As many U.S. companies know all too well, H1-B visa delays are becoming a significant challenge, especially for businesses that rely on foreign talent. The majority of these delays affect Indian employees who are stuck in the lengthy visa approval process. While employers are left waiting for their employees to get clearance, the financial burden of paid leave can quickly pile up.
Paid leave is a great employee benefit, but when employees cannot work due to visa delays, U.S. employers are still responsible for paying their salaries without receiving any contribution to productivity. This creates a hidden cost that many companies are struggling to manage.
But what if there were an alternative? Instead of continuing to bear the cost of paid leave, U.S. employers can shift payroll to India, offering a cost-effective solution while still keeping employees engaged. Let’s take a look at the cost comparison between paying Indian employees for unproductive leave versus shifting payroll to India payroll solutions.
For U.S. employers with Indian employees waiting on H1-B visas, the situation is more complicated than typical paid leave. These employees aren’t taking vacation or sick days—they are in limbo, unable to work while still being paid. The cost of this paid leave goes beyond salary; it includes the financial strain of paying for unproductive time.
For example:
An Indian employee stuck waiting for their H1-B visa approval earns $60,000 per year.
If the employee takes 10 days of paid leave, the cost to the company is approximately $2,307—for every 10 days of leave, without any output.
With multiple employees in the same situation, the cost can quickly multiply. If the visa delay lasts for months, the costs could become unsustainable, especially for smaller businesses.
Paying employees during delays may hurt morale. Though employees are paid, their frustration grows as they cannot contribute to projects. This frustration can lead to disengagement. Disengaged employees are less likely to stay committed to the company, especially if delays drag on.
Instead of continuing to bear the high costs of paid leave while waiting for H1-B visa approvals, U.S. employers can shift payroll to India. By utilizing Employer of Record (EOR) services, companies can ensure their employees are still employed, engaged, and paid, but at a significantly lower cost.
Employer of Record (EOR) allows you to legally employ Indian employees in India, bypassing the need for expensive U.S.-based payroll while ensuring compliance with both U.S. and Indian labor laws. The employee can continue working remotely from India, maintaining their productivity without waiting for a visa approval.
This solution is a win-win for both the employer and the employee:
Let’s dive deeper into the numbers and see how shifting payroll to India via EOR can be more cost-effective than continuing to pay for paid leave.
Access to a Global Talent Pool
India has one of the largest pools of skilled professionals, especially in technology, customer service, and marketing. Shifting payroll to India helps U.S. employers save on costs and tap into a highly skilled workforce.
Flexibility and Scalability
India payroll solutions offer flexibility. Employers can scale their teams up or down easily, whether hiring one employee or an entire team. The EOR handles hiring, compliance, and payroll management, allowing companies to focus on strategic goals.
Reduced Compliance Risk
Employing workers in another country comes with compliance risks related to labor laws and taxes. EOR services manage compliance, ensuring that employees are paid according to Indian laws while U.S. tax regulations are met.
Financial Strain Over Time
If companies continue to pay for paid leave, they risk accumulating large costs. These costs grow when multiple employees are stuck in the visa process. Not exploring India payroll solutions means overlooking an opportunity to reduce overhead and streamline operations.
Employee Disengagement
If delays continue, employees may feel disconnected. The longer they are not working, the more likely they are to seek other opportunities. Shifting payroll to India lets employees remain engaged and productive while waiting for their visas.
When H1-B visa delays affect your team, the financial burden of paid leave can feel overwhelming. Shifting payroll to India via EOR services is a cost-effective solution that keeps your employees engaged and productive without the added expense of paying for unproductive leave.
At Team Management Services, we provide Employer of Record Services to help U.S. employers navigate the complexities of visa delays. Let us help you streamline your workforce management, save on costs, and continue to grow your business. By working with TMS, you can rest assured that your employees will remain connected to your company’s mission, and you’ll reduce unnecessary expenses associated with visa delays. To learn more, check out our blog on India Expansion EOR Services for U.S. Companies.
Usually no. If the employee is physically working from India, continuing U.S. payroll can create tax and compliance exposure for both the employer and the employee.
There’s no hard rule, but extended paid leave quickly becomes expensive and unsustainable, especially if delays stretch beyond a few months.
It can be done for a single employee. Companies often start with one role before scaling the model across teams.
With the right payroll or EOR partner, transitions can typically be completed within a few weeks, much faster than visa timelines.
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