Indian cos pay half the salaries of foreign cos; IT, finance workers most unhappy

The majority of Indian IT and financial sector workers are unhappy with their salary, a new survey by Monster.com said. It also found that Indian-owned companies typically pay much lower salaries than MNCs.

The IT sector turned out to be the highest paying industry in India, even  ahead of the financial services industry, which is usually the highest paying in most economies.

The average IT worker draws a salary of Rs 346.42 per hour. At 200 hours per month, that translates to a substantial Rs 69,284 per month. Yet, according to the survey, a full 57.4% of the professionals are unhappy at the salary, implying that they believe that they should be paid more.

The financial services sector, which includes banking, equities, financial research, insurance and so on were not far behind, earning 300.23 per hour or about Rs 60,000 per month on a median basis.

Unlike average, median numbers are not swayed much by the extremes at both ends, and therefore median numbers have been taken as representative for each category.

The third sector studied was manufacturing, rather organized manufacturing. Here, the median salary was Rs 254.04 per hour, or about Rs 50,800 per month. Even for a Master’s degree holder, the median hourly salary stands at Rs 261 per hour in manufacturing.

It should be noted that these numbers are from companies that are sophisticated enough to use the Internet for their recruitment, which means that these will probably include companies like auto manufacturers, makers of consumer goods and FMCG and so on.

“The IT & BFSI sectors have always been among the highly paid in India but it is surprising that over 50 percent of employees in both these sectors are least satisfied with their salaries,” said Sanjay Modi, Managing Director for India for Monster.

“In a scenario where salary becomes one of the key factors to attract and retain employees, it is important for companies to very closely analyse the correlation between salaries and employee satisfaction. Hence, the role of key talent becomes crucial and this research may be food for thought for organisations when they are benchmarking compensation and salaries”.

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The numbers also revealed the huge gap between what Indian managements paid their workers and what foreign-owned companies did.

For example, the median salary for fully-Indian owned IT companies is not even half that of fully-foreign owned companies. While fully-Indian companies paid Rs 261 per hour, foreign companies operating in India paid Rs 537 per hour.

Similar differences can be seen in the other two sectors also, with Indian managements paying less than half when compared to foreign-owned companies. (see chart)

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