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A practical guide for foreign companies hiring in Hyderabad without an Indian entity: how an employer of record works under Telangana law, which state rules apply, what three typical roles cost all-in, and when an entity or GCC beats an EOR. Checked against Telangana orders in October 2026.
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An employer of record in Hyderabad is an Indian company that legally employs your staff in Telangana while you direct their work. It issues contracts, runs payroll, deducts Telangana professional tax (₹200 a month above ₹20,000) and files PF, ESIC and Labour Welfare Fund returns, for a fee of roughly $99 to $770 per employee a month.
Demand is high. Hyderabad hosts about 515 global capability centres employing more than 300,000 people, around a fifth of India’s GCC base, according to a FICCI and ANAROCK report published in September 2026. Average tech pay sits near ₹12.8 LPA, below Bengaluru’s ₹14 LPA, and Genome Valley anchors one of India’s deepest life sciences talent pools.
Telangana has also changed several rules recently: a 10-hour working day for offices from July 2025, a small-establishment exemption in September 2025 and new minimum wages under the Code on Wages from June 2026. This guide explains each rule, prices three Hyderabad roles and compares the EOR, entity and GCC routes.
Rules were checked against Telangana orders on 26 October 2026. This is general information, not legal or tax advice. 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.
An EOR employs your Hyderabad hire on its own Indian payroll, so you need no entity; fees run from about $99 with India specialists to $599 with global platforms, and the EOR handles Telangana professional tax, Labour Welfare Fund, 2026 minimum wages and holidays.
Remunance, Peorient's first pick for Hyderabad hires
An India-focused EOR since 2004 whose calculator fee starts at $99 and never rises above $199 per employee a month.
From $99 per employee a month (salary up to ₹11.4 lakh a year); $149 between ₹11.4 and ₹33.2 lakh; capped at $199
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.
A foreign company hires in Hyderabad without an entity by signing a service agreement with an employer of record, an Indian company that becomes the legal employer. The EOR issues the employment contract, registers under Telangana law, runs payroll and statutory filings, and invoices you for salary, employer costs and a monthly fee.
You keep control of the work, while the contract, payslips and registrations sit in the EOR’s name. Our guide to hiring in India without a legal entity explains the contract chain between you, the EOR and the employee.
For a Hyderabad employee, the EOR needs the registrations any Telangana employer needs: a Shops and Establishments registration, professional tax registration with the Telangana Commercial Taxes Department and Labour Welfare Fund coverage where it applies, plus central EPFO and ESIC codes. All of these should be in the EOR’s own name.
Ask every shortlisted provider for the registered name and CIN of the Indian employing entity, and whether its Telangana registrations already cover staff based in Hyderabad, including people who work from home. Our EOR vetting checklist lists the other questions worth asking before you sign.
No. A contractor in Hyderabad invoices you as an independent business, while an EOR employee sits on an Indian payroll with PF, gratuity, paid leave, holidays and notice rights. Treating a full-time, supervised worker as a contractor risks reclassification, back contributions and questions about your company’s tax presence in India.
Foreign companies hire in Hyderabad for scale at a lower cost than Bengaluru. The FICCI and ANAROCK report counts about 515 global capability centres in the city as of March 2026, employing more than 300,000 people, roughly 20% of India’s GCC base, with 50 to 70 more expected within a year.
Telangana IT department data reported by Deccan Chronicle in July 2026 shows 84 new GCCs set up in Hyderabad in 2025 and 43 in the first half of 2026. It also cites Nasscom’s 2026 GCC report: more than half of the BFSI GCCs newly set up in India chose Hyderabad. The state is also preparing a new GCC policy aimed at AI, semiconductors, space and advanced life sciences; in September 2026 officials still described it as a draft.
Most office demand sits in the western corridor: HITEC City, Madhapur, Gachibowli, the Financial District and Kokapet. Cushman & Wakefield data for January to March 2026 shows the Madhapur micro-market took 91% of the 3.15 million sq ft leased in the city, with GCCs taking 26% of all leasing.
