A remote offer in US dollars looks huge when you multiply it by the exchange rate. What you actually keep depends on how you're paid, what the money costs to bring home, and how it's taxed where you live.
Here's how a dollar offer compares with a local job in India and in Australia, with worked examples.
Contractor or employer of record?
| Contractor | Employer of record (EOR) | |
|---|---|---|
| How you're paid | Invoices in US dollars, sent home monthly | A local salary in rupees or Australian dollars |
| Transfer costs | You pay them | The EOR does |
| India tax | 44ADA: half of receipts taxed | Salary slabs, like any job |
| Australia tax | Resident rates after costs | Resident rates, withheld each pay |
| PF or super | None | PF in India, 12% super in Australia |
| Paid leave | None, unless agreed | Yes |
India: worked examples
Example: US$36,000 as a contractor vs a ₹24 lakh CTC
At ₹88 to the dollar, less a 0.5% transfer fee, the offer arrives as ₹31,52,160.
Under 44ADA, half (₹15,76,080) is taxed: ₹1,21,068 in the new regime. Less ₹60,000 of work costs, you keep ₹29,71,092.
The ₹24 lakh local CTC leaves ₹20,67,516 after tax, PF and professional tax. The remote offer is about ₹9 lakh a year better, but you lose ₹43,200 of PF and paid leave.
Anything above about US$24,300 matches the local job.
Example: The same US$36,000 through an EOR
A ₹31,68,000 CTC is taxed as salary: ₹5,21,477 in the new regime.
Take-home: ₹26,00,923, about ₹3.7 lakh less than as a contractor, but with PF and paid leave.
A 3% bank markup instead of a 0.5% fee costs about ₹95,000 more a year on this offer. Compare providers with the USD to INR calculator.
Australia: worked examples
Example: US$80,000 as a contractor vs A$120,000 plus super
At A$1.54 to the dollar, less 0.5% fees, the offer arrives as A$122,580.
After A$3,000 of costs, income tax and Medicare: A$90,794 take-home.
The local job leaves A$91,080 and adds A$14,400 of super. They're almost level in cash, but the local job is A$14,400 a year ahead once super is counted.
Example: The same US$80,000 through an EOR
A$123,200 salary, plus A$14,784 super paid on top.
Take-home: A$93,256, A$2,176 more than the local job, with slightly more super.
If you'll invoice as a contractor, the contractor day rate calculator shows what to charge to match a salary with leave and super.
Before you accept
- Ask how you'll be paid. Contractor and EOR offers of the same dollar amount leave very different amounts.
- Check the exchange rate you'll really get. Bank markups of 2–4% are common; specialist providers charge well under 1%.
- Price in what you lose. Paid leave, PF or super, health cover and notice periods all have a value a local job includes.
- Mind the currency. If the rupee or Australian dollar strengthens, the same dollar salary is worth less at home.
How to use this calculator
- Choose India or Australia and enter the yearly offer in US dollars.
- Pick contractor or employer of record (EOR), and enter today's exchange rate.
- For contractor pay, enter your transfer fees and yearly work costs.
- Enter the local salary you're comparing it with.
FAQs
Is a remote contractor job better than an employer of record?
It usually leaves more cash in India, because 44ADA taxes only half of receipts. An EOR gives you PF or super, paid leave and employment protections, which contractors don't get.
Do I pay GST on foreign clients in India?
Exports of services are zero-rated. If you're registered for GST, file a letter of undertaking (LUT) each year so you don't have to charge it.
Do Australian contractors pay GST on overseas clients?
Services to clients outside Australia are usually GST-free, though you may still need to register once your turnover reaches A$75,000.
What exchange rate should I use?
Today's mid-market rate, the one you see on Google or XE. Then enter your provider's fee and markup separately so you can see what they cost.
Sources
- ClearTax: Section 44ADA presumptive tax
- ATO: Tax rates – Australian residents
- ATO: Registering for GST
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.