Latest news with #EOR
Time Business News
2 days ago
- Business
- Time Business News
Whistleblower Protection: Global Laws HR Must Know
Whistleblower protection laws represent one of the most complex and rapidly evolving areas of global employment compliance, making Employer of Record (EOR) services absolutely critical for companies operating across multiple jurisdictions. The consequences of failing to properly implement whistleblower protection programs can include massive financial penalties, criminal liability for executives, and devastating reputational damage that can destroy decades of business development and stakeholder trust. Employer of Record providers offer sophisticated compliance frameworks specifically designed to navigate the intricate web of whistleblower protection laws across different countries and regulatory systems. Unlike companies attempting to manage these complex requirements independently, EOR services provide expert guidance, comprehensive policy development, and ongoing compliance monitoring that ensures full adherence to whistleblower protection obligations in every jurisdiction where they operate. The strategic importance of whistleblower compliance extends far beyond avoiding penalties—effective whistleblower programs can actually strengthen organizations by identifying problems early, preventing larger crises, and demonstrating commitment to ethical business practices. EOR providers understand that whistleblower compliance isn't just about legal requirements; it's about building sustainable, trustworthy organizations that can operate successfully in highly regulated global markets. For companies with international operations, the complexity of whistleblower laws across different legal systems, cultural contexts, and regulatory frameworks makes EOR services the only practical solution for comprehensive compliance and risk management. Whistleblower protection laws vary dramatically across jurisdictions, creating a complex compliance environment that requires sophisticated understanding and careful management. Key international whistleblower systems include: • United States: Sarbanes-Oxley Act, Dodd-Frank Act, and various industry-specific protections • European Union: EU Whistleblower Protection Directive 2019/1937 and national implementations • United Kingdom: Public Interest Disclosure Act and recent regulatory enhancements • Australia: Corporations Act whistleblower protections and Treasury Laws Amendment Act Different jurisdictions protect various types of disclosures: • Financial misconduct: Securities fraud, accounting irregularities, and financial reporting violations • Safety and environmental issues: Workplace safety violations and environmental law breaches • Corruption and bribery: Anti-corruption violations and conflicts of interest • Consumer protection: Product safety issues and consumer fraud Whistleblower laws typically provide: • Retaliation prohibitions: Legal protection against adverse employment actions • Confidentiality safeguards: Protection of whistleblower identity and disclosure content • Financial incentives: Monetary rewards for qualifying disclosures in some jurisdictions • Legal remedies: Compensation and reinstatement for retaliation victims EOR providers navigate this complexity through: • Multi-jurisdictional expertise: Deep knowledge of whistleblower laws across all operating countries • Integrated compliance programs: Comprehensive policies that meet requirements in all relevant jurisdictions • Ongoing monitoring: Continuous tracking of legal changes and compliance obligations • Risk management: Professional assessment and mitigation of whistleblower-related risks Employer of Record services provide comprehensive whistleblower compliance programs that ensure full legal adherence while creating effective reporting and response mechanisms. EOR providers create: • Multi-jurisdictional policies: Comprehensive policies that comply with laws in all operating countries • Cultural adaptation: Policies adapted to local business cultures and communication styles • Language accessibility: Policies available in local languages and understandable formats • Regular updates: Ongoing revision to reflect changing legal requirements and best practices Comprehensive reporting mechanisms include: • Multiple reporting channels: Various options including hotlines, web portals, and in-person reporting • Anonymous reporting capabilities: Secure systems that protect whistleblower identity • Third-party administration: Independent operators to ensure credibility and objectivity • 24/7 availability: Round-the-clock access to reporting systems across all time zones Professional investigation procedures include: • Independent investigation teams: Qualified investigators without conflicts of interest • Standardized procedures: Consistent investigation processes that meet legal requirements • Confidentiality maintenance: Strict protocols for protecting sensitive information • Documentation standards: Comprehensive record-keeping that supports legal compliance Employee protection measures include: • Retaliation monitoring: Active surveillance for potential adverse actions against whistleblowers • Legal support: Access to legal counsel and representation for protected disclosures • Career protection: Measures to prevent negative impact on advancement and opportunities • Counseling services: Emotional and professional support for employees making disclosures Different industries face unique whistleblower compliance challenges that require specialized knowledge and tailored EOR solutions. Financial institutions must address: • Securities law requirements: SEC whistleblower programs and FINRA reporting obligations • Banking regulations: Anti-money laundering and banking compliance reporting requirements • International coordination: Cross-border financial regulations and reporting obligations • Customer protection: Consumer financial protection and fraud reporting requirements Healthcare organizations need compliance with: • Patient safety reporting: Medical error disclosure and patient safety improvement programs • FDA regulations: Drug safety reporting and clinical trial compliance requirements • Healthcare fraud: Medicare/Medicaid fraud reporting and compliance programs • Research integrity: Scientific misconduct reporting and research compliance requirements Tech companies must manage: • Data privacy violations: GDPR and other privacy law violation reporting requirements • Cybersecurity incidents: Security breach disclosure and incident reporting obligations • Platform responsibility: Content moderation and platform safety reporting requirements • Antitrust compliance: Competition law violation reporting and compliance programs Industrial companies face: • Environmental compliance: EPA and environmental law violation reporting requirements • Workplace safety: OSHA and occupational safety violation reporting obligations • Product safety: Consumer product safety reporting and recall procedures • Supply chain responsibility: Third-party compliance and supply chain monitoring requirements International operations create unique whistleblower compliance challenges that require sophisticated coordination and management across multiple legal systems. Complex issues include: • Competing legal requirements: Different obligations in multiple countries for the same situation • Confidentiality conflicts: Varying confidentiality requirements that may conflict across jurisdictions • Investigation coordination: Managing investigations that span multiple countries and legal systems • Remediation complexity: Addressing violations that affect operations in multiple jurisdictions International challenges include: • Cultural attitudes: Different cultural views on reporting misconduct and challenging authority • Language barriers: Communication challenges that may inhibit effective reporting • Trust issues: Varying levels of trust in institutions and reporting systems across cultures • Local customs: Business practices that may conflict with whistleblower protection requirements Cross-border considerations include: • Data transfer restrictions: Limitations on transferring personal data across international boundaries • Privacy law compliance: GDPR and other privacy laws affecting whistleblower information handling • Confidentiality requirements: Balancing disclosure obligations with privacy protection requirements • Investigation limitations: Restrictions on cross-border investigation activities and information sharing EOR providers address these challenges through: • Unified global programs: Comprehensive policies that work across all jurisdictions • Local adaptation: Customization for local laws and cultural requirements • Coordinated response: Integrated investigation and response capabilities across borders • Expert legal support: Access to international legal expertise for complex cross-border issues EOR providers leverage advanced technology to enhance whistleblower compliance and create more effective reporting and response systems. Modern systems provide: • Multi-channel integration: Unified platforms that support various reporting methods • Mobile accessibility: Smartphone and tablet access for convenient reporting • Secure encryption: Advanced security measures that protect sensitive information • Anonymous communication: Technology that enables ongoing anonymous dialogue Sophisticated analytics include: • Pattern recognition: AI systems that identify trends and patterns in misconduct reporting • Risk assessment: Automated evaluation of disclosure significance and investigation priority • Automated routing: Intelligent systems that direct reports to appropriate investigation teams • Predictive analytics: Technology that identifies potential compliance risks before they materialize Comprehensive management includes: • Workflow automation: Automated processes for investigation management and tracking • Document management: Secure storage and organization of investigation materials • Communication tracking: Complete records of all communications related to investigations • Outcome monitoring: Tracking of investigation results and corrective actions Advanced monitoring includes: • Real-time dashboards: Executive visibility into whistleblower program performance • Regulatory tracking: Automated monitoring of changing legal requirements • Performance metrics: Analytics on program effectiveness and compliance performance • Audit support: Comprehensive documentation and reporting for regulatory examinations Effective whistleblower compliance requires comprehensive education and awareness programs that ensure all employees understand their rights, obligations, and available resources. Comprehensive