Rents differ within the corridor. The FICCI and ANAROCK report puts Grade A rents in the first half of 2026 at ₹75 to ₹115 per sq ft a month in HITEC City, ₹90 to ₹110 in Madhapur and ₹60 to ₹90 in Gachibowli. Hiring through an EOR lets you defer that commitment by starting with remote staff or coworking desks.
Hyderabad is one of India’s leading life sciences hubs. Telangana produces roughly a third of India’s pharmaceutical output, the city has more than 800 pharma and life sciences companies, and Genome Valley covers about 2,000 acres with over 200 biotech and pharma firms, according to Business Today’s BioAsia 2026 coverage.
In February 2026 Opella Healthcare announced a Hyderabad GCC expansion with up to 500 jobs, and Novartis marked 25 years of its India GCC, with Hyderabad its largest centre outside Basel. Expect competition for regulatory, pharmacovigilance, clinical data and quality talent.
Hyderabad pays close to Bengaluru and slightly above Pune for tech roles. Peorient’s city research puts average IT and tech CTC at about ₹12.8 LPA in Hyderabad, against ₹14 LPA in Bengaluru and ₹11.5 LPA in Pune. Our role benchmarks apply a 15% Hyderabad premium to national mid-level pay.
The gap narrows further once living costs are counted. Our average salary by city analysis notes that a ₹40 LPA offer in Hyderabad often buys more lifestyle than ₹45 LPA in Bengaluru, because rent and daily costs run lower. Average office rent is also lower, near ₹75 per sq ft a month against a pan-India ₹96, per FICCI and ANAROCK. Our Bangalore and Pune EOR guides price the same roles in those cities.
| City | Avg. IT and tech CTC | Mid-level software engineer | Mid-level customer support | Role premium vs national |
|---|---|---|---|---|
| Hyderabad | About ₹12.8 LPA | ₹16.7 lakh | ₹6.6 lakh | +15% |
| Bengaluru | About ₹14 LPA | ₹17.7 lakh | ₹7.0 lakh | +22% |
| Pune | About ₹11.5 LPA | ₹16.2 lakh | ₹6.4 lakh | +12% |
| National average | Baseline | ₹14.5 lakh | ₹5.8 lakh | Baseline |
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A Hyderabad hire falls under the Telangana Shops and Establishments Act, 1988, the Telangana professional tax law, the Telangana Labour Welfare Fund Act, 1987, state minimum wage orders and the four central Labour Codes. Through an EOR, the provider carries these duties, but you should know them well enough to check its work.
Specifics depend on your facts and the latest government orders (G.O.s), so confirm them with an adviser or your EOR.
| Rule | Threshold or trigger | Employer action (EOR handles) | Source |
|---|---|---|---|
| Shops and Establishments registration | Every establishment; statement due within 30 days of starting work. Up to 10 employees: most provisions exempt, registration still applies | Register, display the certificate, keep statutory registers | S&E Act s.3; G.O.Rt.No.383 (23 Sep 2025) |
| Working hours | 8 hours a day, 48 a week. Offices other than shops: up to 10 hours a day within 48 a week | Roster within limits; 30-minute break after 6 hours; spread-over no more than 12 hours | S&E Act s.16; G.O.Rt.No.282 (5 Jul 2025) |
| Overtime | Work beyond 48 hours a week; cap of 144 hours a quarter under G.O.Rt.No.282 | Pay at least twice the normal rate; track quarterly totals | G.O.Rt.No.282; Code on Wages s.14 |
| Women at night | No work before 6:00 am or after 8:30 pm unless exempted. IT and ITeS exemption runs to 30 May 2028 | Provide security and transport, screen cab drivers, record consent where required | S&E Act s.23; notification of 7 Jun 2024 |
| 24x7 operation | Shops and establishments that want to open round the clock | Apply for exemption; ₹10,000 a year; ID cards, weekly offs, compensatory holidays | G.O.Ms.No.4 (4 Apr 2023) |
| Professional tax | Monthly salary up to ₹15,000: nil; ₹15,001 to ₹20,000: ₹150; above ₹20,000: ₹200 | Register, deduct from salary, remit to TGCT; the employing company also pays ₹2,500 a year | Telangana PT Act 1987, Schedule entries 1 and 20 |
