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A practical guide for foreign companies hiring in Bengaluru without an Indian entity: which Karnataka laws apply in 2026, what professional tax, the Labour Welfare Fund and state holidays mean for payroll, what three common tech roles cost all-in, and how an EOR, a subsidiary and a GCC compare.
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An employer of record (EOR) in Bangalore employs your staff on its own Indian payroll, so a foreign company can hire in Bengaluru without an entity. Budget for Karnataka professional tax of ₹2,500 a year per employee (deducted from pay), a ₹100 employer Labour Welfare Fund share and EOR fees from $99 a month (Remunance and other India specialists) to $599 (Deel, Remote).
Bengaluru is India’s deepest tech hiring market. Zinnov counts 880+ global capability centres (GCCs) in the city out of 1,760+ nationally, and Peorient’s salary research by city puts average IT/tech CTC at about ₹14 LPA, roughly 25% above the national average. That depth is why companies hire here, and why they pay more and wait longer for people.
This guide covers the Karnataka rules that change your payroll in 2026, including the September 2026 amendment to the Shops and Commercial Establishments Act and the January 2026 Labour Welfare Fund change. It then prices three Bangalore tech roles, shows when an entity or GCC beats an EOR, and compares the providers that serve the city. It is general information, not legal or tax advice: specifics depend on your facts, so confirm the position with your EOR or an adviser before you act.
Disclosure: Peorient is affiliated with Remunance and Rivermate and may earn a referral fee if you choose them. Remunance is our featured India partner and is listed first in our recommendations. Our first recommendation for Bangalore hiring is Remunance, a Pune-based India specialist founded in 2004. Its calculator puts all three example roles in its $149 band, so a ₹17.7 lakh software engineer costs about $21,526 a year all-in, against $26,926 through a $599 global platform.
An EOR employs your Bangalore hire on its own Indian payroll, so you need no entity; India specialists publish fees from $99 a month and global platforms from $599, and the EOR handles Karnataka professional tax, Labour Welfare Fund and Shops Act duties.
Peorient's first pick for Bangalore hiring
Remunance is a Pune-based India specialist whose calculator prices all three Bangalore example roles in this guide at $149 a month, $450 below the $599 global-platform starting fee.
From $99 per employee a month up to ₹11.4 lakh a year; $149 between ₹11.4 and ₹33.2 lakh; $199 above that, the highest tier
Through Peorient: 10% off Remunance’s EOR fee for your first 12 months.
Remunance is Peorient’s affiliated India partner; we may earn a referral fee.
An EOR becomes the legal employer of your Bangalore hire. It issues the Indian employment contract, runs payroll, deducts income tax and Karnataka professional tax, pays PF and other contributions, and handles exits. You direct the day-to-day work and pay the EOR a monthly fee plus the employment cost, with no Indian company of your own.
The model suits a first team, a market test or a bridge to an entity. Our guide to hiring in India without a legal entity covers the general mechanics; this post covers what is specific to Karnataka.
An EOR does not remove permanent establishment (PE) risk, set competitive salaries for you, or make a dedicated Bangalore office compliant by default. If your Bengaluru staff habitually negotiate or conclude contracts for the parent, or you control a fixed office, India may tax the profits attributable to that presence, whoever employs the team.
Our guide to permanent establishment risk in India explains the triggers and cites a 35% ordinary rate for foreign companies, plus surcharge and cess, on attributable profits. Read it before you give a Bangalore hire a sales, country manager or deal-approval role.
Bangalore employers follow India’s four Labour Codes, in force since 21 November 2025, plus Karnataka laws that still apply: the Shops and Commercial Establishments Act 1961, the professional tax Act, the Labour Welfare Fund Act, the National and Festival Holidays Act, Kannada signage rules and Karnataka’s minimum wage notifications.
