PEO vs EOR in India — What's the Difference?
If you are a foreign company searching for "PEO India", it is important to understand that the terms PEO (Professional Employer Organisation) and EOR (Employer of Record) are used differently in India than in the US or UK.
In the United States, a PEO operates under a co-employment model where both the PEO and the client company share employer responsibilities. In India, this co-employment model is not legally recognised. What international companies actually need — and what XMS provides — is an Employer of Record (EOR) arrangement, where XMS is the sole legal employer of the India-based workers.
| Feature | PEO (US Model) | EOR India (XMS Model) |
|---|---|---|
| Legal employer | Shared (co-employment) | XMS only (sole employer) |
| India entity required? | Yes | No |
| Payroll & compliance | Shared | Fully handled by XMS |
| Onboarding time | Weeks to months | 5–7 working days |
| Who directs work? | Client company | Client company |
| Pricing | % of payroll (expensive) | From $75/employee/month |
What PEO Services XMS Provides in India
When international companies search for PEO services in India, they are typically looking for someone to handle these responsibilities:
Employment Contracts
XMS issues compliant Indian employment contracts covering all statutory requirements — appointment letters, offer letters, NDAs, and IP assignment clauses.
Payroll Processing
Monthly payroll with 99.9% accuracy. Salary disbursement in INR, payslip generation, investment declaration processing, and year-end Form 16 issuance.
Statutory Compliance
Provident Fund (PF), Employee State Insurance (ESI), Professional Tax, TDS deduction and filing, and all other statutory obligations — handled on time, every time.
HR Policy & Compliance
Leave management, employee handbook, POSH compliance (Prevention of Sexual Harassment), grievance procedures, and exit management — all handled under Indian law.
Background Verification
Pre-employment background checks, reference verification, and educational credential validation for all new hires.
Why Choose XMS as Your India PEO Partner
India-Focused
Unlike global PEO platforms that treat India as one of 150 countries, XMS operates exclusively in India. Our compliance team knows Indian labour law in practice, not just in theory.
Significantly Lower Cost
Global PEO platforms like Deel charge $299/month per employee. XMS starts at $75/month. For a 10-person India team, that saves $26,400 per year.
Recruitment + EOR Combined
XMS can find your India team AND employ them via EOR — one partner, one invoice, faster onboarding. No handoff between recruitment agency and PEO provider.
9 Years, 10,000+ Placements
Founded 2017. 100+ global clients. 10,000+ placements. Zero statutory violations in our operating history. Track record matters in HR compliance.
XMS vs Global PEO Platforms
| XMS India | Deel / Remote / Rippling | |
|---|---|---|
| Pricing | From $75/month | $299–$599/month |
| India specialisation | 100% India focused | 1 of 150+ countries |
| Recruitment included | Yes — find + employ | No |
| Onboarding time | 5–7 days | 2–4 weeks |
| Dedicated India team | Yes — Bangalore based | Remote/global support |
Ready to Set Up Your India Team?
XMS provides PEO/EOR services for international companies hiring in India. From $75/month. Onboarding in 5–7 days. Talk to us today.