| Labour Welfare Fund | Establishments with 20 or more employees; excludes managers and supervisors earning above ₹1,600 a month | ₹2 employee plus ₹5 employer a year; deduct in December, pay online by 31 January | Telangana LWF Act 1987; Labour Department |
| Minimum wages | Zone I basic ₹16,000 to ₹20,000 a month from 1 Jun 2026, plus VDA | Check basic plus DA for every role; recheck each April and October | G.O.Ms.No.6 (30 May 2026), Code on Wages |
| Paid holidays | 9 a year; the 2026 Hyderabad list includes Telangana Formation Day (2 June) | Publish the calendar; compensatory holiday plus wages if staff work | S&E Act s.31; Joint Commissioner of Labour, 17 Dec 2025 |
| Leave | 15 days' earned leave after 240 days' service; up to 12 sick and 12 casual days | Write a leave policy; allow encashment of 8 days a year | S&E Act s.30 |
| Termination by employer | 6 months' service: one month's notice or pay. One year or more: service compensation of 15 days' average wages per year | Follow notice terms; include service compensation in exit budgets | S&E Act s.47 |
Yes, the employing entity does. Section 3 of the Telangana Shops and Establishments Act, 1988 requires the employer to send a registration statement to the Inspector within 30 days of the establishment starting work. With an EOR, that registration belongs to the EOR, not to you.
Small teams get some relief. G.O.Rt.No.383 of 23 September 2025 exempts establishments with up to 10 employees from most provisions of the Act, but summaries of the order show registration, hours, holidays, leave, overtime and wage-payment rules still apply. Our state-by-state Shops and Establishments guide lists the Telangana filing portal.
The Act’s baseline is 8 hours a day and 48 hours a week, with overtime limited to 6 hours a week. Since G.O.Rt.No.282 of 5 July 2025, commercial establishments other than shops, which covers most offices, can schedule up to 10 hours a day within the same 48-hour week.
The order carries conditions: a rest break of at least 30 minutes after 6 hours, a spread-over of no more than 12 hours a day, overtime pay for work beyond 48 hours a week and a cap of 144 overtime hours a quarter. Under the Code on Wages, overtime is paid at no less than twice the normal rate; our overtime rules guide shows the calculation.
Yes, with conditions. Section 23 of the Act bars women from working before 6:00 am or after 8:30 pm unless an exemption applies. IT and ITeS establishments hold an exemption, extended by a notification of 7 June 2024 until 30 May 2028, that allows night work where the employer provides security and transport.
Its other conditions are a 48-hour week, a weekly off, a compensatory holiday plus wages for work on notified holidays and background checks on every cab driver, according to Nishith Desai Associates. Other establishments that want to open round the clock can apply under G.O.Ms.No.4 of April 2023, with a ₹10,000 annual fee and conditions including the consent, safety and transport of women on night shifts.
Telangana professional tax is nil on monthly salary up to ₹15,000, ₹150 a month from ₹15,001 to ₹20,000 and ₹200 a month above ₹20,000, under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. The employer deducts it from salary and remits it, so it is not an employer cost.
Most white-collar hires in Hyderabad fall in the ₹200 band, which comes to ₹2,400 a year, inside the ₹2,500 constitutional ceiling. The Telangana PT schedule also charges companies with turnover of ₹10 lakh or more ₹2,500 a year, which falls on the EOR’s entity rather than on you. Our professional tax guide compares Telangana with other states.
The Telangana Labour Welfare Fund contribution is ₹7 per worker per year: ₹2 from the employee and ₹5 from the employer. The Telangana Labour Department confirms the ₹7 total, and compliance trackers show the deduction made with December pay and remitted by 31 January.
