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India Hiring Compliance Checklist 2024

Comprehensive checklist for hiring employees in India. Ensure compliance with PF, ESI, gratuity, professional tax, and legal requirements for global companies.

Pre-hire compliance

Before hiring in India, decide whether the worker should be an employee, contractor, or EOR-managed employee. Confirm entity, payroll, and employment documentation requirements before an offer is signed.

  • Define worker classification
  • Prepare compliant offer and appointment letters
  • Collect identity, tax, bank, and address documents
  • Confirm applicable state registrations

Payroll and statutory setup

Payroll setup should account for social security, professional tax, gratuity, and local employment requirements. The exact applicability depends on salary, headcount, state, and establishment type.

  • Provident Fund registration and deductions
  • ESI applicability check
  • Professional tax by state
  • Gratuity accrual and leave policy alignment

Onboarding and records

Keep onboarding records consistent and audit-ready. Employee files should cover signed contracts, policy acknowledgements, payroll declarations, and equipment handover.

  • Signed appointment letter
  • Code of conduct and data policy acknowledgement
  • Leave and attendance setup
  • Asset handover and access provisioning
India Hiring Compliance Checklist 2024 | MonoHR