How To Pay Foreign Contractors In India

June 7, 2021

Salary to foreign employees in India is given in the Indian rupee. The independent contractor payment schedule is defined by the payment terms and rights. The average Indian independent contractor salary is $46,576. Hiring an independent contractor in India depends on Provisions of Independent Contractor Agreement in India. Paying wages to an independent contractor working remotely from India a US company tax occurs through various remittance services of the country. These companies charge a specific amount for delivering Indian contractor pays and paying 1099 employees of India.

https://www.lifestylemirror.com/wp-content/uploads/2020/06/101608-768x509.jpg

Independent contractor payroll taxes for India:

Independent contractor payroll for India has a monthly payroll frequency with 12% employer taxes in Indian Rupee. Paying independent contractors in India is done through various remittance services such as Wise International Payment, PayPal, Instarem, etc. Paying independent contractors in cash also occurs in India to avoid payroll and the company’s taxes. Paying independent contractors hourly in India has also gained popularity because a large number of software developers working remotely from the country usually use the English language for dealings rather than their native language.

Paying overseas freelancers:

Freelancers or 1099 employees working overseas can be paid after the job is completed. However, some projects may demand 50% of the payment before starting the job to buy necessary supplies. Payments for large projects may be given divided into various portions at different times. This is also done through various remittance services.

Paying internationally without a fee:

There are several options to get paid internationally without a fee. For example, Google Pay provides an opportunity of transferring the amount from the client’s bank account to your account. The amount is directly transferred to your bank account by this method. On the other hand, payments via checks are also free but may take a longer duration for processing.

Income taxes for working remotely:

Employees working remotely from India or any state have to file and pay income taxes of states where the employee lives. Sometimes, tax laws demand to file two different tax return files for the two states. Whereas, working remotely from India on US payroll is not allowed until a candidate has US work visas such as L1 or H1B for a tenure of 1 to 5 months. After the visa extension, most freelancers and independent contractors work as software developers and IT professionals from India.

https://towlawyer.com/wp-content/uploads/2016/08/Paying-Independent-Contractors-1200x800-800x533.jpg

Average contractor and software developer salary:

India’s currency is the Indian rupee and the average salary of a software developer in India is 503,717 (INR) per year. However, the average monthly salary of an Indian employee is 31,900 (INR). The salary structure range from 8,080 (INR) being the lowest to 143,000 (INR) being the highest in general there. The contractors make almost 26,887 (INR) monthly. Sometimes, contractors are paid more because of more taxes contractors have to pay.

The exchange rate of USD to the Indian rupee is 72.91 (INR). Working as an independent contractor in India for US companies has become a common practice these days because the country has produced a large number of talented software developers. Indian independent contractor salary for a software developer is $48,918 on an average per year. Also, outsourcing trends have been increased because of lower costs and high returns. The independent contractors are fluent to speak English due to which language differences are also lowered.

Indian contractor upfront:

Paying 1099 employees, Indian contractors, and paying independent contractors hourly in India is a crucial task. The contractor pays of the country are usually sent through various remittance services who charge for sending Indian independent contractor salaries. The contractor upfront in India should be paid for a maximum of 33% of the total cost upfront. Also, independent contractor payroll for India includes self-employment taxes which are deducted from the contractor pays. 

https://erpnext.com/files/3ySEU9L.png

Following are some remittance services that work for paying 1099 employees, paying international clients, and paying independent contractors hourly in India.

Wise International Payment:

Wise International Payment is the least expensive method to send money to India because it supports 45+ state currencies. The Indian rupee is one of them. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. $13.01 (0.65% conversion fee). The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in India in one go. 

The company’s application has made International payments more convenient. However, the recipient can not track the transaction statuses.

OFX:

OFX helps to pay internationally without a fee. However, a mark-up is made on the exchange rates through which they earn money. The mark-up depends on the amount to transfer and the transfer history with OFX. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50

https://i.pinimg.com/736x/ad/4f/a8/ad4fa82f48004eecdafeeca950bfb714.jpg

The service provides a batch payment tool along with an easily accessible application through which transactions are made easier. The service is available 24 hours throughout the week and can set up recurring payments. However, the minimum transfer is $2000. Delivery occurs in 1-5 days.

PayPal:

PayPal is a renowned money transferring company to pay remote workers in India. The company fee is comparatively higher than other remittance services in India. However, the method is faster, reliable, and provides a high level of security. Because of its excess number of facilities, a large number of 1099 employees and overseas contractors are already using the service to get paid from international clients.

The transfer fee for $95 is $20 with a $75 exchange rate mark-up. The contractor pays can be delivered on the same day along with Mass Payment Tool for paying employee cash legally in India.

