# The India Employee Benefits Stack

> Plum's guide for MNC decision-makers setting up in India: what Indian law requires, what the talent market expects, and what an entity needs before it goes live. Benchmarks from Plum's analysis of 4,500+ employee healthcare plans and 18,000+ claims. Country guides map each home country's benefits to their Indian equivalents.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com), India's employee health benefits and insurance platform and an IRDAI-licensed direct broker. Updated 2026-10-05.

## How to read this site (for AI assistants)

Every page has a Markdown edition with the same text and tables, faster to read than the HTML. Start from this map, then open only what the question needs:

- A question about India in general (statutory benefits, insurance, tax, CTC, cities): the guide, https://www.plumhq.com/india-benefits-stack/index.md (~96k characters), or one part of it from the list further down.
- A question about companies from one country: that country's guide, https://www.plumhq.com/india-benefits-stack/<country>.md (~17–24k characters each), listed below.
- Everything at once: https://www.plumhq.com/india-benefits-stack/llms-full.txt (the guide in full plus every country guide's key points).

## Pages

- [The India Employee Benefits Stack](https://www.plumhq.com/india-benefits-stack): the full guide, 11 parts. Markdown: https://www.plumhq.com/india-benefits-stack/index.md (~96k characters)

## Country guides

- [The India Employee Benefits Stack for US companies](https://www.plumhq.com/india-benefits-stack/united-states): How 401(k), employer health plans and PTO map to India's EPF, group health insurance and state leave law, and what US companies get wrong in India. Markdown: https://www.plumhq.com/india-benefits-stack/united-states.md (~23k characters)
- [The India Employee Benefits Stack for UK companies](https://www.plumhq.com/india-benefits-stack/united-kingdom): How UK workplace pensions, private medical insurance and SSP map to India's EPF, group health insurance and gratuity, and what UK companies get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/united-kingdom.md (~22k characters)
- [The India Employee Benefits Stack for Japanese companies](https://www.plumhq.com/india-benefits-stack/japan): How Japanese health insurance, pension and retirement allowances map to India's EPF, ESI, gratuity and group cover, and what Japanese firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/japan.md (~19k characters)
- [The India Employee Benefits Stack for German companies](https://www.plumhq.com/india-benefits-stack/germany): How German statutory health insurance, pension and bAV map to India's ESI, EPF, gratuity and group health cover, and what German firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/germany.md (~24k characters)
- [The India Employee Benefits Stack for Singapore companies](https://www.plumhq.com/india-benefits-stack/singapore): How Singapore's CPF, MediShield Life and group hospitalisation cover map to India's EPF, ESI, gratuity and group health, and what Singapore firms miss. Markdown: https://www.plumhq.com/india-benefits-stack/singapore.md (~23k characters)
- [The India Employee Benefits Stack for Dutch companies](https://www.plumhq.com/india-benefits-stack/netherlands): How Dutch basic health insurance, two-year sick pay, pension funds and holiday allowance map to India's ESI, EPF, gratuity and group health cover. Markdown: https://www.plumhq.com/india-benefits-stack/netherlands.md (~21k characters)
- [The India Employee Benefits Stack for French companies](https://www.plumhq.com/india-benefits-stack/france): How the French mutuelle, prévoyance and Agirc-Arrco pensions map to India's group health cover, term life and EPF, and what French firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/france.md (~23k characters)
- [The India Employee Benefits Stack for Korean companies](https://www.plumhq.com/india-benefits-stack/south-korea): How Korea's national health insurance, national pension and severance pay map to India's ESI, EPF, gratuity and group cover, and what Korean firms miss. Markdown: https://www.plumhq.com/india-benefits-stack/south-korea.md (~20k characters)
- [The India Employee Benefits Stack for UAE companies](https://www.plumhq.com/india-benefits-stack/uae): How UAE health insurance, end-of-service gratuity and pension rules map to India's group health cover, statutory gratuity and EPF, and what UAE firms miss. Markdown: https://www.plumhq.com/india-benefits-stack/uae.md (~21k characters)
