Service · EOR India
How EOR works for hiring engineers in India — what's included and what it costs
An Employer of Record (EOR) in India is a company that legally employs your hire on your behalf — handling contracts, payroll, PF, ESI, TDS, and statutory compliance — so you can build a team in India without setting up your own entity. TWF Labs is an India-specialist EOR for non-Indian startups, built around the 2025 Labour Codes.
What an EOR does
An EOR sits between you and your India hire as the legal employer. Operationally, your engineer reports to your team and works on your roadmap. Legally, they hold a fully compliant Indian employment contract under the EOR arrangement. We run payroll, withhold and remit TDS, file PF/ESI returns, and manage the engagement end to end — absorbing the operational surface area.
What's included
- Compliant Indian employment contract (post-Nov-2025 Labour Code structure)
- Onboarding within 5–10 business days of offer-accept
- Monthly payroll, payslips, and TDS deduction + filing
- EPF, ESI, Professional Tax, and gratuity accrual
- Leave, attendance, and HR support
- IP assignment and standard NDA from day one
- Quarterly compliance brief — what changed, what it means for you
What it costs
EOR is $129per engineer per month, flat and all-in. Total loaded cost is your engineer's gross salary plus statutory loadings (PF, ESI, gratuity, Professional Tax) plus our fee. Services to overseas clients are generally treated as zero-rated exports under Indian GST, so no GST is added where the export conditions are met; any taxes that do apply are shown on the invoice as required by law.
EOR vs setting up your own Indian entity
Setting up an Indian subsidiary takes roughly 4–8 weeks and ~$5–15k in setup, plus monthly compliance you carry forever: ROC filings, statutory audit, board resolutions, FEMA reporting, transfer pricing. An EOR is structured to handle it for hires below roughly 15–25 FTEs in India — at which point a subsidiary may start making sense.
| EOR (TWF Labs) | Your own Indian entity | |
|---|---|---|
| Time to first hire | 5–10 business days from offer-accept | 4–8 weeks setup, then hire |
| Setup cost | $0 | ~$5–15k incorporation |
| Ongoing compliance | Included | ROC, audit, FEMA, transfer pricing |
| Statutory filings (PF/ESI/TDS) | We file | You file |
| Permanent establishment risk | Structured to mitigate | You manage |
| Right level for | 1–15 India FTEs | 15+ India FTEs |
EOR vs contractor — why substance beats the label
The cheapest-looking option is to pay an “independent contractor” in India. If that person works full-time, on your roadmap, with your tools, the substance of the relationship is employment regardless of the contract label. In diligence that surfaces as questions about IP ownership and an unclean cap-table footnote — exactly when you have the least leverage to fix it. The same gap also carries a financial tail: a reassessment can bring back-payment of PF, ESI, TDS, and gratuity, plus interest. An EOR-employed engineer is properly employed from day one.
How onboarding works
- Offer-accept is the trigger. We collect KYC and statutory documents the same day.
- Compliant employment contract issued within 24 hours.
- EPF, ESI, and Professional Tax registrations completed.
- Engineer starts; payroll runs in the next monthly cycle.
- Onboarding complete within 5–10 business days of offer-accept.
What the 2025 Labour Codes changed for foreign employers
India consolidated 29 labour laws into four Codes (Wages; Social Security; Industrial Relations; OSH) which came into force on 21 November 2025. The most material change for hiring through an EOR is the “50% rule”: basic wages plus DA must be at least 50% of CTC. This shifts PF and gratuity outflow upward and changes how senior-engineer CTCs need to be structured.
The Codes are in force at the central level; several central and state-level rules under them are still being finalised through 2026. We track these as they land and reflect them in every contract we issue.
Legal and advisory firms broadly describe the 2025 Labour Codes as the most significant overhaul of Indian labour regulation in decades, requiring employers to review compensation structures, employment contracts, and worker classifications.
FAQ
Common questions, direct answers.
Do I need an Indian entity to hire engineers in India?
No. With an Employer of Record like TWF Labs, your hire is employed in India on a fully compliant local employment contract while working full-time for you. You skip incorporation, board appointments, FEMA filings, and the ongoing cost of running a subsidiary you don't otherwise need.
What is included in TWF Labs' EOR service?
A compliant employment contract, onboarding, monthly payroll, statutory contributions (PF, ESI, Professional Tax, gratuity accrual), TDS deduction and filing, leave and HR support, and full alignment with India's 2025 Labour Codes.
What does EOR in India cost?
EOR is $129 per engineer per month, flat and all-in. Use the cost calculator on our pricing page to see the full loaded cost including the statutory contributions India requires on top of gross salary.
Who owns the IP my EOR-employed engineer produces?
You do. IP and inventions are assigned to your company from day one in the employment contract, alongside standard NDAs and confidentiality clauses. We deliberately mirror US/UK assignment language so your counsel can review it quickly.
What happens when we want to offboard someone?
We handle notice, full-and-final settlement, gratuity (where applicable), exit interviews, and statutory closures. Indian notice periods and gratuity rules differ materially from the US — we run them so you don't have to learn them.
Are you compliant with India's 2025 Labour Codes?
Yes. The four Codes (Wages; Social Security; Industrial Relations; OSH) came into force on 21 November 2025; several central and state-level rules under them are still being finalised through 2026, and we track these as they land. Every contract we issue is built around the post-Nov-2025 mechanics, including the '50% rule' (basic + DA ≥ 50% of CTC).
Hire your first India engineer through TWF Labs.
Free intro call. Pricing included. Founder-replied within 24 hours.