What Does a PEO Cost in India? 2026 Pricing Breakdown
A PEO in India in 2026 typically costs a flat per-employee monthly fee on top of salaries and statutory contributions — at SynkPay, that's $349 per employee per month, flat, with no setup fee, no salary tiers and no country surcharge. That fee covers co-employment administration: payroll, statutory filings (PF, ESI, professional tax, TDS), benefits administration and HR compliance under Indian law. Unlike global platforms, we don't add a deposit or hidden surcharge, and we bill at the start of the month rather than locking up your cash. This post breaks down exactly what you pay, what's included, and how PEO cost compares to running it yourself.
A quick definition first: EOR makes the provider the sole legal employer; a PEO (Professional Employer Organization) is co-employment. US-style PEO doesn't exist in the same form under Indian law, so most India "PEO" offers are EOR or HR outsourcing underneath. SynkPay's PEO is a co-employment model that works alongside your existing Indian entity and handles the back office. If you don't have an Indian entity, what you actually need is an EOR — more on that distinction below.
What you pay for a PEO in India
Cost component | What it is | SynkPay |
|---|---|---|
PEO platform fee | Co-employment administration, per employee | $349/employee/month, flat |
Setup fee | One-time onboarding charge | None |
Salary deposit | Working capital held upfront | None — billed at start of month |
Employee salary | Paid to the employee | At cost (you fund it) |
Employer statutory | PF, ESI where applicable, professional tax; gratuity when it falls due | At cost (passed through); gratuity invoiced only on an eligible exit |
Background check | Optional, one-time | $300 per employee |
The platform fee is the only margin item. Salaries and statutory contributions are your actual costs, passed through transparently. For typical software salaries, recurring employer statutory costs (PF, PF admin and EDLI charges, and ESI where applicable) usually come to under 5% of gross salary, with the share falling as pay rises. Gratuity is separate: budget about 4.81% of Code wages for it each month, though SynkPay invoices it only when it falls due. When an employee becomes eligible and leaves, the gratuity is calculated under the Code on Social Security and invoiced to you at that point. Rates are set by EPFO contribution rates and ESIC. To model the statutory layer for a specific salary, use our India employee cost calculator.
What's included in the $349
Our flat PEO fee covers the full co-employment back office:
Payroll run monthly, on time, in compliance with Indian rules.
Statutory filings and contributions — Provident Fund (employer and employee each contribute 12%; from 17 September 2026 the wage ceiling for mandatory PF coverage is ₹25,000 a month), ESI where applicable, professional tax by state, and monthly TDS.
Benefits administration — statutory benefits and any supplementary benefits you offer.
HR compliance — compliant documentation, leave management, and ongoing support from a real person, not a ticket queue.
What's not in the $349: recruitment (a separate flat 12% of annual salary, only on a successful hire), background verification ($300 one-time), and standalone HR outsourcing or RPO. We never bundle those in or charge for them unless you ask. See our pricing for the full picture.
PEO vs EOR cost — which fee are you actually paying?
This is the most common confusion. The cost is similar, but the model differs:
PEO co-employs alongside your Indian entity. You need an entity already; SynkPay runs the back office. Fee: $349/employee/month.
EOR is the sole legal employer, so you need no entity at all. Fee: also $349/employee/month at SynkPay.
If you don't have an Indian entity — which is most foreign companies making their first India hires — you want the Employer of Record in India model, not a PEO. If you already have an entity and just want the administration handled, PEO services in India are the fit. The price is the same flat $349 either way; the difference is who is the legal employer.
How PEO cost compares to doing it in-house
Running India payroll and compliance yourself means a payroll vendor, a compliance consultant, and internal HR time — and the cost of getting a filing wrong. A flat $349/employee/month consolidates payroll, statutory filings, benefits and HR compliance into one predictable number, with the liability carried by a provider that has run a directly owned India entity since 2016. For a small India team, that's usually cheaper than the loaded cost of assembling the pieces yourself — and far less risky.
FAQ
How much does a PEO cost in India in 2026?
At SynkPay, a PEO costs a flat $349 per employee per month, with no setup fee, no salary tiers and no surcharge. That covers co-employment administration: payroll, statutory filings (PF, ESI, professional tax, TDS), benefits administration and HR compliance. Salaries and statutory contributions are passed through at cost on top of the fee. Other India PEO providers price per employee too, though some add deposits or surcharges.
Is a PEO cheaper than an EOR in India?
At SynkPay they cost the same — a flat $349/employee/month — because the underlying work is similar. The difference isn't price, it's structure: a PEO co-employs alongside your existing Indian entity, while an EOR is the legal employer so you need no entity. Choose based on whether you already have an India entity, not on cost.
What's included in SynkPay's PEO fee?
The $349/employee/month covers monthly payroll, all statutory filings and contributions (Provident Fund, ESI where applicable, professional tax, TDS), benefits administration, compliant HR documentation, leave management and human support. Recruitment (flat 12% of annual salary), background verification ($300 one-time) and standalone HR outsourcing or RPO are separate optional services, never bundled into the fee.
Does a PEO in India require a deposit?
At SynkPay, no. We invoice the monthly salary plus the PEO fee at the start of each month and pay employees at month-end — a standard payroll-in-advance cycle with no working capital locked away. Some global providers require a deposit or hold a month of salary upfront; we don't, so your cash stays in your account until it's due.
Do I need a PEO or an EOR for India?
If you already have a registered Indian entity and want the payroll, compliance and HR back office handled, you need a PEO. If you have no Indian entity and want to employ someone in India without setting one up, you need an EOR. Most foreign companies making their first India hires need an EOR. The fee is the same flat $349 at SynkPay either way.