Employment contract
The four Labour Codes took effect on 21 November 2025. Every employee must receive a written appointment letter stating matters such as role category, wages and social security. Terms should also cover work location, hours, probation, leave, confidentiality/IP, notice, applicable policies and disputes, and match payroll and actual control. The central Codes do not displace more favourable state Shops and Establishments rules, sector rules or collective terms; identify the appropriate government and whether the person is a worker, supervisor or managerial employee first.
Probation
The Labour Codes do not create one universal probation period, automatic confirmation date or dismissal-at-will rule for every private employee. Duration and assessment follow the appointment letter, applicable state Shops and Establishments law, standing orders and collective terms; common practice is not the legal answer. Probationers retain minimum-wage, timely-pay, social-security, maternity, non-discrimination and safety protection, and an exit must still fit classification, reason, notice and procedure.
Hours, rest & overtime
The 2026 central rules and Ministry FAQ use an eight-hour day and 48-hour week baseline for covered workers, with overtime at twice normal wages beyond the applicable daily/weekly threshold and prior written worker consent. Scheduling, breaks, spread-over, weekly rest and safeguards for women on night work still depend on the appropriate government, sector and more favourable state law. These hours/leave provisions do not automatically cover every highly paid supervisor or manager; do not promise 8/48 to every role or misstate a 12-hour spread-over as a 12-hour normal shift.
Minimum wage by region
Minimum-wage entitlement extends to all workers, but there is no single rupee figure for every role nationwide. The Central Government sets a floor wage and the appropriate central or state government fixes minimum wages—by skill, occupation, area and working conditions—not below that floor. Use the latest notification for the actual work location and category. The wage definition can add back allowances exceeding the 50% exclusion limit, so renaming pay as allowances does not avoid minimum wage, social security or gratuity.
Salary & talent supply
Statutory minimum wages, EPF/ESI thresholds and visa pay conditions are not market offers. A benchmark should state city (for example Bengaluru, Mumbai or Delhi NCR), job family, level, sector, experience, sample period and whether it means basic pay, fixed cash, CTC or equity. Cross-check candidate supply through NCS and dated vacancies; do not present an all-India average or one commercial-platform number as the role median.
Payroll, payslip & payment
Pay wages by the statutory deadline after the applicable wage period through an auditable method and provide a payslip. Monthly pay, attendance, overtime, bonus, deductions and net pay must reconcile to the appointment letter and registers. Handle state-specific profession tax and Labour Welfare Fund by actual work location, plus salary TDS, quarterly reporting and Form 16 under tax law. Final settlement is not merely the last month’s salary: reconcile unused leave, bonus, gratuity, notice and lawful deductions.
PIT withholding & social insurance
EPF is generally 12% from employee and employer. A ₹15,000 monthly wage ceiling commonly applies to domestic employees, but voluntary higher wages, existing membership and International Worker rules can change the base. For an international worker verify passport, SSA, certificate of coverage and EPS joining date; never apply ₹15,000 universally. ESI currently uses 0.75% employee and 3.25% employer contributions with a ₹21,000 wage coverage ceiling; after the 2025 Codes, establishments above ten are generally mandatory, smaller ones may opt in and hazardous processes can be covered with one employee. Income tax is annual under AY2026-27 rules; the ₹12 lakh section 87A rebate is not blanket tax exemption for every salary case.
Employer-cost calculator scope
The calculator is a budget estimate only: it approximates EPF at 12%/12% (₹15,000 ceiling for domestic employees and no ceiling for an International Worker proxy), ESI at 0.75%/3.25% where wages do not exceed ₹21,000, and AY2026-27 new-regime tax slabs. It does not model EPF history/SSA/EPS, the 50% wage definition, state minimum wages or profession tax/LWF, bonus, gratuity, insurance, leave, overtime, tax residence, surcharge or personal deductions. It is not an EPFO, ESIC or income-tax filing result.
Annual leave
A worker covered by the OSH Code generally earns one day of paid annual leave for every 20 days worked after working 180 days in a calendar year. Carry-forward is generally capped at 30 days, leave applied for but refused is not subject to that cap, and accrued leave is settled on separation. The 2026 FAQ says these Code leave provisions cover workers and supervisors earning no more than ₹18,000, not every manager or corporate employee; others require the actual state Shops and Establishments law, contract and more favourable policy.
