PEO / Co-employment
PEO services in India
For companies that already have an Indian entity. We run payroll, statutory filings, HR documentation and the full employee lifecycle under your banner, while you retain control.
PEO or EOR: who is
the legal employer
The distinction between the two models is a single question: whose name is on the employment contract.
Under an Employer of Record arrangement, we are the legal employer. Your team is employed by Aether Blue Associates, and you need no Indian entity at all. Under a PEO arrangement, your Indian entity remains the legal employer. Your people are your employees, on your contracts, on your payroll — and we administer that payroll and the statutory compliance underneath it.
So the PEO model is the right one when you already have the entity and do not want to build an HR and compliance function inside it. The EOR model is the right one when you do not have an entity and would rather not create one yet.
What running the lifecycle means
The employee lifecycle in India generates documentation at every stage, and most of it has a statutory deadline attached. Onboarding requires an appointment letter and enrollment in Provident Fund and ESI. Every month brings payroll, deductions, deposits and returns. Leave has to be recorded in registers, not spreadsheets. Exit requires a final settlement, gratuity where it is due, leave encashment and statutory exit filings.
We handle that end to end under your entity’s banner. Your employees see your company; the administration behind it is ours.
The compliance calendar,
registers and MIS
Every obligation your entity carries sits on a live compliance calendar with its statutory due date — TDS deposits, the EPF ECR, ESI contributions, Professional Tax by state, and the periodic returns that follow them. Filings are made on time and the proof is shared with you monthly.
Underneath the calendar sit the registers: leave, attendance, wages and the labour-law registers your state requires. These are the documents that matter in an inspection or an audit, and they are the ones informal arrangements are missing when it counts.
On top of it sits reporting. Your finance team receives monthly MIS and payroll registers they can reconcile — itemized, auditable on any day you choose to look, not summarized after the fact.
Structured on the
new Labour Codes
India’s four Labour Codes came into force on 21 November 2025, replacing 29 earlier laws. If your Indian entity’s salary structures predate them, they were almost certainly built on a narrower wage definition than the one now in force.
We rebuild them on the current basis: Basic + DA at 50% or more of total pay, with statutory contributions computed on that wage base, and fixed-term gratuity eligibility provisioned from year one. Central and state rules are still being notified, and we track those notifications as they are issued so your employment terms never fall behind the law.
Pricing
Contact us
for pricing
A per-employee monthly retainer covering full HR and statutory administration under your entity's banner, quoted against your headcount and locations.
Scope
What's included
Payroll processing
Monthly run, payslips and registers under your entity
Included
Statutory filings
EPF, ESI, TDS and Professional Tax, filed with proofs
Included
Compliance calendar
Live, state-wise, with monthly filing proof
Included
HR documentation
Appointment letters, policies and labour-law registers
Included
Lifecycle admin
Onboarding through full-and-final settlement
Included
Monthly MIS
Reporting your finance team can reconcile
Included
Fit
Who it's for
Companies with an Indian subsidiary but no HR or compliance function in it
Entities whose salary structures predate the new Labour Codes
Finance teams that want auditable registers rather than assurances
Groups consolidating payroll administration across Indian locations
Are you compliant with India's new Labour Codes?
Yes. India's four Labour Codes came into force on 21 November 2025, replacing 29 earlier laws. All our employment contracts and salary structures follow the new uniform wage definition (Basic + DA at ≥ 50% of pay), statutory contributions are computed on the new wage base, fixed-term gratuity eligibility is provisioned from year one, and we track central and state rule notifications as they are issued — so our clients never carry transition risk.
Can you employ people anywhere in India?
Yes — we employ across all Indian states and major cities. State-specific items (Professional Tax schedules, Shops & Establishments rules, state holidays, and state Labour Code rules) are applied per each employee's work location, and our compliance calendar tracks them state-wise.
Are the employees properly covered under Indian law?
Yes — written contracts, Provident Fund, ESI where applicable, TDS on salaries, and all applicable labour-law protections.
How is our data protected?
Employee and client data are handled in line with India's Digital Personal Data Protection Act, 2023: collected only for employment purposes, access-restricted to the Directors and the staff who process payroll, never sold or shared with third parties, and covered by confidentiality undertakings. Payroll and accounting run on established cloud platforms (Zoho) with access controls, and we sign data-protection terms in our MSA where clients require them.
Further reading
Related guides
Guide
India's new Labour Codes, explained for US employers
Learn more ➞
Guide
The 50% wage rule: how India's new wage definition changes your payroll math
Learn more ➞