Hire in India

Pay and benefits

Wages

Minimum wages are determined by the nature of employment, industry, geographic location, and the employee’s age. Additionally, minimum wages may differ depending on whether the labor is unskilled, semi-skilled, skilled, or highly skilled.   

A minimum wage floor is set by the central government — the National Floor Level Minimum Wage (NFLMW). States may set their own minimum wages, but these wages cannot go below the minimum set by the central government.  

As an example, the monthly minimum wage set in Delhi (effective October 1, 2023) is 17,494 INR for unskilled labor and 21,215 INR for skilled labor. There is no minimum monthly wage for highly skilled labor in Delhi.  

In the neighboring state of Haryana, the monthly minimum wage for unskilled workers is 10,924 INR; 12,646 INR for “Class A” skilled workers; and 13,278 INR for “Class B” skilled workers, effective as of January 1, 2024. In Haryana, the monthly minimum wage is set at 13,942 INR for highly skilled workers.    

Salaries  

Salaries in India vary widely across professions. Here are the average annual salaries for professionals in a small sample of functions.   

• Accounting, administration, and human resources: 601,660 INR 

• Banking, finance, and insurance: 827,614 INR 

• Engineering: 616,473 INR 

• Healthcare, pharmaceutical, and social services: 421,833 INR 

• IT: 851,854 INR

Salaries by location in India

• Bengaluru is known for offering salaries 23% higher than the national average for junior roles and 9% higher for mid-level roles, especially in sectors like IT, financial services, and manufacturing. 

• Mumbai offers salaries 12% higher than the national average for senior positions, particularly in finance and banking. 

• Delhi NCR (National Capital Region) salaries have declined, now ranking below the national average for mid-level and senior positions, possibly due to factors like air quality and civic services. 

As your employment partner in India, Safeguard Global can provide you with resources and insights about average employee compensation in various job positions, so you can be better equipped to make a competitive employment offer. 

Payroll frequency  

In India, monthly salary payments are the most common for salaried employees such as white-collar professionals, government workers, and corporate employees. These salaries are usually paid at the end of the month or within the first week of the following month.  

Weekly payments are common in industries employing daily wage workers, laborers, construction workers, and some contractual employees, with wages typically paid once a week on Fridays or Saturdays. Daily wage workers, such as agricultural laborers, factory workers, and construction workers, are usually paid at the end of each working day. 

Bi-weekly (twice a month) payments are sometimes used for freelance workers or contractual employees, with wages disbursed every 15 days. In addition to regular wages, annual payments are made for bonuses and incentives, benefiting corporate employees, government workers, and public sector unit (PSU) employees. 

Bonuses and additional payments

In India, the Payment of Bonus Act of 1965 mandates a minimum annual bonus of 8.33% of annual wages for certain workers. The maximum bonus allowed by law is 20%, and the percentage the employer applies for must be the same for all eligible employees. Those who earn higher wages / salaries may receive the “13th month pay” as a bonus, though this is not mandatory.