How to Hire Developers in India: 2026 Guide

Your business is growing, and you need the right tech talent to scale. The pool of developers in India is among the largest and most skilled engineering communities on the planet. The question isn’t whether or not to hire there. The question is how to do it right. This guide is your one-stop shop to learn how.

Why hire developers in India in 2026?

There are more than 6 million software developers in India. You can find candidates for every tech job you need, from frontend engineers who know React inside and out to backend developers who know microservices like the back of their hand.

In India, skilled developers earn much less than they do in the U.S. or Europe, where senior engineers can make US$140,000 to $180,000 or more a year. This gives companies that need to grow quickly without spending too much money a real advantage.

The infrastructure for education is very strong. Every year, India gives out 1.5 million degrees in engineering. Developer communities all over the world respect schools like the IITs and NITs. English is the default language in the workplace, which eliminates one of the biggest friction points in international collaboration.

Indian developers work all over the world. Most of them have worked with teams in the U.S., the U.K., or the EU. The remote work environment is well-established and has been battle-tested. There is already sound infrastructure for distributed teams, so you’re not trying something new like you would in emerging markets.

Where to find developers in India

India does not have an even distribution of tech talent. Some cities have become magnets for certain types of engineering skills, and knowing where to look can save you weeks of searching.

Top tech hubs

These are some of the hot spots to look out for:

• Bengaluru. Still the hotbed of Indian tech, Bengaluru is where you’ll find the most experienced startup veterans, product engineers, and full-stack developers.
• Hyderabad. This is where experts in cloud infrastructure and enterprise software work. In 2025, the city acquired 46% of the new Global Capability Centers (GCCs), passing Bengaluru.
• Pune. A growing SaaS and startup ecosystem with strong ties to Mumbai’s business network. Many of the developers here have worked on agile, product-driven teams before.
• Chennai. Recognized for its IT services companies and traditional engineering talent. You can find good backend developers and engineers who have worked with manufacturing technology.
• Delhi NCR. Many product companies and fintech startups hire Indian devs here. The talent pool is mostly made up of individuals who work on consumer-facing products and financial technology.

Sourcing channels

These sources are a great place to start:

• LinkedIn and developer communities. LinkedIn is still the most relevant professional online network for India’s dev community. Alternatively, you can find dev talent and see real code and technical contributions on GitHub and Stack Overflow.
• Local job portals. Naukri is the biggest player, but sites like CutShort and Instahyre only look for tech jobs and often find candidates faster.
• University recruiting. IITs and NITs have active placement cycles. You can get to know new graduates before they go on the open market by having direct relationships with these schools.
• Staffing firms and outsourcing providers. These firms handle volume hiring and vet candidates on your behalf. They work well if you need to scale a team quickly but add a markup to salaries.
• Employer of Record (EOR) platforms. Expanding business can invest in EOR services in India to hire employees directly without establishing a legal entity. Some platforms like Pebl provide comprehensive services like global compliance, payroll, and benefits administration.

Benchmark developer salaries in India

Salaries vary widely based on developer role, experience, and location. Here is what you can expect to pay in 2026 for talent in India’s major tech hubs.

• Junior Software Developer. INR 40,000–65,000/month (US$440–720)
• Mid-Level Full Stack Developer. INR 75,000–1,25,000/month (US$830–1,385)
• Senior Backend Engineer. INR 1,50,000–2,50,000/month (US$1,660–2,770)
• DevOps / Cloud Engineer. INR 90,000–1,60,000/month (US$1,000–1,770)
• AI / ML Engineer. INR 1,20,000–2,50,000/month (US$1,330–2,770)
• Frontend Developer (React/Vue specialist). INR 60,000–1,10,000/month (US$665–1,220)

These numbers are averages, but keep in mind that freelancers and contractors often have different prices. Additionally, top talent at product companies or funded startups can make considerably more, and their pay packages may include stock and equity options.

Legal and compliance considerations

There are rules in India that you have to follow when you hire someone. Getting the classification wrong or missing required contributions can lead to significant legal problems.

