Work conditions in India

The Active Population in Figures

Working Conditions

Legal Weekly Duration

Maximum 48 hours (9 hours a day).

Retirement Age

It varies between 58 and 65 years depending on the state and the employee's status.

Working Contracts

1. Permanent (more than 90%)
2. Temporary
3. Fixed-term

Labour Laws

Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

India does not have a single nationwide statutory minimum wage applicable to all workers; instead minimum wages are determined by central and state governments by industry and skill level, with a commonly referenced baseline of INR 178 per day as a statutory floor.

Average Wage

As of 2026, the average annual salary in India is estimated at approximately ₹385,000 to ₹400,000, equivalent to about $4,600-$4,800 USD per year.

Social Contributions

Social Security Contributions Paid By Employers: The Employees' Provident Fund (EPF) Scheme is funded by the employer at 3.67% of monthly salaries (plus 0.5% of monthly salaries for administrative costs). 8.33% of the salary is compulsorily contributed to the pension scheme. If the monthly salary of employees exceeds INR 15,000, this contribution is allocated to the pension fund. Finally, the employer must contribute to Employer Liability with an average of 4% of the monthly payroll.
Social Security Contributions Paid By Employees: The Employees' Provident Fund (EPF) Scheme is 12% contributed by the employee, the Employee Pension Scheme (EPS) is not contributed to by the employee. 

Social Partners

Employer Associations

FISME - Federation of Indian Micro and Small & Medium Enterprises
IIA - Indian Industries Association

Social Dialogue and Involvement of Social Partners

With some exceptions, India has company unions rather than trade unions. These are often affiliated with national labor organizations. Political parties promote various trade unions. The bargaining power of the unions is declining as the government pushes forward its reform agenda.

Labour Unions

Unionisation Rate

Although there are more than 20 million unionized workers, unions represent less than 25% of the workers in the organized sector (primarily in state-owned organizations), and less than 5% percent of the total work force.

Labour Regulation Bodies

Labor Bureau