Base-heavy, lean perks: Inside the salary structure of Indian H-1B tech workers in the US

Indian tech workers on H-1B visas, particularly those deployed by Indian IT giants, receive U.S. salaries structured around a dominant base pay, modest allowances, and limited bonuses—creating a layered but cost-contained compensation model that still undercuts direct hires by American firms.

For Indian IT professionals working in the U.S. on H-1B visas, the paycheck often looks deceptively robust. While total compensation is significantly higher than salaries in India, the structure is built to be lean—especially when compared to what U.S. tech firms pay their American counterparts.

Base salary in U.S. dollars forms the backbone, typically making up 70–90% of the total package. This component is dictated by the U.S. Department of Labor’s prevailing wage levels, tied to role, experience, and region. For Indian service firms like Infosys and TCS, this base usually falls in the $65,000–$90,000 range.

Some firms continue paying a small Indian salary back home, often less than 10% of the total, to maintain statutory benefits like provident fund and gratuity. This retained salary ensures continuity for employees who might return to India.

On top of base pay, onsite allowances—such as housing support, cost-of-living adjustments, and a one-time relocation payment—make up 5–20% of compensation. These vary by location and internal policy but rarely match U.S. standards for similar roles.

Bonuses and incentives are minimal for entry-level H-1Bs, often under 10% of salary. While these grow with seniority in some firms, they're still modest compared to what U.S. tech giants offer. Companies like Alphabet, Microsoft, and Amazon pay H-1B hires $120,000–$200,000 base, often with additional equity and substantial bonuses.

Benefits are basic but required, including health, dental, and vision insurance—usually covering family members. Stock options are rare in Indian service companies but more common in direct U.S. hires.

The design is intentional: Indian IT service providers maintain a competitive edge by offering lower wages than U.S. firms, while still making H-1B stints financially attractive for Indian employees. The result is a streamlined, predictable salary model that supports offshoring profits and onsite cost control.