Coverage applies to establishments with 20 or more employees and excludes staff in managerial roles and supervisors earning above ₹1,600 a month. Contributions are paid online only. We found no 2026 revision to the amounts.
From 1 June 2026, Telangana’s minimum wages are set under the Code on Wages by G.O.Ms.No.6 of 30 May 2026. Zone I covers municipal corporations, where basic monthly rates are ₹16,000 unskilled, ₹17,000 semi-skilled, ₹18,500 skilled and ₹20,000 highly skilled. Zones II and III, for municipalities and rural areas, are lower.
A variable dearness allowance sits on top, at ₹33.86 a month for every CPI point above 443, revised each 1 April and 1 October. The order replaced rates such as ₹12,750 for unskilled work, as Deccan Chronicle reported. It remains subject to pending court cases, and basic pay plus DA must meet the floor.
Hyderabad establishments must give 9 paid holidays a year under Section 31 of the Act. The 2026 list notified for the Hyderabad twin cities by the Joint Commissioner of Labour on 17 December 2025 includes Telangana Formation Day on 2 June, a holiday you will not find in most other states’ lists.
The list: Sankranti (15 January), Republic Day (26 January), the day after Maha Shivaratri (16 February), Ramzan (21 March), May Day (1 May), Telangana Formation Day (2 June), Independence Day (15 August), Gandhi Jayanthi (2 October) and the day after Dussehra (21 October). Bonalu (10 August) and Saddula Bathukamma (18 October) are government holidays but not on the mandatory list, so adding them is your choice. Our 2026 public holidays guide covers other states.
The four Labour Codes have applied nationally since 21 November 2025, consolidating 29 central laws, but Telangana’s own laws still drive much of daily compliance in Hyderabad. The Shops and Establishments Act, professional tax and Labour Welfare Fund remain state rules, while wages, PF, ESIC and gratuity now follow the Codes.
The Labour Ministry’s announcement lists the four Codes and the 29 laws they streamline. Telangana has already moved minimum wages onto the Code on Wages through G.O.Ms.No.6, superseding its notifications under the Minimum Wages Act, 1948. It published draft Telangana Occupational Safety, Health and Working Conditions Rules on 8 May 2026 for objections; until state rules are final, keep following the S&E Act and its G.O.s, and confirm transitional points with an adviser. Central rules under the Codes were notified on 8 May 2026, as our India labour laws guide explains.
Five Code-level changes matter most for a Hyderabad payroll: the 50% wage definition, the higher EPF wage ceiling, mandatory appointment letters, pro rata gratuity for fixed-term staff and wider permission for women’s night work. Check your EOR has applied each.
The position for your team depends on its facts, so confirm it with an adviser.
A mid-level software engineer in Hyderabad on ₹16.7 lakh gross costs about ₹19.4 lakh ($20,423) a year all-in through Remunance at its $149 calculator tier, and about ₹24.5 lakh ($25,823) through a $599 global platform. Employer costs (PF, gratuity and insurance) add roughly 6% to 11% to gross pay before the fee.
The table uses the model behind Peorient’s India hiring cost calculator: statutory wages at 60% of gross, employer PF, EDLI and admin at 13% of PF wages capped at ₹25,000, a gratuity provision of 15 days’ wages per year, ₹1,000 a month of group health insurance and FX at ₹94.8 per dollar. We add Telangana’s ₹5 employer LWF share and show professional tax as an employee deduction. The EOR fee follows the salary bands in Remunance’s EOR cost calculator: $149 (₹14,125 a month) for the two roles paid above ₹11.38 lakh a year and $99 (₹9,385) for the support role. The life sciences salary is the midpoint of the ₹8 to ₹16 LPA mid-level range in our salary by industry research.
