India: Pay and benefits

Original author: Kochhar & Co
Updating author: Trilegal
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Summary

• Statute regulates certain aspects of pay and benefits for various categories of workplace and employee. (See General)
• Generally, employees earning up to INR 24,000 per month who work in factories and certain other establishments must be paid at least monthly, in cash or by cheque or direct deposit into their bank account. (See Payment of wages)
• With regard to employees earning up to INR 24,000 per month who work in factories and certain other establishments, only deductions specified by statute may be made from their wages, and the total amount of deductions in any wage period is limited. (See Deductions)
• Employers are prohibited from paying any employee remuneration at a rate less favourable than that paid by them to employees of the opposite sex for performing the same work or work of a similar nature. (See Equal pay)
• There is no single national minimum wage rate, but the central Government and the governments of individual states set statutory minimum wages for particular industries and types of work. (See Minimum wages)
• In the private sector, the main form of statutory pension provision is an occupational system administered by the Employees' Provident Fund Organisation, which generally applies to establishments where 20 or more people are employed, in specified sectors of the economy. (See Pensions)
• Employers are obliged to deduct income tax due from employees' pay at source. Relevant employers and employees must pay contributions to the statutory Employees' State Insurance scheme, which applies to certain types of establishment with a certain number of employees. (See Income tax and social security)
• Employees covered by the Employees' State Insurance scheme are entitled to sick leave and benefits, while the statutory sickness-related entitlements of other employees depend on their employment status and the nature and location of the establishment where they are employed. (See Sick pay)
• Benefits in kind are not usually regulated by law and are subject to discretion of the employer. (See Benefits in kind)
• Employees may be entitled to paid compensation when laid off by their employer in industrial establishments employing 50 or more workers. (See Lay off)
• In factories, and in all other establishments with 20 or more employees, employees are generally entitled to be paid a statutory bonus. (See Mandatory bonuses)