training includes: • Legal rights awareness: Education about whistleblower protections and employee rights • Reporting procedures: Detailed instruction on how to make protected disclosures • Retaliation recognition: Training on identifying and reporting potential retaliation • Confidentiality understanding: Education about privacy protections and limitations Supervisory education covers: • Legal obligations: Manager responsibilities for preventing retaliation and supporting compliance • Response protocols: Proper procedures for handling employee disclosures and concerns • Investigation cooperation: Guidelines for supporting independent investigations • Culture building: Creating environments that encourage ethical behavior and reporting International considerations include: • Local customization: Training adapted to local cultural norms and communication styles • Language accessibility: Training materials available in local languages • Cultural sensitivity: Understanding of local attitudes toward authority and disclosure • Regional examples: Case studies and examples relevant to local business environments Continuous education includes: • Regular updates: Periodic training on new requirements and program changes • Communication campaigns: Ongoing awareness efforts to maintain program visibility • Success stories: Sharing positive outcomes from effective whistleblower programs • Feedback collection: Regular assessment of training effectiveness and improvement needs EOR services provide comprehensive risk management strategies that minimize exposure while ensuring effective response to whistleblower disclosures. Risk management includes: • Compliance audits: Regular assessment of whistleblower program effectiveness • Gap analysis: Identification of potential compliance weaknesses and improvement opportunities • Benchmark studies: Comparison with industry best practices and regulatory expectations • Scenario planning: Preparation for various types of whistleblower situations and responses Effective response includes: • Immediate assessment: Rapid evaluation of disclosure significance and required actions • Investigation management: Professional coordination of investigation activities • Stakeholder communication: Appropriate notification of relevant parties and authorities • Corrective action: Implementation of necessary remedial measures and process improvements Compliance support includes: • Regulatory notification: Proper reporting to relevant government agencies and authorities • Legal representation: Access to specialized legal counsel for complex cases • Settlement negotiation: Professional support for resolving whistleblower-related disputes • Enforcement cooperation: Coordination with regulatory investigations and enforcement actions Protection strategies include: • Communication planning: Coordinated messaging to protect organizational reputation • Stakeholder engagement: Proactive communication with investors, customers, and partners • Media relations: Professional handling of public attention and media inquiries • Recovery planning: Strategies for rebuilding trust and moving forward after incidents The complexity and high stakes of global whistleblower compliance make EOR services essential for any company operating internationally. Employer of Record providers offer the expertise, technology, and comprehensive support necessary to navigate complex whistleblower protection requirements while building effective programs that support ethical business practices and regulatory compliance across all jurisdictions. TIME BUSINESS NEWS
Observer
21-07-2025
- Business
- Observer
PDO leads Oman's energy transition with breakthrough net zero projects
MUSCAT: Petroleum Development Oman (PDO), the largest producer of oil and gas in the Sultanate of Oman, is spearheading an ambitious and innovative transition toward a Net Zero future by 2050, underscoring its unwavering commitment to sustainability, energy efficiency, and climate responsibility. As published in the July edition of Wealth, a newsletter by the Ministry of Energy and Minerals, PDO's strategic roadmap reflects a clear alignment with Oman Vision 2040 and global goals for decarbonisation, as it pushes ahead with a series of integrated projects that merge energy production with significant emissions reduction. Among its most notable initiatives is a pioneering pilot project in the Dhulaima field, which marks a major milestone in carbon management and enhanced oil recovery (EOR). In a move that reflects a paradigm shift in the application of sustainable production technologies, PDO has successfully deployed carbon dioxide (CO₂) injection into the Upper Shu'aiba reservoir—an area previously considered inaccessible due to the limitations of conventional water injection and low rock permeability. The results were promising, with the CO₂ injection yielding a positive pressure response and no gas breakthrough, demonstrating both technical feasibility and reservoir stability. This pilot not only opens access to substantial untapped oil reserves but also supports emissions reduction through a carbon capture, utilisation and storage (CCUS) framework. What sets the Dhulaima project apart is its rapid and efficient execution. Delivered within just 12 months, the initiative stands as a clear example of PDO's capability to carry out complex engineering tasks