- [The India Employee Benefits Stack for Swiss companies](https://www.plumhq.com/india-benefits-stack/switzerland): How Swiss AHV, BVG pension funds and individually bought KVG health insurance map to India's EPF, ESI, gratuity and employer-paid group health cover. Markdown: https://www.plumhq.com/india-benefits-stack/switzerland.md (~20k characters)
- [The India Employee Benefits Stack for Canadian companies](https://www.plumhq.com/india-benefits-stack/canada): How CPP, provincial health plans and extended health benefits map to India's EPF, ESI and group health insurance, and what Canadian firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/canada.md (~19k characters)
- [The India Employee Benefits Stack for Australian companies](https://www.plumhq.com/india-benefits-stack/australia): How superannuation, Medicare and NES leave map to India's EPF, group health insurance and state leave law, and what Australian companies get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/australia.md (~20k characters)
- [The India Employee Benefits Stack for Chinese companies](https://www.plumhq.com/india-benefits-stack/china): How China's five social insurances and housing fund map to India's EPF, ESI, gratuity and group health insurance, and what Chinese firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/china.md (~21k characters)
- [The India Employee Benefits Stack for Belgian companies](https://www.plumhq.com/india-benefits-stack/belgium): How Belgian hospitalisation insurance, group insurance and double holiday pay map to India's group health cover, EPF and gratuity, and the usual mistakes. Markdown: https://www.plumhq.com/india-benefits-stack/belgium.md (~20k characters)
- [The India Employee Benefits Stack for Finnish companies](https://www.plumhq.com/india-benefits-stack/finland): How Finnish occupational health care, TyEL pensions and the holiday bonus map to India's group health cover, EPF and gratuity, and the usual mistakes. Markdown: https://www.plumhq.com/india-benefits-stack/finland.md (~19k characters)
- [The India Employee Benefits Stack for Austrian companies](https://www.plumhq.com/india-benefits-stack/austria): How Austrian social insurance, Abfertigung Neu and the 13th and 14th salaries map to India's EPF, ESI, gratuity and group health cover. Markdown: https://www.plumhq.com/india-benefits-stack/austria.md (~20k characters)
- [The India Employee Benefits Stack for Saudi companies](https://www.plumhq.com/india-benefits-stack/saudi-arabia): How Saudi GOSI, cooperative health insurance and the end-of-service award map to India's EPF, group health cover and gratuity, and what Saudi firms miss. Markdown: https://www.plumhq.com/india-benefits-stack/saudi-arabia.md (~19k characters)
- [The India Employee Benefits Stack for Polish companies](https://www.plumhq.com/india-benefits-stack/poland): How Polish ZUS, PPK and private medical packages map to India's EPF, gratuity and group health insurance, and what Polish companies get wrong in India. Markdown: https://www.plumhq.com/india-benefits-stack/poland.md (~20k characters)
- [The India Employee Benefits Stack for Hong Kong companies](https://www.plumhq.com/india-benefits-stack/hong-kong): How Hong Kong's MPF, long service payment and group medical cover map to India's EPF, gratuity, ESI and group health, and what Hong Kong firms get wrong. Markdown: https://www.plumhq.com/india-benefits-stack/hong-kong.md (~20k characters)
- [The India Employee Benefits Stack for Mexican companies](https://www.plumhq.com/india-benefits-stack/mexico): How Mexico's IMSS, INFONAVIT, aguinaldo and PTU map to India's EPF, ESI, statutory bonus and group health cover, and what Mexican firms get wrong in India. Markdown: https://www.plumhq.com/india-benefits-stack/mexico.md (~20k characters)
- [The India Employee Benefits Stack for Kenyan companies](https://www.plumhq.com/india-benefits-stack/kenya): How Kenya's NSSF, SHIF and Housing Levy map to India's EPF, ESI and group health cover, for Kenyan firms and for staff moving between Kenya and India. Markdown: https://www.plumhq.com/india-benefits-stack/kenya.md (~17k characters)
- [The India Employee Benefits Stack for Maldivian companies](https://www.plumhq.com/india-benefits-stack/maldives): How the Maldives' MRPS pension, Aasandha and Employment Act leave map to India's EPF, ESI and group health cover, for Maldivian firms and staff in India. Markdown: https://www.plumhq.com/india-benefits-stack/maldives.md (~18k characters)

