Indian H-1B tech employees in the United States often receive competitive compensation packages, primarily structured around a solid base salary, though bonuses might be modest. This approach allows Indian IT service providers to maintain a competitive edge by offering lower overall salaries compared to American companies, while still making these jobs financially attractive to Indian workers.
Base Salary and Average Compensation
The average H-1B salary has been on the rise, reaching approximately $119,769 in 2025. However, figures from ZipRecruiter suggest even higher averages, around $167,533 annually. Actual salaries can vary significantly based on experience, skills, and location. For instance, a software developer in San Francisco could see a salary range from approximately $102,000 per year for a Level 1 position to $177,000 per year for a Level 4 position.
Benefits and Perks
H-1B visa holders typically receive essential benefits, including health, dental, and vision insurance, often extending to cover family members. Stock options, however, are less common compared to direct US hires.
Allowances
The compensation structure for Indian IT professionals on H-1B visas often includes various allowances to help offset the costs of living and working in the U.S. These may include:
Recent Changes and Trends
The H-1B visa landscape is subject to policy changes that can impact compensation and job security. The Trump administration has recently announced a new proclamation imposing a $100,000 fee for H-1B petitions. This fee, effective September 21, 2025, applies to new petitions and those seeking re-entry into the U.S. The new fee will be paid by the companies hiring H-1B workers. Some are exempted from the fee, including those working in healthcare and engineering.
This move is intended to prioritize highly skilled workers and ensure they are not easily replaceable by American workers. The changes may lead to companies being more selective in sponsoring H-1B visas, potentially affecting the hiring of early-career professionals.
Impact on Indian IT Firms
Indian IT companies, which are major beneficiaries of the H-1B visa program, may face challenges due to increased costs. The new financial burden could disrupt business continuity for onshore projects and create uncertainty for businesses and professionals. Some companies are already advising employees to halt international travel.
Competitive Landscape
Despite potential challenges, Indian H-1B tech employees continue to enjoy competitive pay. While bonuses might be modest, the overall compensation, including base salary and benefits, remains attractive. The latest changes in visa policy could reshape the landscape, potentially leading to a greater focus on high-skilled, high-paid positions and influencing how IT companies manage their workforce.
Disclaimer: This article is based on the latest available information as of September 20, 2025, and is subject to change as policies evolve.