Public holidays & overtime
India has no single complete holiday list that can be applied unchanged to every private employee. Republic Day, Independence Day and Gandhi Jayanti are generally mandated through state National and Festival Holidays regimes, with additional festivals selected by each state. Overlap, substitute leave, holiday-work pay and optional holidays follow the work state, sector, notification and contract. A government-office or bank calendar is not automatically the private-employment payroll rule.
Family & medical leave
An eligible woman generally receives 26 weeks’ maternity benefit for the first two surviving children (up to eight weeks pre-delivery), and generally 12 weeks where she already has two or more surviving children. Adoption of a child below three months and commissioning motherhood generally receive 12 weeks. Establishments with 50 or more employees must provide a crèche, available irrespective of gender; maternity pay, medical bonus and dismissal protection follow the Social Security Code. Private employment has no universal national statutory paternity leave; sick, casual and care leave often depend on state law, sector, contract or policy.
Statutory & market benefits
Minimum wages, statutory bonus for eligible employees, EPF/ESI, gratuity, maternity, injury/safety and statutory leave are not optional benefits. The statutory bonus wage eligibility threshold is generally ₹21,000/month, calculated on ₹7,000 or the applicable minimum wage if higher, at 8.33%–20%; it is not a one-month CTC bonus for every professional. Private medical, life cover, meals, transport, equity and a 13th-month payment are not universally statutory, although contract, policy or established practice may make them payable.
Termination & disputes
First distinguish worker, fixed-term employee, manager, misconduct, resignation, retrenchment and closure. An IR Code-protected worker with one year’s continuous service who is retrenched generally receives one month’s notice or pay in lieu, 15 days’ average pay per completed year, plus 15 days’ wages into the reskilling fund. Industrial establishments with 50–299 workers have government-notice duties; specified establishments with 300+ generally need prior permission. For non-workers, notice, reason and compensation mainly follow contract, state Shops and Establishments law and general law; pay in lieu is not a universal right to dismiss without cause.
Contractor classification
Employee/worker, independent contractor, contract labour and gig/platform worker are distinct tests. Examine real control, scheduling, integration, substitution, tools, economic risk and customer concentration—not merely invoices or a “consultant” label. With labour contractors, the principal employer can still face wage, EPF/ESI, safety and licensing exposure. A fixed-term employee is directly engaged by the employer in writing with parity to comparable permanent workers; it is not the same as agency labour or independent contracting.
Foreign workers
Company registration, directorship, an offer, a Business Visa or entry alone does not create work rights. Before work starts, a foreign national needs an Employment Visa/permission matching the genuine employer, role, location and term; longer assignments also require FRRO/FRO registration plus tax and professional/sector checks. Indian labour protections apply, while EPF International Worker rules may require contributions on full wages unless an SSA detached worker holds a Certificate of Coverage. Director/shareholder status replaces none of these steps.
Recruiting channels
Use the free NCS employer service to test local candidate supply, then select specialist channels by role, city and seniority. NCS expressly does not guarantee user-submitted information, so verify identity, qualifications, background-check consent and recruiter terms. Use job-necessary criteria and document decisions; do not claim one commercial platform is “best.” Do not impose undisclosed candidate fees, and for cross-border recruitment verify visa, eMigrate/protected-category and agency-licensing boundaries.
Retirement age
Indian private employment has no single nationwide mandatory retirement age for every role. Retirement/termination age comes from applicable state law, standing orders, service rules, contract or collective terms; EPF/EPS benefit age is distinct from continued employment. Do not automatically stop payroll or employment at 58 or 60: check the applicable regime, non-discrimination/reasonable accommodation, extension and social-security treatment.
Employment compliance calendar
Before hire: work state, appropriate government, worker classification, latest minimum wage, appointment letter, visa/FRRO, EPF/ESI and state registrations. Monthly: 8/48 coverage, attendance, double overtime, payslips, TDS, EPF/ESI, profession tax/LWF and receipts. At change/exit: reason, notice, final wages, unused leave, bonus, gratuity, reskilling fund, social security and immigration status. Annually review floor/minimum wages, state S&E/holidays, Code rules, Form 16, registrations/licences, POSH committee, crèche, safety training and contractor audit, retaining owner, deadline, evidence and recovery for each control.