Best Way To Hire Employees From India In 2021

February 3, 2021

Thanks to technology and the change in hiring trends, working remotely from India for a US company is no longer a dream. Companies from the US and all around the world are now interested in finding the best way to hire new employees from India. The process of how to outsource work to India may seem to be extremely complex, but once you get familiar with the process and are aware of the regulations and legal aspects involved, you will be able to hire employees working from India on US payroll. You can choose between three different ways of hiring Indian employees. You may register your company as a local entity in India, find a couple of the top overseas contracting companies to help you in this regard, or make use of job boards and freelancing websites to be able to acquire an employee from India. 

Thankfully, the world has emerged into a global village. Therefore, businesses, companies, and employers are now able to hire talent from all around the world. One such popular country that is known for skilled and hardworking employees in India. From labor to engineers, from onsite positions to remote workers, you can find amazing talent from India and add them to your team of experts. 

However, before moving forward with the hiring, it is very important to know how to hire someone in India. Which currency will be used to compensate the employee? How to manage taxes and duties? What are some of the regulations and legal aspects that have to be considered? These are some of the questions that may come to your mind when you wish to find employees in India

This article will serve as a step by step guide that will walk you through the process and share everything that you need to know about the process. We will also let you know of the main regulations and employment rules that you need to be aware of so that you can follow the best practices in talent acquisition in India. 

Why Hire Indian Employees? 

The biggest perk associated with hiring independent contractors in India is undoubtedly the cost. A worker from India will take the job for a fraction of the cost as compared to a worker in the United States that possesses the same skill set and experience level. 

Another reason why US companies hire Indian employees is because of the diversity of talent. You name it and you will find it. No matter what the job is, from laborious tasks to manufacturing, designing, teaching, tech, and what not - you will surely find employees from India that are a perfect match according to your job requirements. Therefore, it is needless to say that the latest trends in recruitment in India are on the rise since finding talented and experienced workers in India is extremely easy. 

Last but not least, Indians are highly educated. The workers are fluent in English and are extremely tech-savvy. Therefore, having them on board is not very hard or complex. These workers require minimal to no training as they are already quite good at their jobs. 

Hiring Employees From India - Background Information 

The hiring of employees from India is not a tedious task. You can use freelancing platforms and job boards to announce the vacancy, ask a company to help you or even register your company locally in India. That aspect is quite simple, but before you go ahead with the process, you also need to be aware of some basic information regarding the background of the country you wish to hire from. 


India is amongst the list of countries with rapid population growth. They are estimated to have a population of around 1.366 billions. With an average literacy rate of 74 percent, it is obvious that you will find a lot of skilled workers and educated potential employees hailing from India. There is also a decent number of universities, colleges and other institutions in the country that contributes to an educated population. 


The average salary of the employees from India varies depending on the job and the type of the contract. On average, a software engineer can make around $8000 per annum. Paypal, Payoneer and other money transfer services are easily available in India, therefore, the transfer of money is not an issue.

Gratuity is a benefit provided to retiring employees in India. An employee that has been working for the company for the past five or more years is eligible for the gratuity payment. An amount equal to the fifteen days worth of salary per year is calculated and summed up. This amount is then handed over to the employee upon retirement as an expression of thank you for the employee’s services over the years. 

Companies with more than twenty employees are bound to pay bonuses to their employees within the fiscal year. The amount of the bonus varies and is determined based on the employee’s performance, company profit, and the time period for which the employee has been serving the company. But it is important to mention that the bonuses cannot be added up and have to be paid within the fiscal year. 

Time zone:

The GMT +5:30 time zone is followed in India. Therefore, there is a drastic difference in the time zones of the US and India. Therefore, it is recommended that companies hiring employees from India offer flexible working timings so that the work can be managed with ease at both ends. However, many employees working from India even try adjusting to the US time zone so they can be available according to the working hours of the company in the US. 

Working Culture:

You will find a large number of Indian employees working in almost all leading companies around the world. This is because Indian people are extremely hard working. Typically, the employees have to work an eight hour per day working schedule. 

Moreover, you will find a range of employees from India. From teacher to engineers, doctors, lawyers, administrators - you can hire employees for a vast majority of jobs with ease. The employees are dedicated, remain loyal to the company they are working for and put in their best efforts to ensure that they can do their jobs properly.