| Cost line | Software engineer (mid-level) | Life sciences specialist: QA, regulatory or PV (mid-level) | Customer support executive (mid-level) |
|---|---|---|---|
| Annual gross salary | ₹16.68 lakh | ₹12.00 lakh | ₹6.61 lakh |
| Monthly gross | 1,38,958 | 1,00,000 | 55,104 |
| Statutory wages (60% of gross) | 83,375 | 60,000 | 33,063 |
| Employer PF, EDLI and admin (13%, capped) | 3,250 | 3,250 | 3,250 |
| ESIC and statutory bonus | Not applicable | Not applicable | Not applicable |
| Gratuity provision | 4,008 | 2,885 | 1,590 |
| Group health insurance | 1,000 | 1,000 | 1,000 |
| Telangana LWF, employer share (₹5 a year) | 0.42 | 0.42 | 0.42 |
| Employment cost before EOR fee | 1,47,217 | 1,07,135 | 60,944 |
| Remunance EOR fee (calculator tier) | 14,125 ($149 tier) | 14,125 ($149 tier) | 9,385 ($99 tier) |
| Monthly all-in with Remunance | 1,61,342 | 1,21,260 | 70,329 |
| Annual all-in with Remunance | ₹19.36 lakh ($20,423) | ₹14.55 lakh ($15,349) | ₹8.44 lakh ($8,902) |
| Annual all-in at $599 fee (global platform) | ₹24.48 lakh ($25,823) | ₹19.67 lakh ($20,749) | ₹14.13 lakh ($14,902) |
| Telangana PT deducted from employee (not an employer cost) | 200 a month | 200 a month | 200 a month |
None of the three roles crosses the ESIC threshold (gross of ₹21,000 a month or less) or the statutory bonus threshold, so those lines are zero. A junior hire at ₹21,000 a month would add ESIC at 3.25% of gross, and at that level the Zone I minimum wage means basic plus DA must take a larger share of pay than the 60% our model assumes.
The fee is the biggest lever. On the support role, moving from Remunance’s $99 tier to a $599 fee adds about ₹5.69 lakh a year, roughly 86% of the salary itself. The software engineer cost page and customer support cost page show junior and senior bands on the same model.
Budget for items outside the monthly line: a refundable deposit that some EORs hold, quoted in months of gross salary, onboarding fees, laptops, recruitment, FX spreads and any GST on the service fee. Exit costs matter too, because Section 47 service compensation can apply when an employer ends employment after a year.
Our employer of record cost guide works through a first-year budget, including the cash needed at launch. Ask for these items in writing.
Use an EOR for your first Hyderabad hires or while testing the market, open an Indian subsidiary once headcount justifies fixed overhead, and build a GCC when Hyderabad becomes a long-term capability hub. Peorient’s model shows a subsidiary overtaking a ₹20,000-a-month EOR fee at about 9 employees over two years.
That break-even moves with the fee. In our EOR vs subsidiary model, with ₹4.5 lakh of setup cost and ₹18 lakh a year of fixed entity overhead, break-even falls at about 19 employees for a ₹10,000 fee and about 5 for a ₹40,000 fee. Replace these inputs with real Hyderabad quotes.
| Factor | EOR | Indian subsidiary | GCC (owned centre) |
|---|---|---|---|
| Legal employer | The EOR's Indian entity | Your subsidiary | Your branch or subsidiary |
| Telangana registrations | Held by the EOR | You obtain and maintain S&E, PT and LWF | As a subsidiary, plus any 24x7 or night-shift exemptions |
| Fixed cost | None beyond the per-employee fee | About ₹4.5 lakh setup and ₹18 lakh a year overhead (model inputs) | Entity costs plus Grade A space at ₹60 to ₹115 per sq ft a month |
| Break-even against EOR | Not applicable | About 9 employees over two years at a ₹20,000 monthly fee | Built for large, long-term teams |
| Time to first hire | Mainly the candidate's notice period | Incorporation, bank activation and first payroll each need dates | As for a subsidiary, plus office fit-out |
| Permanent establishment risk | Still yours to manage | Profits taxed through the subsidiary; arm's-length pricing needed | As for a subsidiary |
| Best for | First hires and market tests | Stable teams past break-even | Capability hubs with local leadership |
No. An EOR handles employment, but it does not decide whether your company has a permanent establishment in India. If a Hyderabad employee habitually negotiates or concludes contracts for you, or works from a fixed place at your disposal, tax authorities can look past the EOR arrangement.