Employee vs contractor classification

India’s labor laws make it very clear that there is a difference between employees and contractors. If you incorrectly label an employee as a contractor (a common workaround to avoid employer obligations), you could face tax penalties, demands for back pay, and other penalties. The correct classification depends on things like control, exclusivity, and whether the person is an integral part of your business operations.

Mandatory employer obligations

If you hire talent in India, you have to pay into a number of government programs. Both the employer and the employee must put money into the Provident Fund (PF) toward the employee’s retirement. Employee State Insurance (ESI) pays for medical care for employees who make less than a certain amount.

Taxation is different in each state and is taken out of employees’ paychecks. You also need to follow the Shops and Establishments Act in each state, which says how much leave and notice you have to give.

Foreign employer requirements

There are two options for companies that don’t have an office in India. You can set up a legal entity, which means filling out incorporation papers, hiring local directors, and keeping up with compliance costs.

You could also work with an EOR, who would be the legal employer on paper but you would be in charge of the work. The EOR takes ownership over processing payroll, withholding taxes, managing benefits, and filing reports with the government. This lets you hire people quickly without having to learn about Indian business law yourself.

Hiring models for developers in India

The type of structure you choose will affect how quickly you can hire people, how much legal risk you face, and how much extra work you absorb. These are the three main ways that businesses go about hiring in India.

Hire via local entity

This route means establishing a local branch office or subsidiary in India. You have full control and a direct legal presence, but the costs of setting up are high, and the number of compliance obligations grows quickly. If you want to build a big team for a long time, this model makes sense.

Independent contractors

Contractors let you get started quickly without having to set up an entity or pay EOR fees. But India’s labor laws make it very easy to misclassify someone if the relationship looks like employment (regular hours, exclusive work, being part of your team). Authorities can change contractors’ status to employees and make them pay back taxes and benefits. This works for short-term jobs, but not very often for engineering jobs that are important.

Employer of Record

In this option, an EOR service in India becomes the legal employer, but you remain in control of the day-to-day work. An EOR like Pebl takes care of payroll, taxes, required benefits, and all other government filings. You don’t have to set up an entity at all, and you can hire people in days instead of months. This model is perfect for businesses that want to expand internationally but don’t have expertise with Indian labor law.

FAQs: Hiring developers in India

Here are answers to the most common questions companies ask when hiring technical talent in India.

How much does it cost to hire a developer in India?

The pay for full-stack developers at the mid-level level ranges from INR 75,000 to INR 125,000 per month (US$830–1,385). Senior backend engineers and AI/ML specialists make between INR 150,000 and INR 250,000 a month (US$1,660–2,770). These numbers only show the direct costs of salaries and do not include benefits administration or mandatory contributions.

Do I need a legal entity to hire developers in India?

No. An employer of record lets you hire workers legally without having to set up a branch office or subsidiary. You run the work, but the EOR is the legal employer. This gets rid of months of paperwork for incorporating, as well as ongoing compliance costs.

Can I pay Indian developers in USD?

According to Indian labor law, workers must be paid in INR. Contractors can take payments in USD, but this means that both sides have to follow rules about foreign exchange and taxes. Most businesses find it easier to pay in the local currency, no matter what type of business they are.

Are Indian developers experienced with global teams?

Yes. A lot of Indian engineers work with companies in the U.S., the U.K., and Europe on a regular basis. They are used to working together across time zones, communicating asynchronously, and having workflows that are spread out. Over the past few years, India’s infrastructure for remote work has improved substantially

What benefits are mandatory for employees in India?

Mandatory employee benefits in India include a Provident Fund (for retirement savings), Employee State Insurance (if salary thresholds apply), paid leave, public holidays, notice period requirements, and gratuity eligibility after five years of service. Professional tax also applies, but it is different in each state. These are the least that every employer must give.

Scale your engineering team with confidence

In 2026, India is still one of the best places in the world to hire developers. The talent is there, the infrastructure is strong, and the economy is booming.

When you’re ready to hire, Pebl makes it easy.

Our employer of record services enable companies to hire developers in India quickly and compliantly without establishing a legal entity. We handle payroll, benefits, and all regulatory compliance so you can focus on building your team and shipping products. When you’re ready to learn more, get in touch with us.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

© 2026 Pebl, LLC. All rights reserved.