India: Implementation of Host Salary Requirement For Employment Visa Applicants
August 19, 2022
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At a Glance
- Certain Indian consular posts (currently United States, Germany and Hong Kong SAR) now require foreign nationals applying for an Employment Visa to be paid by the host/visa sponsoring entity in India.
- Previously, foreign nationals’ salaries could have been paid either by the home or the host entity.
The situation
Certain Indian consular posts have confirmed that foreign nationals applying for Employment Visas to these consular posts must receive remuneration from the host entity sponsoring the visa in India. There has not been a formal notification released by the Indian Ministry of Home Affairs regarding this new requirement.
A closer look
- Affected consular posts. Affected consular posts currently include United States, Germany and Hong Kong SAR.
- Minimum salary. Previously consular officials would review if an applicant met the minimum salary threshold irrespective of the payroll arrangement (home or host). Consular posts will still review the minimum salary threshold but will now also confirm that the salary is being paid by the host entity (at affected consular posts). The minimum salary level is currently INR 16.25 Lakhs (INR 1,625,000) per year.
Impact
Employers should transfer foreign nationals who will be travelling to India under an Employment Visa to the host company payroll irrespective of the duration of their assignment.
Foreign employers will face an additional administrative burden to shift their employees from the home to host country payroll, especially for those moving via intra-company arrangements.
Background
Some Indian consulates have published a notification regarding this new requirement on their website. The Ministry of Home Affairs is soon expected to publish a notification about this change more widely.
Looking ahead
This new regulation is expected to be implemented across all consular posts in India in a phased manner. Fragomen India is tracking developments closely and will report further updates once available.
Fragomen in India is Fragomen Immigration Services India (Pvt) Ltd., operating exclusively as an immigration consultancy and not as a law firm in India. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