with exceptional coordination and precision. The achievement also highlights the dedication and collaboration of multidisciplinary teams who delivered the project on schedule, with an exemplary safety record and zero health or environmental incidents—a hallmark of operational excellence in Oman's energy sector. In parallel with its work in CCUS and EOR, PDO is expanding its investments in renewable energy to reduce its carbon footprint across all operations. The company has set a target of generating 30 per cent of its operational energy requirements from renewable sources by 2026, a key stepping stone in its broader Net Zero strategy. Several large-scale solar projects are currently underway. Among them are Riyah-1 and Riyah-2, which, with a combined capacity of 200 megawatts, represent the first projects of their kind globally to be undertaken by an oil and gas company. Once operational in the last quarter of 2026, they are expected to offset around 740,000 tonnes of carbon dioxide emissions annually. Another major development is the North Concession photovoltaic solar project, also with a capacity of 100 megawatts and expected to be commissioned in the second quarter of 2026. This project alone will contribute to a reduction of more than 220,000 tonnes of emissions each year. Meanwhile, PDO's Amin photovoltaic solar power plant, which became operational in 2020, has already delivered a cumulative reduction of over 1.1 million tonnes of carbon dioxide emissions. The Miraah solar thermal steam generation project also continues to support clean steam supply for enhanced oil recovery, ranking among the world's largest facilities of its kind. Complementing these are smaller-scale but equally impactful initiatives such as the Dhiyaa project in Al Jazir, which supplies solar power to public buildings while promoting renewable energy awareness within local communities. At PDO's Mina Al Fahal headquarters, the company has implemented a car park solar project, now in its third phase, which contributes to the reduction of approximately 1,800 tonnes of carbon dioxide equivalent emissions annually. Equally critical to PDO's environmental strategy is the sustainable management of produced water, which presents both operational challenges and emissions concerns due to its energy-intensive disposal requirements. PDO has adopted a nature-based solution through the Nimr Wetlands project, which uses reed beds to naturally purify water With a treatment capacity of 175,000 cubic metres per day, this project not only avoids the release of 113,000 tonnes of carbon dioxide annually but also supports biodiversity, having created a desert habitat for over 140 species of birds and animals. Additionally, the Rima Water Treatment Plant, launched in 2022, employs innovative biological processes to treat around 40,000 cubic metres of water daily. This initiative has resulted in energy savings equivalent to 10 megawatts, translating into a further reduction of 48,000 tonnes of carbon dioxide emissions each year.
Techday NZ
11-07-2025
- Business
- Techday NZ
Deel unveils AI payroll upgrades, new pay features for NZ staff
Deel has announced the release of a range of AI-powered features across its global payroll and HR platform, aiming to streamline onboarding, payroll, HR information systems, and overall client experience for businesses worldwide, including in New Zealand. The latest update introduces over 500 platform enhancements, each designed to simplify daily operations for global teams. These updates are part of the company's ongoing effort to build what it calls a more unified platform for global workforce management. AI integration and platform upgrades Key features announced include the integration of artificial intelligence throughout the platform, providing support from talent strategy and financial operations to compliance and employee support. With these improvements, Deel stated it can now better anticipate customer needs and reduce the amount of back-and-forth experienced by HR and finance teams. "Deel is evolving into the infrastructure layer for global workforce operations," said Alex Bouaziz, Co-Founder and CEO of Deel. "This latest product drop was all about listening to customers and removing friction, whether you're planning a hire in Brazil, running compensation reviews in Berlin, or onboarding a contractor in Nairobi, Deel understands what you need next. We're building the system of record for modern teams." Payroll and payment flexibility Among the main additions are new features targeting payroll efficiency and pay flexibility. The 'Anytime Pay' feature now allows eligible employees hired via Deel's Employer of Record (EOR) service to access a portion of their earned wages before the regular payday, with these payments automatically tracked and deducted, and no fees involved. This aims to help employees better manage their finances without affecting overall payroll operations. Other finance-related updates include the availability of virtual and physical expense cards in over 130 countries, giving employees more controlled and direct access to company funds. Payroll administrators can now adjust pay cycles directly within the platform, and new visual payslips provide clearer breakdowns of each pay run for employees. AI-driven hiring and workforce planning The update extends to hiring processes, with a Visa Eligibility