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You can agree an India EOR salary in US dollars. The employee is still paid in Indian rupees, because Indian law allows nothing else, so the dollar figure is converted at a fixed rate that Omnivoo reviews every quarter.

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Why the rate is fixed

Section 15 of the Code on Wages 2019 requires wages to be paid in current coin, currency notes, cheque or bank credit. In practice that means rupees. Converting at the live market rate every month would change the employee’s rupee salary every payroll run, and every statutory figure moves with it: Provident Fund, ESI, Professional Tax, the TDS projection, the gratuity base and Form 16 are all rupee amounts. The employee’s CTC would never match the figure on their offer letter. So the rate is fixed once, at hire. The rupee CTC that comes out of it is what appears on the offer letter, on every payslip and in every filing.

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What the employee sees

The offer letter states the rupee CTC as the salary, with the dollar figure and the conversion rate alongside it as how that number was reached. On their profile, the employee sees:
  • what was agreed, in dollars
  • what they are paid each month, in rupees
  • the conversion rate
  • how much is currently held for them, waiting for the next review
  • an activity list showing every month the rate moved, what it was paid at against the market rate, and every top-up already paid
Nothing about the balance is hidden. The employee can check the total against the months behind it rather than taking the figure on trust.

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The quarterly top-up

Each quarter Omnivoo compares the fixed rate against the rate at which rupees were actually bought that quarter. Where the market rate has moved above the fixed rate, the difference is paid to the employee as a bonus on the next payroll run. It appears as its own line on the payslip. Where the market rate has moved below it, nothing is deducted. The employee keeps their full rupee salary for that month. The shortfall is carried and offset against the next quarter where the rate moves the other way.
The rate and the top-up are reviewed each quarter and may be revised. They are not a fixed entitlement.

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What the employer is billed

The employer’s invoice carries the agreed dollar figure for these employees, so the monthly cost does not move with the market. On a payroll run that mixes rupee-agreed and dollar-agreed employees, the invoice shows a separate line and a separate subtotal for each. The top-up itself is not billed again. It is paid out of the difference already sent in earlier months.

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Bonuses and equipment

Bonuses, employer contributions and equipment are entered and paid in rupees, whichever currency the salary was agreed in. Equipment is bought in India.

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Changing the rate

Omnivoo reviews the rate every quarter and can change it at any time. A change applies to new hires straight away. An existing employee’s rate is fixed at what their offer letter stated, so changing it is a salary revision with a new letter, never a silent change to their pay.