Hand this checklist to your EOR and ask where each line shows up on payslips, filings or invoices.
| Rule | Threshold or scope | Employer action | Source |
|---|---|---|---|
| Shops and Commercial Establishments registration (Karnataka Act 1961, amended by Act 38 of 2026) | Each establishment (office) in Karnataka; exempt if it has 10+ workers and is registered under the OSH Code | Register within 30 days of starting; registration now lasts until closure, no renewal | Karnataka Act 38 of 2026, gazette 4 Sep 2026 |
| Working hours (Shops Act) | 9 hours a day, 48 a week; 10 hours a day including overtime; 50 overtime hours per 3 months | Set shift and overtime policy; pay overtime at twice the ordinary rate | Karnataka Shops Act; India Briefing, June 2026 |
| Original documents and service certificates | All employers covered by the Shops Act | Do not keep employees' original certificates; issue a service certificate within 7 days of a request | Sections 6-B and 6-C, Act 38 of 2026 |
| Professional tax | Monthly salary of ₹25,000 or more | Deduct ₹200 a month and ₹300 in February (₹2,500 a year); hold a PT registration certificate; pay by the 20th of the next month | Karnataka PT schedule; Amendment Act 2025 |
| Labour Welfare Fund | Establishments with 10 or more persons (from 7 Jan 2026; previously more than 50) | Deduct ₹50 from December wages, add ₹100 employer share, remit to the Board by 15 January | LA Bill 68 of 2025; LWF (Amendment) Act 2024 |
| Minimum wages (shops and commercial establishments, Zone 1 Bengaluru) | ₹25,714.07 (unskilled) to ₹34,225.42 (highly skilled) a month | Check non-tech roles (admin, support, facilities); track the annual dearness allowance revision | Karnataka notification, May 2026 (contested by employer bodies) |
| National and festival holidays (Act of 1963) | Industrial establishments, including shops and commercial establishments | Give 10 paid holidays: 26 Jan, 1 May, 15 Aug, 2 Oct, 1 Nov plus 5 festival holidays from the state list | Karnataka Industrial Establishments (National and Festival Holidays) Act 1963, s.3 as amended |
| Kannada name boards | Commercial establishments that display a name board | 60% of the board in Kannada, in the upper half; enforcement restrained by a High Court interim order | Kannada Language Comprehensive Development (Amendment) Act 2024 |
| IT/ITES standing orders exemption | IT, ITES, BPO, startup, animation and gaming establishments | Exempt from the Standing Orders Act to 10 June 2029 if conditions are met (POSH committee, grievance committee, reporting dismissals) | Karnataka order of 10 June 2024 |
| EPF and ESIC (central, Code on Social Security) | EPF wage ceiling ₹25,000 a month from 17 Sep 2026; ESIC at gross pay up to ₹21,000 | EPF employer 12% plus 0.5% EDLI and 0.5% admin; ESIC employer 3.25% where covered | PIB, 16 Sep 2026 |
Karnataka Act No. 38 of 2026, in force since 4 September 2026, makes registration valid until an establishment closes and gives an Inspector 7 days, not 30, to state reasons for refusal before registration is deemed. Establishments with 10 or more workers registered under the OSH Code need no separate Shops Act registration.
It also bars employers from keeping an employee’s original educational or experience certificates and requires a service certificate within 7 days of a request. Penalties rose sharply, with the fine for obstructing an Inspector up from ₹500 to ₹10,000, per India Briefing’s summary of the 2026 amendment.
For remote staff on an EOR’s payroll, ask the EOR in writing how it handles Shops Act registration. A dedicated office you rent must be registered within 30 days of opening, and it is a PE question first. Our Shops and Establishments registration guide by state compares Karnataka with other states.
Yes, but it is narrower than many buyers assume. Karnataka’s exemption for IT/ITES establishments, extended on 10 June 2024 until 10 June 2029, is from the Industrial Employment (Standing Orders) Act 1946, not from Shops Act registration. It is conditional on a POSH internal committee, a grievance committee and reporting dismissals to labour officials.
The Industrial Relations Code replaced the Standing Orders Act on 21 November 2025, and its standing orders chapter applies at 300 or more workers, so the exemption matters mainly to large GCCs. AZB & Partners noted in 2024 that the Industrial Relations Code would apply to all employers once implemented, and it now is. How the 2024 exemption carries over is a point to confirm with counsel.
The Karnataka Shops Act limit is still 9 hours a day and 48 hours a week, with no more than 10 hours including overtime and 50 overtime hours in any three months, paid at twice the ordinary rate. The 10-hour day is not law. It was a June 2025 proposal that was reported dropped in July 2025.
