Indian engineering culture went remote-first during 2020-2022 and largely stayed there for senior IC roles. Foreign employers that mandate return-to-office for India teams lose 30-50% of the candidate pool at offer stage. A clear, well-designed WFH policy is now table stakes for competitive recruiting.
Core policy elements
- Work location flexibility — any location in India (subject to PT registration in employee's state).
- Working hours — defined core hours for collaboration overlap, flex outside.
- Equipment provided — laptop, monitor stipend, internet stipend.
- Home office grant — one-time onboarding allowance.
- Quarterly off-site / in-person time — funded by company.
- Coworking access — optional, employer-funded subscription.
- Security — VPN, MDM, regular training.
- Data handling — what can be processed locally, what requires office / VDI.
- Conduct expectations — PoSH still applies remotely.
Equipment + stipends benchmark
| Item | Typical 2026 |
|---|---|
| Laptop | Company-issued MacBook Pro or equivalent. Refresh every 3 years. |
| External monitor stipend | ₹15,000-25,000 one-time |
| Home office furniture grant | ₹30,000-50,000 one-time |
| Internet stipend | ₹2,000-3,500 / month |
| Mobile phone allowance | ₹1,500-3,000 / month or one-time device every 2 years |
| Coworking subscription | ₹8,000-15,000 / month (optional) |
| Wellness reimbursement | ₹1,000-3,000 / month (optional) |
Policy templates + statutory compliance
FastLegal's HR consultant ships you a WFH policy template tailored to your state mix, equipment stipend levels and security requirements. All statutory boxes ticked (Shops Act notification, PoSH applicability to remote, PT in the right states).
Statutory considerations
- Shops & Establishments — notify the registered office address as work location; employee's home address as 'work-from-home' location.
- Professional Tax — applies in the state where the employer is registered, not necessarily where the employee sits (verify state).
- PoSH — applies to remote workplaces. Internal Committee handles complaints regardless of physical location.
- Working time — Factories Act / Shops Act limits apply; for IT establishments, these are flexible.
- Health & safety — employer obligation extends to home office (in theory). Provide ergonomic guidance.
- Maternity / leave — same statutory minimums regardless of work location.
Security expectations
- VPN mandatory for any access to production systems.
- MDM (Mobile Device Management) on company laptops.
- Secure WiFi at home — guidance on router setup, password complexity.
- Multi-factor authentication on all corporate accounts.
- Screen-lock on company laptops when away.
- No personal devices for production access (or BYOD with MDM enrollment).
- Annual security training; mandatory at onboarding.
Office availability — optional but useful
Even fully remote teams benefit from optional office presence:
- WeWork or coworking subscription in Bengaluru / Hyderabad / Pune — engineers who want office time have access.
- Quarterly all-team off-site or 'town' — in-person collaboration, planning sessions, social.
- Founder visits to India — quarterly or biannually.
- Optional team retreats — annual, funded.
Frequently asked questions
Can we require employees to work from a specific city?+
Yes if specified in the offer letter. Mid-employment relocation requirements are harder; offer letters generally specify a city, but most foreign employers don't enforce.
Do we need to register Shops Act in every state where remote employees live?+
Generally no — Shops Act applies to the establishment's location, not employee's home. PT may differ; verify per state.
What if an employee moves to a different state?+
Manageable — update payroll for PT change, update Shops Act notification if your provider requires. Continuous service unaffected.
Do we owe Indian PT if our remote employee is in a state we don't have a branch in?+
Typically PT follows the establishment, not the worker's residence. Confirm with your payroll provider — some states have started enforcing state-of-work PT.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.