Tool leveraging Deel AI to quickly assess work permit pathways in more than 50 countries, potentially reducing legal processing times. Additionally, a new Global Hiring Insights feature helps customers identify suitable hiring locations based on criteria such as compliance complexity, costs, and time zone alignment. For organisational planning, the platform now supports scenario modelling to facilitate budget-based growth forecasts and hiring strategies, and a Salary Planning feature that allows for compliant, global compensation reviews managed within the system itself. Support and compliance enhancements Support services are expanded through an AI-powered Knowledge Hub, delivering immediate, country-specific HR and compliance information, as well as over 200 AI Walkthroughs - step-by-step, in-platform guides for handling complex tasks. A new Support Inbox centralises support ticket management for HR, finance, and employees. Shannon Karaka, Country Lead for Australia and New Zealand at Deel, commented on the regional context: "Australian and New Zealand businesses have the global talent pool at their fingertips." "Gone are the days that local businesses were disadvantaged by the tyranny of distance. The companies that can see the benefits of tapping into international talent pools will reap the benefits – not only in being able to attract a whole new cohort of staff, but by ensuring their workplace is at the cutting edge of innovation and efficiency." "This is exactly what we mean by 'the future of work' – but the future is available right now," Mr Karaka said. New Zealand employee attitudes towards payroll Data from a survey of 750 employees across New Zealand conducted in April 2025 sheds light on local workforce preferences relevant to Deel's latest features. More than half (54%) of respondents receiving fortnightly pay expressed a desire for more frequent payments; this proportion rises to 69% among those paid monthly. The survey found that more than 80% of respondents used some form of financial support, such as savings, loans, or pay services, between pay periods in the past year. 70% reported having used 'Earned Wage Access' services - which enable early access to earned wages - highlighting potential demand for Deel's new Anytime Pay functionality. Understanding payslips and pay deductions remains an area for improvement, with 61% of employees seeking more assistance to understand how their pay and deductions are calculated. The need for clarity is most pronounced among 25–35-year-olds, 69% of whom requested more information. While confidence in explaining pay deductions remains high in older demographics, with 98% of those over 66 feeling confident, this figure falls to 71% among those aged 18–24. Deel currently reports serving over 35,000 businesses worldwide, processing more than USD $11 billion in annual payroll, and recently achieving a USD $1 billion annual revenue run rate.
Scoop
08-07-2025
- Business
- Scoop
Deel Supercharges Platform With Built-In Artificial Intelligence, Pay Flexibility, And Global Hiring Tools
9 July 2025, Deel, the leading global payroll and HR platform, has introduced a major wave of AI-powered features in its quarterly product showcase, The Deel Drop: Summer Edition. The update includes more than 500 improvements across onboarding, payroll, HRIS, and client experience, focused on simplifying day-to-day operations for global teams. Deel's all-in-one platform now embeds intelligence at every step, from talent strategy and financial operations to compliance and support. This quarter, the company introduced new capabilities that anticipate customer needs, reduce back-and-forth, and help organizations make better decisions about how and where to scale. At the same time, it continues to reduce operational friction through self-serve payroll features, built-in financial tools, and clearer HR workflows for global teams. Payroll and Finance Flexibility Anytime Pay: Deel now lets eligible EOR employees access a portion of their earned pay before payday, without fees, automatically tracked and deducted with zero impact to payroll operations. Expense Cards:virtual and physical cards available in 130+ countries give EOR employees access to company funds with tight spend controls. Self-Serve Payroll Calendar & Redesigned Payslips: Admins can now adjust pay cycles in-platform and employees get clear, visual breakdowns of every pay run. Smarter Global Hiring Visa Eligibility Tool: Deel AI now helps companies instantly assess work permit paths across 50+ countries, saving weeks of legal back-and-forth. Global Hiring Insights: With just a few inputs, customers get ranked country recommendations based on time zone overlap, cost, and compliance complexity. Workforce Planning Becomes Proactive Scenario Planning: Teams can now model org growth and hiring options based on budget, region, or business objectives. Salary Planning: Run compliant, global review cycles with built-in guardrails, budget control, and manager approvals, no spreadsheets required. AI-Powered Support and Compliance Knowledge Hub: Hiring managers, admins, and employees now have instant access to up-to-date guidance for 150+ countries, embedded right in the platform. Deel AI Walkthroughs: Over 200 in-product walkthroughs now offer dynamic, contextual help for complex tasks. Support Inbox: Customers can now manage support cases across teams, with a unified view for HR, Finance, and employees. "Deel is evolving into the infrastructure layer for global workforce operations," said Alex Bouaziz, Global CEO of Deel. "Deel is evolving into the infrastructure layer for global workforce operations," said Alex Bouaziz, Co-Founder and CEO of Deel. "This latest product drop was all about listening to customers and removing friction, whether you're planning a hire in Brazil, running compensation reviews in Berlin, or onboarding a contractor in Nairobi, Deel understands what you need next. We're building the system of record for modern teams." Shannon Karaka, Country Lead, Australia & New Zealand, Deel, said:'Australian and New Zealand businesses have the global talent pool at their fingertips. 