That proposal would have allowed 10 hours a day, 12 with overtime, and 144 overtime hours a quarter. South First reported on 29 July 2025 that the government had scrapped it after union protests, citing the Karnataka State IT/ITeS Employees Union and Chief Minister’s Office sources. We found no formal withdrawal notification, and the September 2026 amendment did not change hours.
Karnataka’s draft OSH Code rules of 23 January 2026 set overtime thresholds of 9 hours a day on a six-day week, 10 on a five-day week and 11.5 on a four-day week, but they were still drafts in September 2026. Do not build a four-day roster on them yet.
The four Codes have applied nationally since 21 November 2025, with central rules final from 8 May 2026. Karnataka published its own rules under all four Codes in draft on 23 January 2026, and final versions were still awaited in September 2026. State Acts such as the Shops Act, professional tax and LWF run alongside the Codes.
The Ministry of Labour’s release confirms the commencement date, and our India labour laws guide tracks national changes such as appointment letters for every employee. The September 2026 Shops Act amendment already points to the Code on Wages and Code on Social Security instead of the old Acts.
For shops and commercial establishments in Zone 1 (Bengaluru), the May 2026 revision sets monthly minimums of ₹25,714.07 for unskilled, ₹28,285.47 for semi-skilled, ₹31,114.02 for skilled and ₹34,225.42 for highly skilled work. Tech salaries clear these easily; office, support and facilities roles may not.
The figures come from India Briefing’s summary of the May 2026 notification. Employer bodies are contesting it because it was issued under the Minimum Wages Act 1948, which the Code on Wages repealed, so check the Karnataka Labour Department’s current notification before fixing pay for junior roles.
Two knock-on effects matter for payroll in Bangalore. Every Zone 1 minimum is above the ₹25,000 professional tax threshold, so in practice every full-time employee pays PT. Every one is also above the ₹21,000 ESIC ceiling, so ESIC rarely applies to Bangalore office staff.
Karnataka’s Industrial Establishments (National and Festival Holidays) Act 1963 requires 10 paid holidays: five national holidays (26 January, 1 May, 15 August, 2 October and 1 November, Kannada Rajyotsava) and five festival holidays the employer picks from the state list. Kannada Rajyotsava falls on a Sunday in 2026.
Ask your EOR for its Karnataka holiday calendar and compare it with your global one. Our 2026 public holidays guide lists national and restricted dates.
Only if you put up a name board. The Kannada Language Comprehensive Development (Amendment) Act 2024 requires 60% of a commercial establishment’s name board to be in Kannada, in the upper half. The Karnataka High Court restrained the state from sealing non-compliant premises in March 2024 and extended that interim order in October 2024.
We found no final ruling, so treat 60% Kannada as the working rule for any branded office or coworking suite sign. Remote EOR hires are not affected.
No. In July 2024 Karnataka floated a bill reserving 50% of management and 70% of non-management roles for local candidates, but Commerce Minister M B Patil said it was withheld until further consultation. It is not law, and it does not affect who you can hire through an EOR today.
Peorient is an EOR and PEO advisory focused on hiring in India. Tell us the roles, salaries and start date, and we compare EORs on state compliance, all-in cost and support. Free for companies.
On top of salary, a Bangalore EOR hire carries employer PF of up to ₹3,250 a month, a gratuity provision, insurance, a ₹100-a-year LWF share and the EOR fee. Professional tax of ₹2,500 a year comes out of the employee’s pay, not your budget. ESIC at 3.25% applies only at gross pay of ₹21,000 a month or less.
Karnataka charges ₹200 a month on monthly salaries of ₹25,000 and above, and ₹300 in February, a total of ₹2,500 a year under the 2025 amendment effective from 1 April 2025. Salaries below ₹25,000 pay nothing. The employer deducts it, holds a PT registration certificate and pays by the 20th of the following month.
The Karnataka PT schedule on the state portal sets the ₹25,000 threshold and the ₹200 rate. The ₹300 February figure comes from the Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act 2025, which lifted the annual total from ₹2,400 to ₹2,500. Our professional tax guide compares Karnataka’s slab with other states.
From 7 January 2026 the Karnataka Labour Welfare Fund Act covers establishments with 10 or more persons, down from more than 50. The annual contribution is ₹50 from the employee and ₹100 from the employer, with the state adding ₹50, rates set by the 2024 amendment. Contributions can now be paid online.