Instarem:

Indian contractor pays are also given through Instarem. Ait provides a cheap solution for paying independent contractor salaries because of the low exchange rate mark-up and 0.5% transaction fee. It does not allow card payments but the facilities of mobile application and mass payment are available.

https://www.thebalancesmb.com/thmb/epfm9y5V4OmHgeBDyczAtvlGBio=/300x200/filters:no_upscale():max_bytes(150000):strip_icc():saturation(0.2):brightness(10):contrast(5)/drip-dividend-renivestment-plan-5902b8ed5f9b5810dc4b1767.jpg

Direct deposit:

Paying independent contractors through direct deposit is another frequently used method. After choosing the bank checks are required to process Pay to the Order of drop-down arrow. After selecting the option for independent contractors transfer date is entered. The amount is entered and the Pay Online method is verified.

Xoom:

Xoom is a user-friendly service based in California for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending medium. Furthermore, the remittance cost is very low locked-in exchange rates. 

Money transfers can be tracked through the company’s application. $20 gift card is given to the referrals as well. However, complaints of delays and cancellation of the payments have also been observed.

Remitly:

Remitly is a cost-effective, and safe method of sending foreign independent contractor pays in India. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments. The company also provides promotional packages for new customers.

RIA:

RIA is considered one of the largest remittance networks that operate in almost 150 countries. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive. RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.

Western Union:

Western Union is another method for money transfers, bill orders, and bank transfers. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Xoom the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

https://www.pnb.com.ph/rcc/images/Remittance%20Page%20Banner.jpg

Spending $2 will help users to earn 1 point through the My WU program. Negative reviews have also been observed about delayed money transfers, poor customer support, and cancellation of transactions.

Transfast:

As the name indicates, Transfast offers faster transactions with competitive exchange rates. The transfer fee is impressively low along with a high degree of safety and security. The deposits occur instantly to major banks of India such as Axis, Kotak Mahindra, etc. It also offers a transfer of over $1000 without a fee if sent through a bank account. The application is available for both Android and IOS with good customer service.

Cash pickups are also available throughout the country along with promotional packages to the new customers. Instant bank transfers however have higher rates. 


How To Pay Foreign Contractors In India

Independent contractor payroll for India has a monthly payroll frequency with 12% employer taxes in Indian Rupee. Paying independent contractors in India is done through various remittance services such as Wise International Payment, PayPal, Instarem, etc.

find your workspace

Salary to foreign employees in India is given in the Indian rupee. The independent contractor payment schedule is defined by the payment terms and rights. The average Indian independent contractor salary is $46,576. Hiring an independent contractor in India depends on Provisions of Independent Contractor Agreement in India. Paying wages to an independent contractor working remotely from India a US company tax occurs through various remittance services of the country. These companies charge a specific amount for delivering Indian contractor pays and paying 1099 employees of India.

https://www.lifestylemirror.com/wp-content/uploads/2020/06/101608-768x509.jpg

Independent contractor payroll taxes for India:

Independent contractor payroll for India has a monthly payroll frequency with 12% employer taxes in Indian Rupee. Paying independent contractors in India is done through various remittance services such as Wise International Payment, PayPal, Instarem, etc. Paying independent contractors in cash also occurs in India to avoid payroll and the company’s taxes. Paying independent contractors hourly in India has also gained popularity because a large number of software developers working remotely from the country usually use the English language for dealings rather than their native language.

Paying overseas freelancers:

Freelancers or 1099 employees working overseas can be paid after the job is completed. However, some projects may demand 50% of the payment before starting the job to buy necessary supplies. Payments for large projects may be given divided into various portions at different times. This is also done through various remittance services.

Paying internationally without a fee:

There are several options to get paid internationally without a fee. For example, Google Pay provides an opportunity of transferring the amount from the client’s bank account to your account. The amount is directly transferred to your bank account by this method. On the other hand, payments via checks are also free but may take a longer duration for processing.

Income taxes for working remotely:

Employees working remotely from India or any state have to file and pay income taxes of states where the employee lives. Sometimes, tax laws demand to file two different tax return files for the two states. Whereas, working remotely from India on US payroll is not allowed until a candidate has US work visas such as L1 or H1B for a tenure of 1 to 5 months. After the visa extension, most freelancers and independent contractors work as software developers and IT professionals from India.

https://towlawyer.com/wp-content/uploads/2016/08/Paying-Independent-Contractors-1200x800-800x533.jpg

Average contractor and software developer salary:

India’s currency is the Indian rupee and the average salary of a software developer in India is 503,717 (INR) per year. However, the average monthly salary of an Indian employee is 31,900 (INR). The salary structure range from 8,080 (INR) being the lowest to 143,000 (INR) being the highest in general there. The contractors make almost 26,887 (INR) monthly. Sometimes, contractors are paid more because of more taxes contractors have to pay.