'Gone are the days that local businesses were disadvantaged by the tyranny of distance. The companies that can see the benefits of tapping into international talent pools will reap the benefits – not only in being able to attract a whole new cohort of staff, but by ensuring their workplace is at the cutting edge of innovation and efficiency. 'This is exactly what we mean by 'the future of work' – but the future is available right now,' Mr Karaka said. The Deel Drop: Summer Edition follows The Big Deel launch in April and supports Deel's mission to build the most unified platform for global work. Deel recently announced that it achieved a $1 billion annual revenue run rate in the first quarter of 2025. The global payroll and HR leader now serves over 35,000 businesses worldwide, and processes more than $11 billion in annual payroll. About Deel Deel is the all-in-one payroll and HR platform for global teams. Built for the way the world works today, Deel combines payroll, HRIS, compliance, benefits, performance, and equipment management into one seamless platform. With AI-powered tools and a fully owned payroll infrastructure, Deel supports every worker type in 150+ countries—helping businesses scale smarter, faster, and more compliantly. Discover how Deel makes global work simple at
Mint
30-06-2025
- Business
- Mint
Hiring an offshore team in India? Here's how you can manage the pay outs
India has emerged as one of the key destinations for international hiring, drawing the attention of foreign companies seeking to expand their global reach and optimise operations. The country offers several advantages – a vast and highly skilled talent pool particularly strong in sectors like technology, engineering, and finance, competitive labour costs that present significant operational efficiencies, and a large English-speaking workforce that facilitates seamless communication and integration into multinational teams. Our robust digital infrastructure and adaptability to remote work models are further advantages. But, a major challenge faced by foreign entities is understanding the basics of our labour laws and regulatory landscape. While direct employment of full-time staff without a local legal entity is generally restricted under Indian law, effective and compliant solutions are readily available. Read on to know how you can hire and pay remote workers in India. Foreign companies have several ways to pay their employees in India, each with its own implications. These include: Establishing a local legal entity: This option allows a foreign company to directly employ workers under its own registered entity in India. This option is reserved for larger enterprise businesses looking to hire large, permanent teams in a country. However, setting up a legal entity can be a time-consuming and costly process. It also necessitates managing local payroll, benefits administration, and ensuring ongoing compliance with both national labour laws and those of the state(s) that you operate in. Partnering with a global employment partner: Many foreign businesses opt to work with an Employer of Record (EOR) or a similar global employment provider. An EOR legally employs workers on behalf of the foreign company, eliminating the need for the latter to establish its own entity in India. This solution handles payroll processing, benefits administration, tax filings, and all aspects of legal compliance, offering a streamlined and secure approach to global employment. Engaging workers as independent contractors: In certain scenarios, businesses may pay workers in India as independent contractors to avoid hiring full-time employees. This model is generally suitable for short-term projects or when the individual operates a legitimate self-employment business. It is important to note that Indian laws do not favour misclassifying employees as contractors to avoid providing benefits. Companies must ensure the working relationship genuinely aligns with contractor guidelines to prevent legal disputes and penalties. All payments to employees in India must be made in Indian Rupees (INR). While contractors may receive payments in other currencies if they possess foreign currency accounts, paying in local currency is generally recommended to avoid complications. India has a dual income tax regime. A newer system offers reduced tax rates but removes certain exemptions, while the older regime allows employees to retain exemptions in their salaries. Employees can choose the option that best suits their financial situation. The tax brackets for the old regime (with exemptions) are: 0% for