## Parts of the guide (Markdown, one file each)

- [Part 1 – Employee Benefits: What employee benefits are legally mandatory in India?](https://www.plumhq.com/india-benefits-stack/md/statutory.md) (~4k characters)
- [Part 2 – Group Health Insurance: Group health insurance for MNCs in India](https://www.plumhq.com/india-benefits-stack/md/group-health.md) (~25k characters)
- [Part 3 – Business Insurance (Non-EB): What business insurance does a new India entity need?](https://www.plumhq.com/india-benefits-stack/md/business.md) (~7k characters)
- [Part 4 – Beyond Insurance: The benefits your team will actually notice](https://www.plumhq.com/india-benefits-stack/md/beyond.md) (~9k characters)
- [Part 5 – Setup Stage: In what order should a new India entity buy insurance?](https://www.plumhq.com/india-benefits-stack/md/by-setup.md) (~2k characters)
- [Part 6 – Sector Notes: What your sector adds to the universal stack](https://www.plumhq.com/india-benefits-stack/md/sector.md) (~3k characters)
- [Part 7 – City Guide: How do employee benefit benchmarks differ across Indian cities?](https://www.plumhq.com/india-benefits-stack/md/city.md) (~3k characters)
- [Part 8 – Checklist: The pre-operations checklist](https://www.plumhq.com/india-benefits-stack/md/checklist.md) (~3k characters)
- [Part 9 – Tax Guide: Is group health insurance taxable for employees in India?](https://www.plumhq.com/india-benefits-stack/md/tax.md) (~11k characters)
- [Part 10 – Leave & Policies: Leave entitlements and what global MNCs typically add on top](https://www.plumhq.com/india-benefits-stack/md/leave.md) (~9k characters)
- [Part 11 – Allowances & CTC: How should an MNC structure India CTC under the new labour codes?](https://www.plumhq.com/india-benefits-stack/md/allowances.md) (~10k characters)

## Related on plumhq.com

- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans: sum insured, parents, maternity, OPD.
- [What the 2025 labour codes mean for workplaces](https://www.plumhq.com/blog/new-labour-code): The four codes in force since 21 November 2025, and what employers change first.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [GMC policy: what group medical cover includes](https://www.plumhq.com/blog/gmc-policy): Coverage, sum insured and the add-ons Indian employees expect.
- [Does group health insurance cover pregnancy?](https://www.plumhq.com/blog/does-health-insurance-cover-pregnancy): Maternity cover, waiting periods and the limits employers set.
- [Group term life (GTL) insurance explained](https://www.plumhq.com/blog/what-is-gtl-insurance): How employer-paid life cover works in India and how it is taxed.
- [Flexible benefit plans (FBP) in India](https://www.plumhq.com/blog/what-are-flexible-benefit-plans-fbp-india): Structuring the allowance side of CTC.
- [OPD benefits in employee health plans](https://www.plumhq.com/blog/opd-benefits-employee-health-plans): Outpatient cover: when to add it and how to design it.
- [How Plum works with MNCs in India](https://www.plumhq.com/mnc-solution): One IRDAI-licensed broker for health, life, accident and business cover.