Deduct the employee share from December wages and remit both shares to the Karnataka Labour Welfare Board by 15 January, so the next deadline is 15 January 2027 for calendar year 2026. The threshold change is in LA Bill 68 of 2025. Most EORs employ well over 10 people in Karnataka, so expect the ₹100 employer share on your invoice.
Employer PF is 12% of PF wages plus 0.5% EDLI and 0.5% admin, and the PF wage ceiling rose from ₹15,000 to ₹25,000 a month from 17 September 2026. That caps the mandatory employer PF cost at ₹3,250 a month in Peorient’s model. ESIC adds 3.25% employer and 0.75% employee only at gross pay of ₹21,000 or less.
The ceiling change is confirmed in the PIB release of 16 September 2026. Our EPF and ESIC employer contribution guide breaks down each component.
A mid-level Bangalore tech hire costs roughly $21,500 to $37,400 a year all-in through Remunance at its $149-a-month tier, and about $5,400 a year more through a $599 global platform. That assumes Peorient’s Bengaluru midpoints of ₹17.7 lakh (software engineer), ₹20.7 lakh (DevOps) and ₹32.3 lakh (AI/ML), all in Remunance’s ₹11.38 to ₹33.18 lakh band.
| Line item | Software engineer | DevOps engineer | AI/ML engineer |
|---|---|---|---|
| Annual gross salary (Bengaluru mid-level midpoint) | ₹17.7 lakh | ₹20.7 lakh | ₹32.3 lakh |
| Monthly gross salary | ₹1,47,417 | ₹1,72,833 | ₹2,69,417 |
| Employer PF, EDLI and admin (13% of ₹25,000 cap) | ₹3,250 | ₹3,250 | ₹3,250 |
| Gratuity provision | ₹4,252 | ₹4,986 | ₹7,772 |
| Group health insurance (assumption) | ₹1,000 | ₹1,000 | ₹1,000 |
| Karnataka LWF employer share (₹100 a year) | ₹8 | ₹8 | ₹8 |
| ESIC and statutory bonus | Not applicable | Not applicable | Not applicable |
| Remunance ($149 tier) EOR fee, for gross pay of ₹11.38 to ₹33.18 lakh a year | ₹14,125 | ₹14,125 | ₹14,125 |
| Total employer cost per month | ₹1,70,053 | ₹1,96,202 | ₹2,95,572 |
| Total per year, Remunance ($149 tier) | ₹20.41 lakh ($21,526) | ₹23.54 lakh ($24,836) | ₹35.47 lakh ($37,414) |
| Total per year, $599 global platform | $26,926 | $30,236 | $42,814 |
| Remunance saving vs a $599 platform | $5,400 a year | $5,400 a year | $5,400 a year |
| Karnataka PT (deducted from employee, not a cost to you) | ₹2,500 a year | ₹2,500 a year | ₹2,500 a year |
The salary midpoints apply a 22% Bengaluru premium to the national mid-level bands on our role pages for a software engineer, a DevOps engineer and an AI/ML engineer. Statutory wages are taken as 60% of gross, gratuity as statutory wages times 15/26 per year of service, and insurance at ₹1,000 a month. The totals exclude GST, recruitment, equipment, variable pay, ESOPs and exit costs.
Professional tax sits in the table as a memo line because the employee pays it. To change the salary, fee or city, run the numbers in the India hiring cost calculator.
Peorient’s city research puts average IT/tech CTC at about ₹14 LPA in Bengaluru, against ₹12.8 LPA in Hyderabad and ₹11.5 LPA in Pune. A Bangalore tech hire therefore typically costs about 9% more in salary than the same profile in Hyderabad and about 22% more than in Pune. Our Hyderabad and Pune EOR guides show the all-in cost in each city.
| City | Average IT/tech CTC | Premium vs national average | Best known for |
|---|---|---|---|
| Bengaluru | About ₹14 LPA | +25% | Product companies, startups, GCCs |
| Hyderabad | About ₹12.8 LPA | +18% | Big-tech campuses, pharma |
| Mumbai | About ₹12.2 LPA | High | BFSI, fintech, media |
| Pune | About ₹11.5 LPA | Moderate | IT, auto, GCCs |
| Chennai | About ₹10.8 LPA | Moderate | IT services, auto, health tech |
Across all salaried workers, Bengaluru’s average of ₹29,500 a month is also the highest in our research, and senior staff at top product firms reach ₹40 LPA and beyond once equity is counted.