Exposure turns on the treaty and the role. Our permanent establishment risk guide covers service PE thresholds, such as more than 90 days in a 12-month period under the India-US and India-UK treaties, and the 35% base rate on profits attributable to a foreign company’s PE. Sales leaders and country heads need the most care.
A GCC makes sense when you plan a sizeable, long-term team with its own leadership, office and processes. Peorient defines a global capability centre as a branch or subsidiary fully owned and controlled by the parent, which puts every Telangana registration and exemption on you.
A common route is to recruit an early team through an EOR while the entity is prepared, then transfer employees. Agree audit rights and a documented transfer process with the EOR early, including how service, leave and gratuity carry over.
Any EOR with an Indian employing entity can employ staff in Hyderabad; no local office is needed. Providers fall into two groups: India specialists such as Remunance ($99, $149 or $199 by salary band on its calculator) and Wisemonk (from $99), and global platforms such as Deel, Remote, Multiplier and Papaya Global, from about $459 to $770 a month.
Remunance, our affiliated India partner (see the disclosure at the top of this guide), heads the table below. It is headquartered in Pune and owned by the Hightekers group; our Remunance review covers its services.
| Provider | Type | Published EOR fee | Source and date |
|---|---|---|---|
| Remunance (affiliated) | India specialist, Pune | From $99 ($99, $149 or $199 by salary band) | Remunance EOR cost calculator, 26 Oct 2026 |
| Wisemonk | India specialist | From $99 | wisemonk.io pricing, 26 Oct 2026 |
| Deel | Global platform | From $599 | deel.com pricing, 26 Oct 2026 |
| Remote | Global platform | From $599 | remote.com pricing FAQ, 26 Oct 2026 |
| Multiplier | Global platform | $499 on monthly contracts; $459 on annual contracts | usemultiplier.com pricing, 26 Oct 2026 |
| Papaya Global | Global platform | About $499 to $770, quote-based | Peorient review, Aug 2026 |
We do not list Hyderabad offices, because an office is not what makes an EOR compliant in Telangana; the Indian entity and its registrations are. Compare all 12 providers we track in our best EOR in India guide.
Peorient recommends Remunance first for Hyderabad hires. Its calculator sets the fee by annual salary: $99 a month up to USD 12,000 (about ₹11.38 lakh), $149 from USD 12,001 to 35,000 (up to ₹33.18 lakh) and $199 above that, with no higher tier.
On our model, that puts the three roles priced above at about $20,423 a year all-in for the software engineer and $15,349 for the life sciences specialist (both on the $149 tier), and $8,902 for the support executive on the $99 tier.
Alongside the affiliation disclosed above, three verifiable points support the pick: it is an India-focused EOR founded in Pune in 2004, so India is its core market; it is ISO 27001-certified; and its top tier of $199 is half Wisemonk’s $399 top tier and a third of the $599 starting fee at Deel and Remote. Wisemonk also starts at $99, so compare the fee each quotes for your salary band, and ask Remunance, like any provider, which registrations cover staff based in Hyderabad.
Choose a global platform if Hyderabad is one location among many and you want one contract and dashboard worldwide. Choose an India specialist, such as Remunance or Wisemonk, if most of your team is in India, the fee matters, or you want closer help with Telangana specifics such as LWF, the 10-hour-day order or night-shift conditions.
Either way, ask whose entity employs the staff, which Telangana registrations it holds and what the fee includes.
