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Overview of India

India is a large country in south Asia with a very versatile landscape ranging from the Himalayan mountains in the North to the Indian Ocean in the South. With a population of 1.35 billion, more than 17% of the world’s total population lives in India. New Deli is the capital of India and the official language is Hindi. Many however also speak English or a local language. India is a constitutional republic and is divided into 29 states. It is one of the most ethnically diverse countries in the world. The world famous Taj Mahal is located in India. About 70% of the world’s spices come from India.

As there are many Indias within India, be aware of cultural diversity. Indians are stongly guided by their values and they place huge value on family and community. Building a good business relationship is important so be prepared for small talk and personal questions about your family. Expect to spend plenty of time at social activities. Ensure you are punctual to meetings, even if the Indian counterpart may not be.

Currency of India

  • Indian Rupi

Health Insurance and the Social Security system of India

India has a universal healthcare model. It is not centralized by the federal government but is administered at the state level. The public system is financed through general taxation and is mostly free for all Indian residents except for small, often symbolic, co-payments. There are vast differences in the quality of healthcare throughout the country and especially between rural and urban areas.

The private medical sector caters to approx. 70% of the households in urban areas and about 60% of the households in rural areas as private healthcare is of higher quality.

Employer cost of India

The cost for an employer to hire someone in India is a plus of 12.00% to the gross salary.

Salary and bonuses of India

Regular employees are paid monthly.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in India

India has 3 national public holidays:

  • January 26th – Republic Day
  • August 15th – Independence Day
  • October 2nd – Gandhi Jayanti
  • In most states, the following are also declared bank holidays:
  • January 1st – New Year’s Day
  • March 11th – Maha Shivaratri
  • March 29th – Holi
  • moveable – Good Friday
  • April 13th – Agadi
  • April 14th – Dr Ambedkar Jayanti
  • April 21st – Ram Navami
  • April 25th – Mahavir Jayanti
  • May 1st – May Day
  • May 13th – Idul Fitr
  • May 14th – Idul Fitr
  • May 26th – Buddha Purnima
  • July 20th and 21st – Bakrid / Eid al Adha
  • August 19th – Muharram
  • August 22nd – Raska Bandhan
  • August 30th – Janmashtami
  • September 10th – Ganesh Chaturthi
  • October 2nd – Gandhi Jayanti
  • October 13th and 14th – Maha Ashtami
  • October 15th – Vijaya Dashami
  • October 19th – Eid e Milad
  • November 4th – Diwali
  • November 6th – Deepavali
  • November 19th – Guru Nanak Jayanti
  • December 25th – Christmas

Working Hours in India

Office hours are from 9:30am to 5:30pm, Monday to Friday.

A regular work week is 48 hours.

Overtime is paid at double the hourly rate.

Vacation in India

In India, an employee is entitled to one day off for every 20 days worked – this equates to 15 paid days off. A maximum of 30 vacation days can be carried over into the next year.

Sick Leave in India

Employees covered by the ‘Employee State Insurance Act’ are entitled to sick pay. It is around 70% of the average daily wage. The length differs depending on the Act:

  • 15 days of sick leave under the Apprentices Act

  • 30 days of sick leave for 18 months of service under the Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act

  • At least 1/18th of the period worked under Sales Promotion Employees (Conditions of Service) Act

Termination/Severance in India

In India, there is no standard procedure when terminating an employee. An employer may terminate the employee per the rules laid out in the employment contract. However, should any labor laws apply, they always supersede the provisions of the labor contract.

An employee can be terminated without reasons in the case of for example: theft, habitual late attendance or absence without leave for 10 days or more.

When terminating an employee for convenience, the last employee to have joined is the first to be let go. A 30 day notice period should be given in this case.

A severance pay is only owed when the employee has been with the company for longer than 2 years and the reason for the termination is redundancy. The severance pay is calculated on an individual basis, dependent on the duration of employment, performance and salary level.