Is my pay valid?

Is my pay valid?

I am an indian and i work remotely as a manager of marketing and product for a US based startup. I have team members to manage and i have a huge work load. My company hasn’t reached breakeven yet in terms of revenue. I realized that i am being paid $4-$5 per hour for my monthly salary. The last time I brought this up with my CEO, he sent me salary ranges in India. I dont think this is appropriate as i work for a US based company and work with US based clients. Plus my workload has been crazy. I am not aware of how HR departments work and we dont have one in our company. I want some advice from the members here. Is my hourly pay valid? If not, shall i ask for a raise? Or shall i ask for a raise after the company hits breakeven? Please advice

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41 Comments

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  1. Anonymous

    My guess is they found a way to save money by employing someone who will work cheaply. They are taking advantage of you. Then again they are also taking jobs from people whom they should offer to first.

  2. Anonymous

    In my experience when work is outsourced overseas to pay less than they would pay a U.S employee - you are not going to get far advocating to be paid equally to your U.S counterparts and quite frankly pay in the US will vary by region. You are correct that you are making much less than any US-based employee as our Federal Minimum Wage is $7.25 and some states have higher minimums. I think your best best is to advocate for fair pay where you live and based on your contribution. For example, if you are salaried but working more hours to contribute to tougher projects that would be a reason to advocate for a raise, if you are a strong performer they need to keep on account that alone should be strong leverage and since you are making less than your counterparts it may make it easier to find room in the budger.

  3. Anonymous

    The low pay rates and highly skilled/educated labor available in India are exactly why u.s. companies send work there. These companies can't of do not want to pay u s. based workers the going rate. So that's just economics

    Requesting a raise of 30 to 40% is not out of tge question if you are meeting or exceeding your goals and have proven your value over some time (like a year).

  4. Anonymous

    Maybe this information will help you decide:

    Minimum wage in the U.S. is $7.25/hour, but higher in some states. (It's around $10/hour where I live). $7.25 works out to about $1,100 per month or $15,080 per year. ($20,000 where I live).

    Where I live, the cheapest apartment is about $600, or 60 hours' of work time. For many apartments, you have to prove that your monthly income is at least 3 times the amount of rent, so that would be about $1,800 per month, so you'd have to make more than minimum wage to qualify.

    And yes, there are a lot of homeless people in the U.S. who have jobs. :-(

    Middle class average salary is at least 50,000 or $24/hour. The average price to buy a first home is $215,000, and you would need to make $55,000 to qualify for a house that costs $150,000. (so a couple that makes at least $13/hour each could buy a house of that price if they can find one).

  5. Anonymous

    I want to know where you live with rents and house prices so low.
    I'm in Maine which used to be reasonable (and still is WAY up north) but the costs in the largest city of Portland (still a small city) have become untenable for many and we have a big homeless/asylum seeker issue.

  6. Anonymous

    The national average for apartment rentals usually cites a 2-bedroom apartment. $600 here gets you a tiny efficiency.

  7. Anonymous

    Where I live (Harrisburg, PA), $600 gets you nothing. You can get a "tiny efficiency" for $800 plus all utilities -- maybe. I've seen efficiencies go for as much as $1,000 a month.

  8. Anonymous

    You are paid wages per India's pay scale. It matters not that the company is US based with US customers they are saving money by hiring offshore employees.

  9. Anonymous

    The only reason they are hiring from India is to pay lower wages. Sadly this practice has displaced many American workers.

  10. Anonymous

    Corporations are always seeking to exploit workers no matter where you live. Unionize.

  11. Anonymous

    This practice is considered standard, as it takes into account the local economy and ensures fair compensation based on geographic location. Just like how pay scales can vary between different US states such as Mississippi and New York City, the adjustment based on the local economy is also applied internationally.

    As a manager based in the US, I oversee a team of 45 employees in India. The salary range for the managers typically start around $5 per hour or $10,000 annually. For experienced individuals, the annual salary can go up to $14,000-$16,000. It's worth noting that the team has US counterparts in similar roles. 

  12. Anonymous

    Are you located in the US or are you located in India? And are you salaried or hourly?

    If you're in the US and you're salaried but working over 40 hrs/week, then unfortunately what you're seeing with what it comes out to for an hourly wage is standard. The best you can do is to keep your hours per week reasonable. If you're working 60+ hours every week because the company isn't staffing appropriate to the workload, things will continue that way until they see work not getting done and hire more people to pitch in.

