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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

Hiring in India without local expertise can be challenging for US and global companies.

Common challenges include:

  • Understanding Indian labor laws and state-specific regulations
  • Setting up payroll and statutory compliance systems
  • Managing employee benefits and leave policies
  • Handling employment contracts and terminations legally
  • Delays caused by entity setup and legal approvals

Our Solution – Seamless India Employment Through PEO & EOR Services

Our Professional Employer Organization (PEO)  and Employer of Record (EOR) services in India eliminate these barriers.We enable companies to:

  • Hire employees in India without establishing a legal entity

  • Stay compliant with central and state labor laws

  • Reduce legal, payroll, and HR overhead

  • Enter the Indian market faster and with confidence

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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

    Our India PEO and EOR services are designed to support your expansion from day one.
    Business Analysis & Hiring Strategy
    Faster Hiring & Onboarding
    Payroll & Compliance Management
    Scalable HR Support
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    WORLD WIDE BUSINESS
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    BUSINESS PARTNER
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    BUSINESS PROFIT
    Services

    Hire in India Without an Entity

    Our Employer of Record (EOR) services in India allow you to legally hire employees without registering an Indian subsidiary. Under the EOR model:


    • We become the legal employer of your India-based staff
  • You manage day-to-day roles and responsibilities

  • We handle payroll, compliance, and employment risk

  • Expert Payroll and Compliance Services in India

    Payroll and compliance errors in India can lead to penalties and legal disputes. Our India PEO services ensure 100% accuracy.

    Payroll Services Include
    • Monthly payroll processing in Indian Rupees (INR)

    • Income tax (TDS) deductions and filings

    • Payslip generation and annual tax forms
    Statutory Compliance Coverage
    • Provident Fund (PF)
  • Employee State Insurance (ESI)

  • Professional Tax

  • Gratuity and bonus compliance

  • 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 understand your business goals, hiring plan, and compliance needs.

    Identify & Onboard

    We prepare compliant employment contracts and manage onboarding documentation.

    Manage & Pay

    Employees are added to our payroll system, ensuring timely and accurate salary payments.

    Support & Scale

    We provide ongoing HR, compliance, and employee support as your team grows.

    India PEO & EOR Services – Detailed Overview

    What Are PEO Services in India?
    A Professional Employer Organization (PEO) in India helps companies manage HR, payroll, compliance, and benefits while the client retains operational control.
    What Is Employer of Record (EOR) in India?
    An Employer of Record (EOR) becomes the legal employer, allowing companies to hire in India without a local entity.
    Both models ensure compliant and efficient workforce management.

    Employment Contracts in India 

    Key elements typically included in Indian employment contracts:

    Indian labor law strongly recommends written employment contracts.
    • 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 statutory labor laws.

    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

    Employees in India are entitled to statutory and company-defined leaves.

    Common statutory leaves include:

    • Earned / Annual Leave (15–20 days per year)
    • Sick Leave (varies by state)
    • Maternity Leave (26 weeks)
    • Public and national 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
    • Severance and gratuity may apply
    • Improper termination can lead to legal disputes

    Our India PEO services ensure lawful and documented exits.

    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

    FCA/CA/CS/CMA

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