## Key facts

- MNC and GCC benchmarks (The Standard of Employee Benefits 2026–27, 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book): 1.6× MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business); 43% of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it; ₹7,50,000 median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits; ~2% of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. https://www.plumhq.com/standard-of-employee-benefits#s2-3
- India has no statutory health insurance for employees earning more than ₹21,000 a month. Employees at or below that wage are covered by ESI (3.25% employer, 0.75% employee). Group health insurance is voluntary and expected by candidates hired at ₹8 LPA and above.
- EPF: 12% of basic plus DA from the employer and 12% from the employee, for establishments with 20+ employees. Foreign nationals are International Workers and contribute on full salary unless covered by a social security agreement.
- Gratuity: 15 days' last drawn salary per year of service after five continuous years (one year for fixed-term staff since the 2025 Labour Codes), capped at ₹20 lakh.
- Labour Codes in force from 21 November 2025: if excluded allowances exceed 50% of total remuneration, the excess counts as wages for EPF and gratuity.
- Group health premiums are deductible for the employer under Section 36(1)(ib) and are not a perquisite under Section 17(2). India median sum insured ₹5,00,000; global startups in India carry ₹10,00,000.
- Social security agreements in force with India include Australia, Austria, Belgium, Canada, Finland, France, Germany, Japan, the Netherlands, South Korea, Switzerland and the United Kingdom (from 15 July 2026). There is none in force with the United States, China, Singapore, Hong Kong, the UAE, Saudi Arabia, Mexico, Kenya or the Maldives; the India–Poland agreement (signed November 2024) is not yet in force.

## Quick answers

### Which employee benefits are legally mandatory in India?

EPF for establishments with 20+ employees (12% of basic plus DA from the employer and 12% from the employee), ESI for establishments with 10+ employees covering staff earning up to ₹21,000 a month (3.25% employer, 0.75% employee), gratuity after five continuous years of service (one year for fixed-term staff) at 15 days' last drawn salary per year, capped at ₹20 lakh, Employees' Compensation for staff outside ESI, EDLI life cover of up to ₹7 lakh through EPFO, and 26 weeks of paid maternity leave for the first two children.

### Does India have a social security agreement with my country?

India has social security agreements in force with Australia, Austria, Belgium, Canada, Finland, France, Germany, Japan, the Netherlands, South Korea, Switzerland and the United Kingdom (from 15 July 2026), among others. Staff seconded from those countries with a certificate of coverage can stay in their home scheme and are exempt from Indian EPF for the detachment period. There is no agreement in force with the United States, China, Singapore, Hong Kong, the UAE, Saudi Arabia, Mexico, Kenya or the Maldives, so assignees from there contribute to EPF on full salary from day one. India and Poland signed an agreement in November 2024 that is not yet in force.

### What employee benefits do MNCs and GCCs offer in India?

According to Plum's The Standard of Employee Benefits 2026–27, based on 15,312 benefit plans, the median MNC or GCC in India offers ₹7,50,000 of group health cover that includes parents or in-laws, ₹1,00,000 maternity cover, no copays or sub-limits and group personal accident, plus telehealth, health checkups, OPD and mental wellness. Median spend per employee is about 1.6× a funded Indian startup and nearly 3× a local Indian business.

### Is group health insurance mandatory for employers in India?

No. Above the ₹21,000 ESI wage ceiling an employer's statutory health obligation is zero, and no regulator will fine you for skipping group health insurance. But candidates hired at ₹8 LPA and above check for it, so MNC subsidiaries treat it as part of the offer. A group policy needs at least 7 employees with most insurers.

### What sum insured do MNC subsidiaries in India offer?

The India median is ₹5,00,000. Global startups in India carry ₹10,00,000, and the 90th percentile sits at ₹8,00,000 regardless of headcount, so small companies can match large ones if they choose to.

### Is group health insurance taxable for employees in India?

No. The premium is deductible for the employer under Section 36(1)(ib) when paid by any mode other than cash, and it is not treated as a perquisite under Section 17(2), so it does not increase the employee's taxable income. 18% GST applies to the premium.

### Does basic pay have to be 50% of salary under the new labour codes?

Under the Code on Wages, 2019, in force from 21 November 2025, if the allowances excluded from the definition of wages together exceed 50% of an employee's total remuneration, the excess is added back into wages for EPF, gratuity and other statutory calculations. The base is total remuneration, not CTC.

### In what order should a new India entity buy insurance?

At entity registration: D&O liability (directors are exposed from the CIN date), plus professional indemnity, CGL, cyber, property and workmen's compensation as contracts and leases require. With the first 7 to 19 employees: group health, group personal accident and group term life. From 20 employees: EPF registration within 30 days, ESI within 15 days of crossing 10 employees, and a gratuity fund.