    If you're located in India but working for a US company, your compensation will still be based on what market rates are in India - not in the US.

  13. Anonymous

    US-based companies hire workers from India so that they can pay India salary levels, which are lower than US salaries. If they are going to pay a US level salary then they'll hire a worker in the US, not India.

  14. misskelleyp

    Time to look for a new job, if you can. If you are working in the US on some sort of Visa, the US Government does have minimum salary amounts that you MUST be paid. The Indian salary ranges have zero bearing on US Salaries - our cost of living is completely different. They are taking advantage of you.

  15. Anonymous

    Except it sounds like she is located in India, and the applicable laws are based on where you sit your bootie, not where they write the paychecks.

  16. misskelleyp

    Yes, wasn't clear from the OPs post that they were actually working IN India. In which case, this is all ok (from a legal standpoint)

  17. Sharon M

    I managed an offshore team in India for over 15 years for a large U.S. retail company. We paid them $25- $28 USD per resource during that time.. I’m not quite sure what they paid their workers. Many companies take their cut off the rate being charged to the US company.

    I’ve been a consultant before during Y2K days and the company I worked for charged $116 per hour but only paid me $22.50 which was the norm.

    in New York State the minimum wage is $15 per hour now. But because you live in India it is based on Indian Standards regardless of the client being US based.

    I would starts looking for another job. The US company is definitely not paying your company $4-$5 per hour for you.

  18. Anonymous

    Sad but true, the reason companies hire overseas employees is to pay overseas salary.

    That being said, my go to move is to ask for a raise or a move to hourly wages so that my pay is commensurate with my workload at a minimum.

  19. Marion Badin Latour

    Hello, if you live in India, that's what companies are looking for. By outsourcing abroad, companies have the advantage of paying salaries at local rates.

    Check whether your rate is customary or not. If it isn't, it is in fact a form of exploitation.

    And never mind whether the company is profitable or not, every company has to pay salaries at least at market level, with more or less benefits and advantages.

  20. Anonymous

    Yes, you are being paid fairly. Although you work for a US company, you physically live and work in India, your salary is based on the market rate in India and cost of living in India.

    If you were allowed to move to another country (ie. the UK) and keep your current job, your salary would/should be changed to align then with the market rate and cost of living in the UK (which could be 4x your current salary in India).

    I think it’s worth it to ask for an increase, noting and pointing out how valuable you are and everything that you’re doing, but you cannot expect to be paid the “same” as a US based person.

  21. Celena Barton

    You are not. My company is 89% Indian and what they are paid is shockingly low. Granted, our company was founded in India so they try to pay more than fair. Our whole marketing team who supports the US is based in India with the exception of myself and two people who moved here. My team says they are happy with their pay but I still think it is low.

  22. Pamela Bendall

    You are being scammed. There are laws regarding this in the United States. Contact the US labor department.

  23. Anonymous

    If they don’t live in the US, our laws don’t always protect them.

  24. Erin Thomas, Career + Leadership Coach

    Most companies will pay salaries based on where you live - not where the company is located.

  25. Anonymous

    I’ve worked remotely within the states and my salary was based on where I lived and not where the actual company was located. And I was taxed accordingly depending on whether the state where I lived had state tax or not.

  26. Harley Raptor

    This is a very common tactic being spread in the US business world, to hire people who live outside the US with a "lower cost of living" and pay them pennies in comparison to a US employee. (To save money and keep more of the revenue, ugh.) I truly believe that companies should pay based on their headquarter location, not where the employee lives, otherwise it is exploitative. If they can't do that then they should work to change that before hiring employees.

    I don't think the pay you receive is valid, our minimum hourly wage is 7.25 with some states having higher minimum wage. I'd strongly encourage you to do some research on the salary you should get as if you were physically at the office and combine that with what value you are bringing to the company. I'd do it sooner rather than later, honestly it's not an employees job to ensure a company breaks even or makes a profit. And it's not your job to be paid poorly while they grow - they need to pay you for your work at fair market rates. And, as someone who does tax and financial work for many start up companies that operate at a loss, they're paying themselves very well and they're paying US employees decently, so they can afford it, even if the revenue doesn't seem to (or they are telling you the revenue can't). They get investors, loans, grants, etc to support their business and pay themselves.

    If they still refuse, I'd start looking for another job - but be warned that this will be very common practice in US companies and it might be tough to find a job that will pay you fairly. But I'd like to think they exist.

