Hiring contractors in India is one of the smartest moves for US startups and agencies. Indian developers, designers, and virtual assistants are highly skilled and cost-effective. But how do you actually pay them?
This guide covers every method — from bank wires to modern platforms — so you can choose the cheapest and most reliable option.
Why US Companies Hire Indian Contractors
- Cost savings: Skilled developers at $25–$60/hr vs $100–$200/hr in the US
- Talent pool: India produces 1.5 million+ engineering graduates per year
- Time zone overlap: 4–6 hours overlap with US East Coast
- English proficiency: India has the second-largest English-speaking population globally
Method 1: Bank Wire Transfer — Expensive & Slow
The traditional approach: send a SWIFT wire from your US bank to your contractor's Indian bank account.
- Fees: $30–$50 per wire (sender side) + $5–$15 intermediary bank fees
- Exchange rate: Banks mark up rates by 1.5–3%
- Speed: 3–5 business days
- Total cost per $3,000 payment: ~$75–$140
For monthly payments to multiple contractors, wire fees add up fast. A team of 5 contractors costs $150–$250/month just in wire fees.
Method 2: PayPal / Payoneer — Easy but Costly
PayPal charges 2–4.5% for international transfers, and your contractor loses another 2–3% on currency conversion. Payoneer is slightly better at 1–2% markup.
Real cost for a $3,000 payment: $60–$135 in fees + markup (PayPal) or $30–$60 (Payoneer).
Method 3: Deel / Remote — Compliance-Heavy Platforms
Platforms like Deel and Remote handle compliance, contracts, and payments in one package. They're great for managing contractors formally, but they're expensive:
- Deel: $49/contractor/month
- Remote: $29–$49/contractor/month
For 5 contractors, that's $245/month ($2,940/year) on Deel — before payment processing fees.
Best for: Companies that need full compliance management and formal contractor agreements.
Method 4: Pym Business — $0 Fees, Bulk CSV Payroll
Pym Business is built specifically for paying Indian contractors:
- $0 platform fee — no per-contractor monthly charges
- 1% FX markup — significantly lower than banks and PayPal
- CSV bulk upload — pay up to 100 contractors in one batch
- Scheduled payroll — set up recurring biweekly or monthly payments
- Fund with USDT — for crypto-native companies, $0 funding fees
- Contractor tracking — each recipient gets a payment notification
Total cost for 5 contractors × $3,000 each: $150/month (1% on $15,000) vs $2,940/year on Deel.
Comparison: Paying $3,000/Month to 5 Indian Contractors
| Method | Monthly Cost | Annual Cost |
|---|---|---|
| Bank Wire ($40/wire + 2%) | $500 | $6,000 |
| PayPal (3% + fee) | $475 | $5,700 |
| Payoneer (1.5%) | $225 | $2,700 |
| Deel ($49/contractor) | $245 + fees | $2,940+ |
| Pym Business (1%) | $150 | $1,800 |
Tax & Compliance: What You Need
When paying international contractors:
- W-8BEN form: Have each contractor fill out IRS Form W-8BEN to certify their non-US status (no US tax withholding required)
- Written agreement: A simple contractor agreement defining scope, rate, and payment terms
- 1099 reporting: Generally not required for foreign contractors, but keep records
- No employment benefits: Contractors are not employees — no PF, insurance, or leave obligations from the US side
Get Started
Create a free Pym account, switch to Business mode, and pay your Indian team today. Upload a CSV or add recipients one by one. Fund with bank transfer or USDT.