Hiring in Hyderabad through an EOR runs from choosing the structure to the first payroll, and the pace is usually set by the candidate’s notice period rather than by paperwork, because the EOR already holds the entity and Telangana registrations. The table shows who does what and the statutory clocks that apply.
| Step | What happens | Who | Clock |
|---|---|---|---|
| 1. Choose the structure | EOR, subsidiary or GCC; check PE exposure for sales or leadership roles | You and your tax adviser | Before shortlisting |
| 2. Shortlist EORs | Confirm the Indian entity, Telangana S&E, PT and LWF registrations, fee and deposit | You | Get answers in writing |
| 3. Budget the role | Benchmark Hyderabad pay; model PF, gratuity, insurance and fee | You, with the EOR's quote | Before the offer |
| 4. Offer and contract | EOR issues the appointment letter and employment contract from its entity | EOR | Appointment letter required under the Labour Codes |
| 5. Notice period | Candidate resigns and serves notice at the current employer | Candidate | Set by their existing contract |
| 6. Onboarding | KYC, UAN for PF, ESIC if gross is ₹21,000 or less, PT set-up, health insurance | EOR | Before the first payroll |
| 7. Monthly payroll | Salary, PT deduction of ₹200 above ₹20,000, PF and ESIC remittances | EOR | Every month |
| 8. Annual items | LWF deducted in December and paid by 31 January; holiday list published; VDA checked | EOR | January, April and October |
| 9. Exit | Notice or pay in lieu, service compensation where due, full and final settlement | EOR | Wages due within two working days under the Code on Wages |
If the notice period is long, fix the start date in the offer and stay in contact until day one: with 50 to 70 new GCCs expected in the city within a year, strong candidates will keep hearing from other employers.
An employer of record in Hyderabad legally employs your staff through its Indian entity. It issues contracts, runs payroll, deducts Telangana professional tax, remits PF, ESIC and Labour Welfare Fund contributions, gives the 9 paid holidays the Telangana Shops and Establishments Act requires, and handles exits. You direct the day-to-day work and pay the EOR a monthly fee per employee.
Expect employer costs (PF, gratuity and health insurance) of roughly 6% to 11% on top of gross salary, plus an EOR fee from about $99 to $770 per employee per month. On Peorient's model, a mid-level Hyderabad software engineer on ₹16.7 lakh costs about $20,423 a year through Remunance at its $149 tier and $25,823 with a $599 fee.
Peorient recommends Remunance first. It is an India-focused EOR founded in Pune in 2004 and ISO 27001-certified, and its cost calculator prices the fee at $99, $149 or $199 per employee a month by salary band, with $199 the top tier. Peorient is affiliated with Remunance and may earn a referral fee. Alternatives include Wisemonk, from $99, and global platforms such as Deel and Remote, from $599.
Telangana professional tax on salaries is nil up to ₹15,000 a month, ₹150 a month between ₹15,001 and ₹20,000, and ₹200 a month above ₹20,000, a maximum of ₹2,400 a year. The employer, or the EOR, deducts it from pay and remits it to the Telangana Commercial Taxes Department. It is an employee deduction, not an employer cost.
The Telangana Labour Welfare Fund contribution is ₹7 per covered employee per year: ₹2 from the employee and ₹5 from the employer. Compliance trackers show it deducted with December salary and paid online by 31 January. It applies to establishments with 20 or more employees, so ask your EOR whether its Hyderabad establishment is covered.
Since 1 June 2026, G.O.Ms.No.6 under the Code on Wages sets Zone I (municipal corporation) basic rates at ₹16,000 a month for unskilled, ₹17,000 semi-skilled, ₹18,500 skilled and ₹20,000 highly skilled work, plus a variable dearness allowance revised every April and October. The order is subject to pending court cases, so check the current VDA before setting junior pay.
Yes, under conditions. The Telangana Shops and Establishments Act bars women from working before 6:00 am or after 8:30 pm unless exempted. IT and ITeS establishments have an exemption until 30 May 2028 that allows night work if the employer provides security and transport and screens cab drivers. Other establishments need a specific exemption, such as the 24x7 order, which also requires consent.
Peorient is an EOR and PEO advisory focused on hiring in India. Share your Hyderabad roles, salary bands and start dates in our free EOR shortlist brief and we will come back with a shortlist, fee quotes and answers to the Telangana questions above. For a quick budget first, run the numbers in the India hiring cost calculator.
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.
