(UNITED STATES) Indian technology professionals working in the United States on the H-1B visa are seeing a pay pattern that leans hard toward guaranteed income and keeps extras modest, according to a recent analysis of compensation structures. The core of their package is a base salary anchored to prevailing wage rules set by the U.S. Department of Labor, with limited bonuses and allowances making up smaller parts of the offer. For many assigned by Indian IT service firms, typical base ranges run from $65,000 to $90,000, and the base often represents 70% to 90% of total pay. That structure, while steady, offers less upside early in a worker’s U.S. career compared to peers at large American tech companies.
The model is built to be efficient and predictable. Most packages include allowances linked to housing, relocation, or local costs that add roughly 5% to 20% of total compensation. Some firms also keep a small “home country salary” piece—often under 10%—to support Indian statutory benefits like provident fund and gratuity. For newcomers, bonuses tend to be modest, usually under 10% of total pay, and may grow with seniority or a move to a U.S.-headquartered employer. Equity grants, like stock options or restricted stock units, are rare at Indian service companies but more common at major U.S. tech firms. According to analysis by VisaVerge.com, this lean structure focuses on steady wages over variable rewards, and it tends to raise the baseline while limiting the big spikes that come with high bonus or stock-heavy plans.
Why the Model Exists
This approach reflects a mix of cost management, compliance, and internal fairness.
- Cost control and competitiveness: Employers maintain steady margins by keeping compensation structured and predictable rather than bonus-heavy.
- Regulatory alignment: Offers tied to the prevailing wage support compliance with U.S. labor and immigration rules, shaping the range of the base salary.
- Internal equity: Limiting bonuses and equity can ease tension with domestic hires in similar roles.
- Risk management: Smaller variable pay reduces losses in downturns when revenue or stock prices fall.
Tying offers to the prevailing wage helps firms stay in line with U.S. rules and avoid pay gaps with domestic hires. The outcome for workers is a tradeoff: reliable income that supports bills and long-term credit decisions, but a flatter early pay curve without large bonuses or equity gains.
Policy Context and Pay Structure
At the heart of the package is the base salary. Key facts:
- Base often comprises 70%–90% of total compensation.
- For H-1B workers placed by Indian IT service companies, base pay commonly falls between $65,000 and $90,000.
- The base is tied to the job, level, and location, and set to comply with the prevailing wage framework. For official details, see the U.S. Department of Labor prevailing wage guidance: https://www.dol.gov/agencies/eta/foreign-labor/wages.
Beyond the base:
- Allowances: Typically add 5%–20% to compensation to cover relocation, housing, and local cost differences.
- Home-country payroll portion: Often under 10%, kept to maintain contributions for benefits such as provident fund and gratuity in India.
- Bonuses and incentives: Entry-level H-1B workers usually see bonuses under 10% of total pay; these may grow with experience or a move to a U.S. company.
- Equity: Rare at Indian service providers; more common at U.S.-headquartered tech firms.
The lean structure focuses on steady wages over variable rewards, raising the baseline while limiting big spikes from bonuses or stock.
Impact on Workers and Career Choices
The model produces both benefits and constraints for H-1B professionals:
Benefits
– Reliable monthly income helps with daily expenses and building a U.S. credit profile.
– Easier planning for loans (car, mortgage) because income is predictable.
– Predictable base helps families plan for education, remittances, or temporary dual-household costs during moves.
<
div style=”background: #fef2f2; border-left: 3px solid #dc2626; padding: 20px; margin: 32px 0; border-radius: 4px; box-shadow: 0 1px 3px rgba(0,0,0,0.05);”>
