Canada suits U.S. companies that need developers working U.S. hours with close, day-to-day collaboration. India suits well-specified work where cost matters most and a time difference of 9.5 to 13.5 hours is manageable. In both countries, quality depends more on the team you hire and how the work is specified than on the country.
Published November 22, 2025 · Updated November 6, 2026
India Standard Time is UTC+5:30 all year, with no daylight saving time. India is 9.5 hours ahead of U.S. Eastern time in summer and 10.5 in winter, and 12.5 to 13.5 hours ahead of Pacific time. A U.S. morning is an Indian evening, so most collaboration runs asynchronously or relies on shifted hours.
Since India's four labour codes took effect on 21 November 2025, an employer contributes 12% of basic wages to the Employees' Provident Fund, pays gratuity of 15 days' wages per year of service (after five years, or one for fixed-term staff), caps normal hours at 48 a week and pays overtime at twice the normal rate.
What changes for a U.S. company building a software team in each country.
| Canada | India | |
|---|---|---|
| Time difference from the U.S. | None: Canada spans the same Pacific-to-Atlantic time zones as the U.S. (Newfoundland is half an hour ahead of Atlantic) | 9.5 to 10.5 hours ahead of U.S. Eastern time, and 12.5 to 13.5 ahead of Pacific; no daylight saving time |
| Employer contributions on top of salary | CPP (5.95%), CPP2 (4%) and EI (1.4 times the employee premium), each up to a yearly maximum: at most about C$6,200 per employee in 2026, outside Québec. Workers' compensation, and employer health tax in some provinces, are extra | 12% of basic wages to the Employees' Provident Fund, plus gratuity of 15 days' wages per year of service |
| Working hours and overtime | Overtime after 40 or 44 hours a week, depending on the province, usually at 1.5 times pay | 8 hours a day and 48 a week; overtime at least twice the normal rate |
| How teams are usually engaged | Employed through an employer of record or your own entity, or engaged as independent contractors | Usually through an outsourcing vendor; employing people directly needs an Indian entity or an employer of record |
| Legal system | Common law (civil law in Québec), with employment rules set mainly by each province | Common law, with four national labour codes in force since 21 November 2025 and rules set by each state |
| Working language | English, and French in Québec | English is widely used in business and technology |
Canadian figures use the CRA's 2026 rates. Indian figures follow the labour codes in force since 21 November 2025. Sources are listed at the end of this page.
Both countries have strong engineers and weak suppliers, so quality depends more on the team than the country. What changes the outcome is how clearly the work is specified, how much real-time review it needs, and whether the people building it are your employees or a vendor’s.
InfraDev's team reviews this page twice a year and when a rule it describes changes. General information, not legal or tax advice. How we review our guides · Report an error
InfraDev employs developers in Canada for U.S. companies. Tell us about the role and we will confirm the cost and timing on a short call.