The exchange rate of USD to the Indian rupee is 72.91 (INR). Working as an independent contractor in India for US companies has become a common practice these days because the country has produced a large number of talented software developers. Indian independent contractor salary for a software developer is $48,918 on an average per year. Also, outsourcing trends have been increased because of lower costs and high returns. The independent contractors are fluent to speak English due to which language differences are also lowered.

Indian contractor upfront:

Paying 1099 employees, Indian contractors, and paying independent contractors hourly in India is a crucial task. The contractor pays of the country are usually sent through various remittance services who charge for sending Indian independent contractor salaries. The contractor upfront in India should be paid for a maximum of 33% of the total cost upfront. Also, independent contractor payroll for India includes self-employment taxes which are deducted from the contractor pays. 

https://erpnext.com/files/3ySEU9L.png

Following are some remittance services that work for paying 1099 employees, paying international clients, and paying independent contractors hourly in India.

Wise International Payment:

Wise International Payment is the least expensive method to send money to India because it supports 45+ state currencies. The Indian rupee is one of them. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. $13.01 (0.65% conversion fee). The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in India in one go. 

The company’s application has made International payments more convenient. However, the recipient can not track the transaction statuses.

OFX:

OFX helps to pay internationally without a fee. However, a mark-up is made on the exchange rates through which they earn money. The mark-up depends on the amount to transfer and the transfer history with OFX. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50

https://i.pinimg.com/736x/ad/4f/a8/ad4fa82f48004eecdafeeca950bfb714.jpg

The service provides a batch payment tool along with an easily accessible application through which transactions are made easier. The service is available 24 hours throughout the week and can set up recurring payments. However, the minimum transfer is $2000. Delivery occurs in 1-5 days.

PayPal:

PayPal is a renowned money transferring company to pay remote workers in India. The company fee is comparatively higher than other remittance services in India. However, the method is faster, reliable, and provides a high level of security. Because of its excess number of facilities, a large number of 1099 employees and overseas contractors are already using the service to get paid from international clients.

The transfer fee for $95 is $20 with a $75 exchange rate mark-up. The contractor pays can be delivered on the same day along with Mass Payment Tool for paying employee cash legally in India.

Instarem:

Indian contractor pays are also given through Instarem. Ait provides a cheap solution for paying independent contractor salaries because of the low exchange rate mark-up and 0.5% transaction fee. It does not allow card payments but the facilities of mobile application and mass payment are available.

https://www.thebalancesmb.com/thmb/epfm9y5V4OmHgeBDyczAtvlGBio=/300x200/filters:no_upscale():max_bytes(150000):strip_icc():saturation(0.2):brightness(10):contrast(5)/drip-dividend-renivestment-plan-5902b8ed5f9b5810dc4b1767.jpg

Direct deposit:

Paying independent contractors through direct deposit is another frequently used method. After choosing the bank checks are required to process Pay to the Order of drop-down arrow. After selecting the option for independent contractors transfer date is entered. The amount is entered and the Pay Online method is verified.

Xoom:

Xoom is a user-friendly service based in California for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending medium. Furthermore, the remittance cost is very low locked-in exchange rates. 

Money transfers can be tracked through the company’s application. $20 gift card is given to the referrals as well. However, complaints of delays and cancellation of the payments have also been observed.

Remitly:

Remitly is a cost-effective, and safe method of sending foreign independent contractor pays in India. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments. The company also provides promotional packages for new customers.

RIA:

RIA is considered one of the largest remittance networks that operate in almost 150 countries. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive. RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.

Western Union:

Western Union is another method for money transfers, bill orders, and bank transfers. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Xoom the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

https://www.pnb.com.ph/rcc/images/Remittance%20Page%20Banner.jpg

Spending $2 will help users to earn 1 point through the My WU program. Negative reviews have also been observed about delayed money transfers, poor customer support, and cancellation of transactions.

Transfast:

As the name indicates, Transfast offers faster transactions with competitive exchange rates. The transfer fee is impressively low along with a high degree of safety and security. The deposits occur instantly to major banks of India such as Axis, Kotak Mahindra, etc. It also offers a transfer of over $1000 without a fee if sent through a bank account. The application is available for both Android and IOS with good customer service.

Cash pickups are also available throughout the country along with promotional packages to the new customers. Instant bank transfers however have higher rates. 


If you have enough space at home, it is better to convert it into a separate work space. So the very first thing for you to work remotely is to find a workspace that is dedicated for you to work instead of sitting in the living room or bedroom. Find the best place at home that can serve as your work setup. Some workers that are new to remote work often struggle with the kids, pets, roommates, and some distractions at home.

