PEO Services in India: EOR Providers and Payroll Compliance (2026)

Deel operates as an EOR in India through their local entity, handling Provident Fund (PF) registration and monthly contributions (12% employer + 12% employee), ESI registration and compliance for employees earning under the threshold (currently INR 21,000/month), professional tax filings (which vary by state), TDS (tax deducted at source) on salary, and Shops and Establishments registration in each state where employees are located.

Deel's India EOR pricing starts at $599/employee/month, which is positioned toward mid-to-senior hires where the per-employee cost is proportionally reasonable against Indian salary levels. For junior to mid-level roles where salaries are INR 5-15 lakh/year, the EOR cost can represent 30-50% of the employee's salary — making entity establishment more cost-effective at 15-20 employees.

Deel's India operations also handle the complexity of variable CTC structures common in Indian employment — where the salary is split into basic pay, HRA (House Rent Allowance), special allowance, LTA (Leave Travel Allowance), and other components for tax optimization. Their benefits package includes group health insurance covering the employee and dependents, which is increasingly expected by Indian professionals especially in the technology sector where talent competition with Infosys, TCS, and domestic startups is intense.

Rippling's India EOR service handles employment compliance within their global platform. For US companies with Indian engineering or operations teams, Rippling provides a single dashboard for US and Indian employees — one place for onboarding, payroll, benefits, and time tracking. Rippling handles PF, ESI, professional tax, and TDS for Indian employees while running US payroll for domestic staff.

Rippling's India benefits package includes health insurance (required for technology companies in many cities), paid leave tracking per Shops and Establishments rules, and gratuity accrual. Their automated onboarding creates Indian employment contracts, handles PF registration, and generates offer letters that comply with local requirements.

Rippling supports India's complex variable pay structures including performance bonuses, retention bonuses, and ESOPs that are common in Indian technology companies. The platform handles the distinction between CTC (Cost to Company) and take-home salary — a uniquely Indian compensation framework where CTC includes employer PF contribution, gratuity provision, and insurance premiums. For companies managing distributed teams across Bangalore, Hyderabad, and other tech hubs, Rippling's location-based policy engine applies the correct state-level professional tax rates and Shops and Establishments rules.

TriNet HR Platform (formerly Zenefits) provides basic HR record-keeping for Indian team members — employee directory, onboarding checklists, document storage, and PTO tracking. At $8/user/month, it serves as a low-cost unified directory for companies that manage Indian payroll through a separate local provider or EOR but want all employees visible in one system.

The platform does not handle Indian payroll, PF, ESI, professional tax, or any Indian statutory compliance. It is purely an HR administration layer. For companies with 5-20 Indian employees managed through an EOR, TriNet HR Platform adds a useful record-keeping layer without duplicating compliance work.

TriNet HR Platform integrates with popular Indian productivity tools and can store digitized copies of Indian statutory documents including PAN card, Aadhaar (where legally permissible for employment purposes), and Form 16 (annual tax certificate). The platform's org chart and reporting features provide visibility into the Indian team structure for US-based leadership, which is especially useful for companies running India development centers alongside US product teams.

Gusto supports international contractor payments including India. For US companies paying Indian freelancers, consultants, or agencies, Gusto handles cross-border payments, maintains contractor records, and provides payment documentation. Payments can be made in USD or INR depending on the arrangement.

Critical warning: Indian tax authorities (CBDT) and labor officials actively scrutinize contractor relationships with foreign companies. If your Indian contractor works exclusively for you, on your equipment, during fixed hours, they may be classified as an employee under Indian law — triggering PF, ESI, and gratuity obligations plus penalties. Use EOR for roles that function as employment.

Companies using Gusto for Indian contractor payments should be aware that the TDS (Tax Deducted at Source) obligations for payments to Indian residents differ from payments to non-residents. Under Section 195 of the Income Tax Act, payments to non-resident contractors require TDS at the applicable treaty rate, while Indian-resident contractors handle their own advance tax payments. The distinction matters for compliance, and companies paying Indian contractors above INR 30,000 per transaction should consult with an Indian CA (Chartered Accountant) on withholding obligations.

ScalePEO can connect companies with India-specific EOR providers and HR outsourcing firms through their broker model. While their primary expertise is US PEO, the consultation is useful for companies evaluating multiple India hiring options — EOR, entity establishment, or contractor arrangements — and needing guidance on which model fits their headcount and budget.

The service is free to employers and can save time during the initial research phase. For companies already committed to using an EOR in India, going directly to Deel or Rippling is faster.

ScalePEO's India referral network includes GCC (Global Capability Center) setup consultants, which is relevant for companies planning to scale beyond the 15-20 employee EOR threshold. The GCC model — where a multinational establishes an Indian subsidiary to house a dedicated team — has become the dominant structure for US technology companies with significant Indian headcount. ScalePEO can facilitate introductions to firms that handle GCC registration, STPI (Software Technology Parks of India) compliance, and ongoing corporate secretarial services.