Bangalore packs GCCs, product companies and startups into a few corridors, so strong engineers usually hold competing offers. Zinnov counts 880+ GCCs in Bengaluru, about half of India’s 1,760+, and puts Bengaluru’s voluntary ER&D attrition at 14.3%, the highest of any Tier-I city.
According to Zinnov’s review of India’s GCC market in 2025, India’s GCCs employ over 1.9 million professionals and Bengaluru took one in three new GCCs added in FY24. Karnataka wants more: its GCC policy, launched in draft in September 2024, targets 500 new GCCs, 3.5 lakh jobs and $50 billion of output by 2029, with a Beyond Bengaluru incentive package for other cities.
Zinnov’s June 2026 attrition study puts overall GCC attrition at 16% in 2026 and 18% to 25% in AI and cloud roles, where average tenure is down to 18 to 24 months. Chennai’s ER&D attrition is 8.2%.
Bangalore’s tech offices cluster on four corridors: the Outer Ring Road (ORR), Whitefield, Electronic City and Nagavara in the north, home to Manyata Tech Park. ICRA estimates ORR South-East, Whitefield and Nagavara together hold about 37% of the city’s office supply, with occupancy at 90.8% in September 2025.
The ORR Companies Association says the corridor supports about 1.3 million employees, and a MoveInSync study reported in April 2025 found Bengaluru’s GCC staff travel an average of 50 minutes and 15 km each way. JLL recorded a record 24.1 million sq ft of gross office leasing in 2025.
The practical point: state the work location and hybrid policy in the offer, because a candidate in Electronic City weighs a Whitefield office very differently from a remote role.
Plan for 30 to 90 days. Analytics India Magazine found almost one in three Indian IT roles carries a 90-day notice period, and TCS has used three months since 2016. Product companies and GCCs often run 30 to 60 days, so the candidate’s notice, not EOR onboarding, usually sets your Bangalore start date.
Many offers include a buyout so the candidate can leave early. A buyout is contractual, not a statutory right, and the formula depends on the old employer’s contract. Our notice period buyout guide has a worked example and the tax points.
Use an EOR for a first team or a market test, a subsidiary once headcount and permanence justify the fixed cost, and a GCC when Bangalore becomes a long-term operating centre. Peorient’s illustrative model puts EOR-versus-subsidiary break-even near 9 employees at a ₹20,000 monthly EOR fee over two years.
| Factor | EOR | Subsidiary | GCC |
|---|---|---|---|
| Legal set-up | None in India; the EOR is the employer | Indian private company you own | Operating model, usually run through an owned entity |
| Time to first hire | Days to 2 weeks of onboarding, plus the candidate's notice | Incorporation, bank account and payroll registrations first | A few months with specialist support |
| Fixed cost (Peorient model) | None beyond the monthly fee | About ₹4.5 lakh to set up and ₹18 lakh a year in fixed overhead | Entity costs plus office, leadership and support functions |
| Where it usually wins | Up to roughly 5 to 19 hires depending on the fee; market tests; bridging | Above break-even and when staff must sign contracts in India | Long-term engineering, AI or shared-services centre |
| PE exposure | Still possible; depends on what staff do | Activities sit in your own Indian entity | As for a subsidiary |
| Bangalore fit | Quick access to a deep, mobile talent pool | Needed for a branded office on the ORR or in Whitefield | Competes directly with 880+ GCCs for talent |
The break-even moves with the fee: about 19 employees at ₹10,000 a month and about 5 at ₹40,000, according to our EOR vs subsidiary decision guide. Remunance’s $149 tier (₹14,125 a month) sits between the ₹10,000 and ₹20,000 points, so its break-even falls between about 9 and 19 employees. The same model notes that a group can use an EOR to recruit an early team while its entity is being prepared.
An EOR stops making sense when Bangalore staff need to negotiate or sign contracts in India, when you want a branded office, or when headcount passes the break-even for your fee. At that point an entity is usually cheaper and cleaner, and it is the normal base for a GCC.
A GCC is an operating model rather than a legal form, as our guide to global capability centres explains. In Bangalore it competes with hundreds of established centres for senior engineers, so budget for the top of the salary bands.
