates
  • Probationary employment – Usually 3–6 months
  • Temporary employment – Governed by contract labour regulations
  • Termination conditions and notice periods

Our PEO ensures all employment contracts are compliant with Indian labour laws and industry best practices.

Working Hours in India

Working hours in India are governed by the Occupational Safety, Health and Working Conditions Code.

Standard working hour rules:

  • Maximum 8 hours per day
  • Maximum 48 hours per week
  • One mandatory weekly rest day

Overtime:

  • Overtime wages are typically paid at twice the regular rate
  • Applicable mainly to non-managerial employees
  • State-specific rules may apply

Our PEO services ensure accurate time tracking, overtime calculations, and payroll compliance across Indian states.

Employee Leave & Holidays in India

Indian employees are entitled to various statutory leaves depending on tenure, state laws, and company policies.

Common statutory leaves include:

  • Annual / Earned Leave – Typically 15–20 days per year
  • Sick Leave – Varies by state and company policy
  • Maternity Leave – 26 weeks for eligible employees
  • Paternity Leave – As per employer policy
  • Public Holidays – National + state-specific holidays

India observes three national holidays:

  • Republic Day (26 January),
  • Independence Day (15 August)
  • Gandhi Jayanti (2 October)

Employers must also provide additional regional and festival holidays based on location.

Employee Termination in India

Employee termination in India must comply with labour laws and contractual obligations.

Key termination considerations:

  • Written notice is mandatory
  • Notice period ranges from 30 to 90 days, depending on role and tenure
  • Severance and gratuity may apply for long-term employees
  • Mass layoffs and closures require government approval

Improper termination can result in legal disputes. Our PEO ensures lawful exits, documentation, and risk mitigation.

Employee Benefits in India

Employers in India must provide statutory benefits as per law.

Mandatory statutory benefits include:

  • Provident Fund (PF)
  • Employee State Insurance (ESI)
  • Professional Tax
  • Gratuity
  • Bonus (where applicable)

Optional benefits often include:

  • Health insurance
  • Accident insurance
  • Flexible benefit plans

Our India PEO services manage benefit enrolment, deductions, and compliance seamlessly.

PEO vs Employer of Record (EOR) in India

We offer both PEO and EOR solutions depending on your business stage and expansion strategy.

Compliance Disclaimer

Labour laws in India are subject to change at both central and state levels. Our PEO services continuously monitor regulatory updates to ensure your workforce remains compliant at all times.

Last updated: January 2026 Refer goverment website: New Labous Laws of India

FAQ

What is a Professional Employer Organization (PEO) in India?

A Professional Employer Organization (PEO) in India helps companies manage payroll, HR administration, statutory compliance, and employee benefits while the client retains control over daily work and employee performance.

What is the difference between PEO and Employer of Record (EOR) services in India?

In an Employer of Record (EOR) model, the provider becomes the legal employer and allows companies to hire in India without a local entity. In a PEO model, the client usually has an Indian entity and shares employment responsibilities with the PEO.

Is it legal to use PEO services in India?

Yes, PEO services are legal in India when structured in compliance with applicable labour laws, payroll regulations, and statutory benefit requirements at both central and state levels.

Can foreign companies hire employees in India without a legal entity?

Yes, foreign companies can hire employees in India without establishing a local entity by using Employer of Record (EOR) services, where the EOR manages employment, payroll, and compliance on the company’s behalf.

How long does it take to hire employees in India using a PEO or EOR?

Hiring through a PEO or EOR in India typically takes between one to two weeks, depending on documentation, background verification, and role-specific requirements.

Who manages payroll and statutory compliance under a PEO model?

Under a PEO model, payroll processing, tax deductions, statutory filings, and compliance reporting are managed by the PEO to ensure accurate and timely adherence to Indian regulations.

What compliance risks are reduced by using a PEO or EOR in India?

PEO and EOR services reduce risks related to labour law non-compliance, payroll errors, employee misclassification, incorrect statutory filings, and improper termination procedures.

What should companies consider when choosing a PEO or EOR provider in India?

Companies should evaluate compliance expertise, local regulatory knowledge, service transparency, data security standards, scalability, and experience working with international clients.

Ready to Build Your Dream Team in India?
Stop letting borders limit your growth. Leverage our expertise to tap into one of the world's most dynamic talent markets. Let's discuss how our PEO and EOR services in India can accelerate your success.

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Founder of SetMyCompany.com

About the Author / Local Compliance Expert

Meet Your Guide to the Indian Market:

Jai Kumar Shah

When you partner with us, you're not just getting a service; you're gaining an expert with a proven track record.

For over a decade, Jai Kumar Shah has been the driving force helping international businesses succeed in India. Since 2012, he has personally guided over 85 companies—from ambitious startups to established global players—in navigating the Indian market.

Unmatched Expertise
With over 10 years of dedicated experience, Jai understands the nuances of Indian business culture, compliance, and talent acquisition. He makes the complex simple.
Solutions for Foreign Companies
We know that a one-size-fits-all approach doesn't work. Jai and his team craft personalized strategies to ensure your journey into India is smooth, successful, and aligned with your business goals.
Proven Success
Our track record speaks for itself. We bring a relentless drive for excellence and a history of achieving outstanding results for our international clients.
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Jai Kumar Shah

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