A company with 70% in allowances has the extra 20% treated as wages, which raises the PF and gratuity base. Fixing the structure before contracts are signed costs less.
BY SERVICE · Hiring & Contracts
Hiring, appointment letters & fixed-term employment
Every employee must now get a written appointment letter in the prescribed form, and fixed-term employment is defined by law.
Applies to: every employerWhat you must do
Required
Official
Wages, grade, working conditions and social security coverage in the prescribed form
Source: Shiftee · 2026-10-05 ↗Required
Official
Hours, wages and allowances can't be worse than permanent staff doing the same work; statutory benefits apply pro rata
Source: Shiftee · 2026-10-05 ↗Conditional
Official
Pro-rata gratuity after working 1 year or more on contract. 11-month contracts don't qualify
Source: King Stubb & Kasiva · 2026 ↗Required
Official
No single national rate; cannot be below the central floor wage
Source: Shiftee · 2026-10-05 ↗Conditional
Official
If you used 50+ in the past 12 months. Use in core activities may be restricted
Source: Bae, Kim & Lee (BKL) · 2026-06-04 ↗Conditional
Official
Platform operators pay 1–2% of turnover (capped at 5% of payouts) into a social security fund and report to a designated portal
Source: Shiftee · 2026-10-05 ↗Recommended
Post-employment non-competes may have limited force under Indian contract law, so the wording matters
Source: Adullam Consulting · 2026-10-20 checked ↗Steps & deadlines
- D-14Design roles and pay structure (50% rule applied)Adullam · Source: Shiftee · 2026-10-05 ↗
- D-7Job posting and interview supportAdullam · Source: Adullam Consulting · 2026-10-20 checked ↗
- D-dayIssue and sign the appointment letterClient · Source: Shiftee · 2026-10-05 ↗
- +15 daysRegister for PF and ESIC once over the headcount thresholdEPFO·ESIC · Source: CalcGuru · 2026-08 ↗
- Before the 7th of next monthFirst salary paymentClient · Source: Shiftee · 2026-10-05 ↗
Documents to prepare
- Job description
- Draft pay structure (CTC)
- Candidate ID and education documents
- Company PAN, TAN and GSTIN
Time & fees Example
- Duration
- Contract templates 1–2 weeks (example)
- Fees
- Template set / quote per hire
- Deliverables
- Appointment letter, fixed-term contract and NDA (English, with Korean summary)
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