India, Sept. 20 -- Indian tech employees on H-1B visas, especially those hired by Indian IT companies, are paid in the US using a salary structure that is complex but cost-effective. This wage model is based on an overwhelming base pay, moderate allowances, and restricted bonuses, and it nevertheless undercuts direct hiring by American companies.

The remuneration for Indian IT workers on H-1B visas in the US sometimes appears surprisingly generous. The compensation system is designed to be compact, even if overall wages is far greater than salaries in India, particularly with regard to what American IT companies pay their American counterparts.

The foundation of the package is the base wage in US dollars, which usually accounts for 70-9...