What is an Employer of Record (EOR)?
As an employer, In the normal course, you have to set up a legal entity or an office in the country where you want to hire employees. However, an Employer of Record allows you to hire employees without setting up an entity.
In other words, an EoR enables you to hire, manage, and pay employees in countries where you lack a legal presence by acting as an intermediary to streamline the employment process. From recruitment and onboarding to payroll, taxes, and local compliance, a reliable EOR handles it all.
Inrole as your EoR
India is a hub for hiring skilled, English speaking talent and particularly popular for hiring “Tech talent”. However, navigating the process of setting up a legal entity and hiring employees in India can be complex and time-consuming. With Inrole’s EoR service, you can:
We have been operating in the Indian market for over 40 years and understand the complexities and nuances of local employment laws from legal contracts to tax to payroll processing . With our practical experience, we built Inrole which automates workflows straight from Onboarding to Off-boarding.
We offer cost-effective solutions that don't strain your budget, setting us apart from our global counterparts. You can start hiring at $149/ employee / month and $39/ contractor/ month.
If you choose to set up a subsidiary or an office in India at a later stage, Inrole will help you register your business and handle your accounting, taxation and payroll and legal compliances.
An employer is required to deduct TDS on salary at the time of disbursing salary payments. An employer has to deposit TDS with the the Income Tax Department If the employee’s annual income is beyond a certain threshold i.e. Rs 5,00,000 per annum
This scheme is governed by the Employees Provident Fund Act 1952 and is one of the key schemes that help employees build a retirement corpus. Under the EPF scheme, both employer and employee contribute equally to the EPF account every month. However, it is the employer’s responsibility to deposit the whole amount to the EPF account. After which the employee’s share is deducted from their monthly salary. The EPF scheme mandatorily applies to all the establishments that have employed a minimum of 20 people.
ESI is a Social Security Scheme designed to provide socio-economic protection to employees. It is governed by the Employees State Insurance Act, 1948 and is governed by the Employees' State Insurance Corporation. It protects employees against sickness, maternity, disability, and death because of a work-related injury, as well as provides medical care to insured employees and their families.
Gratuity is severance pay governed by the Payment of Gratuity Act, 1972 and is provided to employees in return for their services once they have completed a tenure of five years. The employee is eligible to get gratuity before five years in case of an accident, death, disablement due to a disease. Gratuity amount is equal to 15 days’ salary for each year of service.
There is no law or guideline for the probation period. The standard probationary period for new employees is three to six months.
The Maternity Benefit Act 1961 applies to all women employed in factories, mines, plantations, and organizations with 10 or more employees. 26 weeks of leave is to be provided to expecting mothers as per this act.
Want to know more ? reach out to Inrole's experts at info@inrole.io or connect with us on whatsApp at +919818644558!