  27. Michelle S.

    Thank you for your intelligent, emotionally mature response. I am so over corporate America, it ruins everything.

  28. Masha Owens

    There is a reason why your company outsourced part of their operations to India (to cut costs). Otherwise they would have hired a US-based employee at the US market salary range. Is $4 per hour competitive where you live? If yes, then you are being compensated fairly (from the business perspective anyway).

  29. Anonymous

    Yes it's valid. You live in India. The work for the U.S. company would not be available to you otherwise. It's economics. Not personal.

  30. Michelle S.

    I think it’s not valid, even if she lives in India ??‍♀️

  31. Anonymous

    The work won't go off shore without a drastic economic incentive for companies. The u.s. labor force can accommodate the work but at too high a price.

  32. Michelle S.

    Wow, this started off reasonable, but then became so hateful. It looks like two different people wrote the top and then the bottom paragraph … this is a professional platform, and if you can’t abide by common courtesy, maybe you should go to Facebook.

  33. Michelle S.

    First of all, I’m sorry for any bigotry or hatred you’ve experienced. Just a couple of these comments has me feeling as though humanity doesn’t deserve anything nice.

    There are a lot of facets to this question. It’s difficult because, being from the US, a lot of us have no clue what it’s like to be in your situation at all. We don’t understand your kind of HR side, or how employment law works there, etc. but I think that you know the kind of job you do. You know how much it benefits the company, and I think that’s the way to bring it up, if you didn’t sign a contract, and you feel as though you should be making more, then, feel free to say something, I would just do it with the knowledge of all of us are fully expendable. It’s a corporation, but that’s why we have to work together to make it better.

  34. Anonymous

    While I don't think that's reasonable, companies off-shore jobs because it saves a lot of money. If wages in India go up, companies will find the next country/location that is willing to work for less. With that being said, it never hurts to ask for a raise.

  35. Anonymous

    Hateful post. Go away, troll!

  36. Anonymous

    It is a common tactic to out-source jobs outside the USA. Many times the cost of living is much less than the US, so, it is not as big a gap as it may look. It is also a common tactic EVERYWHERE to offer a management salaried position that face-value looks good. And, it may be good if it requires occasional need to give extra time to a project. It sounds like you are routinely, day in and day out, working many many hours. Get a written contract with escalation of pay written in it. If you do not have one now, consider it a learning experience. Ask in writing for more pay stating in a courteous professional way the hours you are working, you cannot continue without jeopardizing the quality of your work . Also ask for an assistant stating you want to see this company be successful and in order to do an outstanding job you need help. If you get a negative feedback, state you will need a review of this in another 30 -45 days (pick a number, be specific - start taking charge). In the future set limits - you control that to a big extent. Best wishes for keeping your health!

  37. Anonymous

    It would be best if you researched how much similar jobs in your country and cities pay instead of comparing how much the US would get paid. I live in Toronto, Canada. A similar position in the U.S. is higher. However, my country provides universal health care and other types of work-life balance that the U.S. cannot. I will never be a U.S. citizen cause I would not want to live there. Therefore I won't be comparing my salary and hoping it would be the same in US dollars. If you want to improve your salary drastically, you can also offer to move to the US or Canada on a work visa. You can make closer to US/Canada salary, but of course, you will have to pay much higher rent and daily standard of living. If you plan to immigrate to the U.S. at some point in the future, this is a good incentive to work hard, get less pay, but have the company to sponsor you to the country.If you are happy staying in India, then just use your local area salary as a comparison and ask for a raise or look for a different job in India.

  38. Anonymous

    It would naturally be reflected in your own country. I know that may not be a fun thing to hear but it makes sense. It's hard enough to get equal pay in your own country let alone feel that you're asking for a global comparative. good luck.

  39. Anonymous

    It is based on your work country. My job was just sent to India team because the cost of employment is less for employees in India than in US.

  40. Anonymous

    This type of underpaid out-sourcing disguised as offering great economic opportunities to talent abroad is a modern-day version of colonialism, and it's disgusting. Unfortunately, I don't see much in the comments that is helpful. If anything, there seems to be a lot of support for this common practice. It's gross and unethical.

  41. IntentionGirl299847

    Maybe research international law on pay? I am not up on that but you can look up the law for a US based company and what they are or are not allowed by law to do. It is greed plain and simple on their part to pay such crappy wages. What would the world be like if greedy companies held hiring fairs and no one came......It is worth a shot to check out the law.

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