income below INR 2,50,000 5% for income from INR 2,50,000 to 5,00,000 20% for income from INR 5,00,000 to 7,50,000 20% for income from INR 7,50,000 to 10,00,000 30% for income from INR 10,00,000 to 12,50,000 30% for income from INR 12,50,000 to 15,00,000 30% for income above INR 15,00,000 The new tax brackets (with no exemptions) are: 0% for income below INR 2,50,000 5% for income from INR 2,50,000 to 5,00,000 10% for income from INR 5,00,000 to 7,50,000 15% for income from INR 7,50,000 to 10,00,000 20% for income from INR 10,00,000 to 12,50,000 25% for income from INR 12,50,000 to 15,00,000 30% for income above INR 15,00,000 Certain components of an employee's compensation package are subject to different tax treatments: Fully Taxable: Basic salary (including commissions for sales people), bonuses, profit-sharing earnings, personal expense reimbursements and benefits converted to pay such as unused leave time. Partially Taxable: Allowances such as transport/conveyance (exempt up to INR 19,200 per year), medical allowance paid to employees who need to take time for extended illness or to care for sick family members (exempt up to INR 15,000), and house rent allowance provided to employees to assist with living expenses (partially exempt for renters, with limitations varying by city and income). Tax-Exempt: A few allowances are completely tax-exempt, but these are generally limited to specific government, judicial, or international organisation employees. Per Diem: Reasonable per diem allowances are typically not considered taxable income, allowing employees to keep any unspent portion tax-free. However, companies must avoid providing unusually large per diem amounts as a means to circumvent standard payroll procedures. It is also important to distinguish between allowances (predetermined amounts for specific uses) and reimbursements (money returned for expenses initially covered by the employee), as their tax treatment can differ. Employers in India are generally required to make at least three key payroll deductions: Employees' Provident Fund (EPF): This is a government-run retirement investment scheme. Companies with more than 20 employees typically require eligible employees (earning less than INR 15,000 per month in salary) to contribute 12% of their eligible salary to EPF. Employers match this 12% contribution. Employees earning more than INR 15,000 may participate voluntarily. The eligible salary for EPF calculation includes basic income, dearness allowance, and retaining allowance. Employees' Pension Scheme (EPS): Employees do not directly contribute to EPS. Instead, 8.33% of the employer's 12% contribution (capped at INR 1,250 per month for workers earning up to INR 15,000) goes towards EPS. Employees' Deposit Linked Insurance Scheme (EDLI): This scheme provides life insurance for private sector employees. Employers are required to contribute 0.5% of the employee's basic salary to EDLI. Employees are not required to contribute. Employers may opt for an alternative life insurance plan, provided its benefits are equivalent to or better than EDLI. Minimum wage in India varies significantly by state and industry. While a national minimum wage of INR 176 per day exists for certain sectors, state-specific rates often apply. Salaries for remote workers are generally competitive with global standards. Overtime pay regulations also vary by state and industry. Employees working beyond their stipulated contract hours may be entitled to overtime compensation, typically at a higher rate. The specific rates and eligibility depend on factors such as the type of work, usual working hours, and the employee's location. In certain industries, employers are required to pay employees an annual bonus, often referred to as 13th-month pay. These payments are due within eight months of the financial year's end and are not universally observed across all industries. Businesses can pay contractors directly in India, primarily in INR, unless the contractor maintains a foreign currency account. While the general principles for managing contractors apply, India has regulations on contractor relationships to prevent misclassification. If a long-term engagement is anticipated, it is generally safer to classify the individual as a full-time employee if the role warrants it, to avoid potential legal issues. When maintaining a contractor relationship, it is crucial to ensure the contractor operates independently, without direct supervision over their work methods or provision of company equipment, to clearly distinguish the arrangement from an employment relationship. Hiring remote employees in India offers substantial advantages for businesses. It allows access to a vast and highly skilled talent pool, enabling companies to recruit top professionals regardless of their physical location. This flexibility can lead to optimised operational costs, increased diversity within teams, and enhanced business resilience. Remote's global employment and global contractor solutions make it easy. With Remote's simple solutions, you can hire, onboard, and pay your remote workers in India easily and quickly, whether they're employees, contractors, or a mix of the two. Contact Remote today at sales@ to learn more about our global employment and global contractor payment solutions for India. Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Mint.