Start with Remunance, Peorient’s first recommendation: a Pune-based India specialist whose calculator charges $99, $149 or $199 a month by salary band. Then compare Wisemonk (India company in Bengaluru North) and Asanify (Kolkata), both from $99, and global platforms Deel and Remote from $599. Each can employ staff in Bangalore, so the choice turns on price, coverage and service.
Disclosure: Peorient is affiliated with Remunance and Rivermate and may earn a referral fee if you choose them. Remunance is our featured India partner and is listed first in our recommendations.
| Provider | Type | Where it is run from | Published EOR fee | Notes for Bangalore teams | Source |
|---|---|---|---|---|---|
| Remunance (affiliated) | India specialist | Pune head office (Gokhale Business Bay, Kothrud) | From $99 ($99, $149 or $199 by salary band) | India-focused since 2004; ISO 27001; $149 tier covers this guide's three example roles; onboarding 1 to 2 weeks per our review; ask where the payroll team sits | Remunance EOR cost calculator, 26 Oct 2026 |
| Wisemonk | India specialist | India operating company in Karnataka (Bengaluru); US parent Storyy Inc. | From $99; $99 to $399 by scope | India only; quotes 2 business days to onboard | Wisemonk pricing and Bangalore pages, 26 Oct 2026 |
| Asanify | India specialist | Kolkata address on its website (Asanify Technologies Pvt Ltd) | From $99 | No setup fee; refundable deposit of one month's total cost per employee | Asanify EOR and pricing pages, 26 Oct 2026 |
| Deel | Global platform | Multi-country | From $599 | One platform across countries; our review notes the India list price is often negotiable at scale | Deel pricing page and Peorient Deel review, 26 Oct 2026 |
| Remote | Global platform | Multi-country; own Indian subsidiary | Starting at $599 | Owned-entity model; check the India quote and billing currency | Remote pricing page, 26 Oct 2026 |
Not every India specialist sold to Bangalore buyers is based here. Remunance’s head office is in Pune, at Gokhale Business Bay in Kothrud. Wisemonk’s India operating company, Storypeach Technologies, is in Karnataka (listed in Bengaluru North), though its website shows only its US parent’s Delaware address. Asanify’s website lists a Kolkata address. Any of them can employ in Bangalore; ask where the payroll team sits.
Our Remunance review, Wisemonk review and Deel review go deeper on service and contract terms, and the best EOR in India comparison covers 12 providers. Treat every published fee as a starting point and get a written quote for your salary bands.
Ask five Karnataka questions before you sign: whether the quote includes PT and LWF filings, which holiday calendar it uses, how it applies the Zone 1 minimum wage to non-tech roles, how it handles original documents now that employers may not keep them, and who registers any Bangalore office you rent.
Peorient recommends Remunance first for Bangalore hiring. It is a Pune-based India specialist founded in 2004, and its EOR cost calculator charges $149 a month for all three example roles in this guide, so a ₹17.7 lakh software engineer costs about $21,526 a year all-in.
Remunance charges $99, $149 or $199 per employee a month, set by annual gross salary, with no tier above $199. Those are its calculator figures as checked on 26 October 2026, with the optional add-ons (recruitment support, IT assets, co-working space) switched off.
At the $149 tier, the software engineer costs about $21,526 a year all-in, the DevOps engineer $24,836 and the AI/ML engineer $37,414, each $5,400 a year below a $599 global platform. If the AI/ML salary of ₹32.3 lakh rises above ₹33.18 lakh, the $199 tier adds ₹4,740 a month, or $600 a year.
Wisemonk and Asanify advertise fees from $99. If either quotes $99 at these salaries, it costs $600 a year per hire less than Remunance’s $149 tier, so compare written quotes for your exact bands.
Peorient puts Remunance first because it is our featured, affiliated India partner, and because three verifiable points support the ranking for Bangalore buyers: a long India track record, ISO 27001 certification and a top fee well below the global platforms.
