Employer of Record India

India Statutory Leave

Employer of Record India

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Maternity Leave in India

In India, maternity leave is legally protected under the Maternity Benefit Act, 1961. The act mandates that women who have worked for at least 80 days in the 12 months prior to their due date are entitled to 12 weeks of paid maternity leave. This leave can be taken before or after the birth of the child, and it must be taken in one continuous period. 

During the maternity leave, the employer is required to pay the employee their full salary or the average of the salary for the previous three months, whichever is less. However, it’s worth noting that not all companies follow this law and some women might not be covered under this act. Also, it’s only for mother’s not for father’s, so there is no paternity leave in India.

Paternity Leave in India

In India, there is no national law mandating paid parental leave. However, some companies offer paid or unpaid leave for new parents, but it varies greatly from company to company and is not guaranteed.

Fathers are not legally entitled to any paid paternity leave in India. Some states and municipalities have implemented their own parental leave policies, but they are not yet widespread. Overall, the availability and length of parental leave in India is quite limited compared to many other countries.

India Annual Leave

In India, there’s no specific law that mandates a certain number of annual leave days for employees. However, many companies offer their employees a certain number of paid vacation days. The number of days can vary depending on the company and the employee’s role or seniority. Typically, employees will accrue between 12 and 21 vacation days each year, and they can use those days to take time off. 

Some companies also have a “use it or lose it” policy, where employees must use their vacation days before the end of the year or they will lose them.

Public Holidays 

There are three federal holidays, but states and communities may observe additional days off for various reasons, including religious and cultural observances. 

  • Republic Day 
  • Independence Day 
  • Mahatma Ghandi’s Birthday 

Casual Leave in India

In India, casual leave is a type of leave that employees can take for personal reasons, such as a family emergency or a personal trip. Many companies offer a certain number of casual leave days per year, but the number of days can vary depending on the company and the employee’s role or seniority.

It’s worth noting that casual leaves are usually unpaid and do not count towards an employee’s annual leave days. Also, the number of casual leaves offered by the companies are usually less than the annual leaves.

Overall, casual leave in India is a flexible way for employees to take time off for personal reasons, but the specific policies can vary greatly depending on the company. So, it’s best to check with your employer about their specific policy.

Sick Leave in India

Generally speaking, after a two-day delay, ESIA-protected workers earn somewhere about 70% of their typical daily income. This varies by state, though.


 The maximum number of consecutive days covered is 91, split evenly between two periods of six months. While some states provide no sick leave or benefits at all, others, like Gujarat for example, provide for only seven days of paid sick leave each year. 

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We are India Employer of Record experts

We have extensive experience helping businesses expand their workforce in India. Take a look at our areas of expertise to find out more:

Find out how payroll works in India and what you can expect when it comes to salaries, bonuses and rates of pay

We will take care of all Payroll, HR and Legal processing with a  fully-manged EOR service in India. 

Unsure what’s required when employing staff in India? Find out about India Work Permits and Visas here


Wondering what it’s like to work in India? We’ve got you covered in our extensive guide


Learn more about how you can attract and retain staff in India with both statutory and enhanced employee benefits

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira
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Frequently Asked Questions

Payrolling the employees is a key part of the service offered by an Employer of Record company. The Employer of Record will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.

Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.

Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.

We find that most of our clients are in the Tech, IT, Finance, NGO (Not for Profit) and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.

As a private company, we’re not beholden to shareholders Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so. 

We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.

We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!