India

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in India. See a sample of popular sections below.

Termination of Employment

Employees who have worked for at least one year must be given written notice to terminate their contracts. The duration of notice period depends on the number of employees in the establishment and reason for termination:

  • Establishments with at least 50 employees - 1 month 
  • Closure of establishment with at least 50 employees - 60 days
  • Establishments with at least 300 employees - 3 months 

Work Permits

India issues Employment or E visa for one year or the term of the contract in India (up to five years) to highly skilled and/or qualified foreign nationals who wish to work in India. E visa can only be issued to an employee of an organization registered in India. Foreigners traveling to India to do volunteer work with a Non-Governmental Organization will also need an E visa. E visa is also required for self-employed individuals, consultants, foreign artists conducting regular performances, specialists, etc. 

The foreign national being sponsored for an E Visa in any sector must have an annual salary above INR 1,625,000. However, this condition does not apply to ethnic cooks, language teachers or translators and staff working for an embassy in India.

Paid Annual Leave

India's Maternity Benefit Act grants every female employee, with less than 2 surviving children, of a company with at least ten employees 26 paid weeks of maternity leave that can begin up to eight weeks prior to the due date. Women may not be employed during the first six weeks following the day of delivery or miscarriage.

To obtain maternity benefits, an employee must work for at least 160 days in the 12 months preceding the expected delivery date. A female worker must give notice to her employer in writing and state when she wishes to take time off from work. If no notice is provided, maternity benefits begin the date she is absent from work to give birth. The amount of the benefit is equal to 100% of the wages paid by the employer.

Working Hours

According to the Occupational Safety, Health and Working Conditions Act 2020 of India, no employee can be required or allowed to work in any establishment for more than eight hours a day and six days a week. Children under the age of 18 years cannot be employed for more than six hours a day, no more than three hours without break.

The periods of hours of work for all categories of workers must be exhibited on the notice board of the industrial establishment. The Factories Act stipulates that no adult shall be allowed to work in a factory for more than 48 hours in any week and not more than nine hours in any day.

If an employer is involved in a commercial activity, the regional shops and establishments statutes provide the applicable regulations. Generally, they include maximum nine hours per day and 48 hours per week.

Maternity Leave

India's Maternity Benefit Act grants every female employee, with less than 2 surviving children, of a company with at least ten employees 26 paid weeks of maternity leave that can begin up to eight weeks prior to the due date. Women may not be employed during the first six weeks following the day of delivery or miscarriage.

To obtain maternity benefits, an employee must work for at least 160 days in the 12 months preceding the expected delivery date. A female worker must give notice to her employer in writing and state when she wishes to take time off from work. If no notice is provided, maternity benefits begin the date she is absent from work to give birth. The amount of the benefit is equal to 100% of the wages paid by the employer.

Minimum Wage

Under the Code on Wages, 2019, states and territories of India have the authority to establish their own minimum wage rates, as the national floor-level minimum wage is only an advisory recommendation. Because of this structure, different jurisdictions' minimum wage rates vary considerably.

Some states and territories update minimum wage rates twice a year, with the changes generally taking effect April 1 and October 1; however, basic rates are not always updated on these dates, and the frequency with which jurisdictions update their minimum rates varies. Depending on the jurisdiction, rates are updated:

  • once a year with effective dates on January 1 or July 1
  • twice a year on January 1 and July 1
  • with an effective date other than those listed above
  • less frequently than on an annual basis

The updates to the minimum wage rates, sometimes called "dearness allowances," are typically calculated to account for inflation and cost of living increases.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within India.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in India.