Allow about 6 to 15 weeks from shortlist to first day for an experienced Bangalore hire. EOR set-up takes days to 2 weeks, with our Remunance review citing 1 to 2 weeks from candidate selection to payroll set-up and Wisemonk quoting 2 business days, but a 30 to 90 day notice period usually dominates the timeline.
| Step | When | What happens | Karnataka watch-out |
|---|---|---|---|
| 1. Scope roles and model | Week 0 | Decide EOR or entity; map each role's activities for PE risk | Keep contract negotiation and signing outside India |
| 2. Shortlist and quote | Week 1 | Get written, Karnataka-inclusive quotes from 2 or 3 EORs, starting with Remunance at its calculator tier | Confirm PT, LWF and the holiday calendar are in scope |
| 3. Benchmark and offer | Weeks 1 to 2 | Price the role at Bengaluru rates; the EOR issues the offer and contract | State work location, hybrid policy and notice terms |
| 4. Notice period | Weeks 2 to 14 | Candidate serves 30 to 90 days or agrees a buyout | Buyouts are contractual; budget for them in the offer |
| 5. Onboarding | Final week | EOR collects KYC, bank and PF details and issues the appointment letter | No retention of original certificates |
| 6. First payroll | Month 1 | PF, income tax and PT deducted; PT paid by the 20th of the next month | ₹300 PT in February |
| 7. Year-end cycle | December to January | LWF deducted from December pay and remitted by 15 January | Plan for 1 November (Kannada Rajyotsava) |
If speed matters more than a specific profile, ask your recruiter to screen for notice period as early as for skills.
Yes. An employer of record employs the staff on its Indian payroll, issues Karnataka-compliant contracts and runs PF, income tax, professional tax and Labour Welfare Fund deductions, while you direct the work. The EOR does not remove permanent establishment risk, so keep contract negotiation and signing outside India and take treaty advice for sales roles.
Published EOR fees run from $99 a month at India specialists such as Remunance, Wisemonk and Asanify to $599 at Deel and Remote; Remunance charges $99, $149 or $199 by salary band. All-in, a mid-level Bangalore software engineer on ₹17.7 lakh costs about $21,526 a year through Remunance's $149 tier, or $26,926 with a $599 fee, in Peorient's model, before GST and equipment.
Peorient recommends Remunance first. It is a Pune-based India specialist, founded in 2004 and ISO 27001-certified, whose calculator charges $99, $149 or $199 a month by salary band, so a ₹17.7 lakh Bangalore software engineer costs about $21,526 a year all-in. Peorient is affiliated with Remunance and may earn a referral fee. Compare Wisemonk, Asanify, Deel and Remote on written quotes too.
Karnataka professional tax is ₹200 a month for employees earning ₹25,000 or more a month, and ₹300 in February, a total of ₹2,500 a year from April 2025. Below ₹25,000 it is nil. The employer deducts it from salary and pays it by the 20th of the following month, so it is not an extra employer cost.
No. The Karnataka Shops and Commercial Establishments Act still caps work at 9 hours a day and 48 hours a week, or 10 hours including overtime. A June 2025 proposal for a 10-hour day (12 with overtime) was reported dropped in July 2025, and the September 2026 amendment did not change working hours.
It depends on where people work. For remote staff on an EOR's payroll, ask the EOR to confirm in writing how its registrations cover them. If you rent a dedicated Bangalore office, that establishment must be registered within 30 days of opening unless it has 10 or more workers and an OSH Code registration. Since September 2026, registration lasts until closure.
You do not need a Bangalore-based EOR to hire in the city. Remunance, Peorient's affiliated first recommendation, is based in Pune, Asanify lists a Kolkata address, and of the providers we compare only Wisemonk has its India operating company in Karnataka, listed in Bengaluru North. Deel and Remote also employ in Bangalore. Where a provider is based matters less than its Karnataka payroll track record.
Tell us your roles, salary bands and start dates through the free EOR shortlist brief and we will price Remunance, our first recommendation, at its calculator tier for your salaries alongside other EOR options suited to Bangalore hiring, with the Karnataka line items checked. It takes a few minutes and there is no obligation.
If you want to model costs first, use the India hiring cost calculator with a Bengaluru salary and the Remunance fee for that band ($99, $149 or $199), then bring the numbers to your shortlist call.
Written by
Director of Global Hiring Advisory · 6+ years experience
Arjun runs the global hiring advisory practice at Peorient. He previously led APAC operations at an EOR startup and advised at Singapore's EDB, overseeing workforce launches in 18 countries across EOR, PEO, and subsidiary models.