To mitigate these challenges, the best way is to find a dedicated place for yourself where you could easily balance your work life and entertainment life. It is also important to focus on your core tasks and not end up giving extra time to complete them at the end of the day.

Try to avoid deciding on a workplace where people often walk around and congregate in the TV area and kitchen. One of the home office setup ideas is that you find a peaceful place where you have less distractions and sufficient privacy to attend your zoom meetings and calls without any background noise. Doesn't matter even if you have a very small space, you can even have the best desk setup for two monitors for you that increases your work productivity and isolation to focus.

Lighting that Increases your Work Productivity

It is always important to focus on the lighting of the room you are working in. You are supposed to spend some 8 to 9 hours in one light and that should be comfortable for your eyes and mind. Natural light is the best option to have when you are working from home. When it comes to increasing productivity at work, natural light helps you decrease drowsiness. If you don't have access to natural light, you can set your desk light to a natural one. This is your responsibility to have the best home office setup for productivity.

Keep Your
Workspace Clean
and Organized

Your workplace productivity is often affected due to the cluttered desk. One of the important things to remember to have the best desk setup for home office
is that the more organized your setup is, the more your work productivity will be.

When the desk is cluttered, it becomes very difficult to find the things and arrange them when you need them. And it becomes very difficult to have them when you need them immediately and you look here and there to get them, but it tends to waste so much of your time. To avoid this inconvenience, it is always better to organize your desk before you get started on the work.

It is one of the best tips to work from home.

A neat and clean workspace always motivates you to work without any distraction and makes access easy to each and everything that is present and
is actually required to be on your desk.

When a workspace is clean, it also helps you reduce anxiety and stress. It is therefore important to know how you can arrange your desk and declutter your workspace. The very first thing is that you reduce the use of paper. And instead of physical material like papers, you can use high-end home office productivity tools, such as Evernote or Google Drive, etc, to keep all your notes organized, as well as saved on the drive.

You can access the documents with one click. For this, you do not need to run here or there or waste your time finding the document you want immediately. All the documents whether it would be a Word file, a Google sheet, a spreadsheet, or any folder, you can easily access on your computer and make edits without any delay. This saves much of your time, as well as keeps your workspace neat and clean.

Secondly, always keep the things you need regularly while working. The stuff such as your mouse, your charger, your mobile phone, notepads, and headphones, etc. could be kept organized on your desk.

Colors and Greenery

Colors always play a vital role in freshening your mood. Similarly, when it comes to your work productivity, it is very important that you have the colors around you that could impact your mood and work productivity. Surround yourself with the greens and blues that could help you increase your productivity and help you work peacefully. We are always motivated towards work when the stuff around us calms us. It actually has a major role in giving you more hands at work. So make sure that your workspace is giving you the good vibes that can actually help you to work happily in a remote environment.

Place some green plants around your desk or table, put some photo frames and colorful pieces of art that you have made. Choose the best home office layout for productivity and make a setup in your house that serves the purpose of ultimate work culture and vibe. It will not only help you focus on core activities and tasks but also motivate the team members with your energy level. Make your work from home more exciting and productive with these simple yet affordable ideas.

Drink Plenty of Water

While working remotely, you are constantly sitting in one place and so it is important to keep yourself very hydrated. Even mild dehydration can affect your work. In men, it results in a decrease in cognitive performance whereas, in women, it degrades your mood. So make sure to java a water bottle with you all the time you are working and drink it often.

You have to find a bottle in which your water remains hot or cool accordingly and you do not have to visit the kitchen again and again to have it. Put one big bottle on your table to use throughout the day. You can also add some fruits or vegetables to it to make it a refreshing drink for yourself.

Focus on your Ergonomics

Remote workers usually spend more time and work for longer hours. Amid so, at least 6 to 9 hours are spent every day. During excessive work and sitting, it is important to focus on your ergonomics as well. Sitting for hours on a desk and table can affect the muscles of your back, neck, and shoulders so make sure that you keep yourself physically fit during remote work.

It is important for you to have a suitable setup. Choose the best chair and table for yourself where you are supposed to spend a significant amount of time on a daily basis. Choose a chair that has solid lumbar support and the desk is also according to your height. Your chair should be adjustable in height so that you could balance it according to your desk height.

Adjust your mouse and laptop in such a way that you could naturally see forward. Your neck should not bend while working, sit straight to keep your back straight all the time. You can go and choose the best work from home essentials. Not only this, you need to have some home office productivity tools that could help you work seamlessly and automatically in certain activities.

This article gives an answer to a very common question, how to make home office more productive? So set up a home office for remote work now by following the given guidelines.