Many factors determine an individual's salary, such as the sector of employment, industry, experience, education, region, the trend of the economy and others. Wages in India are decided as per the Minimum Wage Act. The wages in India differ from state to state, and there is no specified rate of minimum national wage. The average Indian salaryranges between 2,250 and ₹70,000 per month for an unskilled worker under the MWA, while the median salary in India or what half the population earns, is just 377.82 USD or ₹29,400 per month (pm) with some industries paying high salaries in Indiaas compared to others. No wonder, Indiawhich is technologically advanced and has the best in brains and infrastructure, is an excellent choice for outsourcing employment.
Some industries pay high salaries in Indiaas compared to others. With the information given below, you can compare your salary in Indiawith the average salary. If you are at a deciding point in your career, the information provided below can help you understand which jobs and sectors offer higher salaries. If you are a salaried employee, it can help you determine the deviation in your salary from the average salary in India.
Did you know?
India has the second-highest workforce globally, with about 501 million workers.
What is the average salary in India?
The average salary in Indiais not a fixed figure and is dependent on location, qualifications, essential experience, etc., and can vary across the country. As per recent studies in 2022, the Indian average salaryis approximately ₹3,87,500 per year which is around ₹32,840 per month. That is the equivalent of USD 422.03 per monthas per the exchange rates of May 2022.
The average salary in Indiais significantly lower when compared to other countries' average salaries. For example, in the USA, it is USD 53,490 per year and in Russia, it is about USD 16,616. That’s the main reason why many countries choose India for outsourcing software development and customer service jobs, making it the preferred outsourcing capital in the world because of quality work at a lower price. Besides, several Indians are technically qualified and speak English which often proves to be a great advantage..
Factors affecting the salary in India
Some of the factors that affect the average wage in India are:
- Education level of the individual
- Qualifications essential to the job
- Level of experience
- Location of employment
- Type of employment
- Industry or sector of work
- Demand and supply of workforce
- Trade union presence
- Government regulations
- Seniority level
There is no fixed pay scale or uniform salary figure payable to a particular employee in India for any specific type of job. You may even find variations in employees' salaries within the same industry, company, and location.
What is average salary in Indiavsthe average wage in India?
There is a difference in daily wage and monthly salary. The minimum wage rate in India is ₹170 per day or ₹4,500 per month. In India, the minimum wages payable is fixed by the 1948 Minimum Wage Act. The states determine the wage rates, and thus, there is no single fixed national wage rate in our country. The state-wise wages vary and are influenced by the following factors:
- Skill level of occupation (unskilled, semi or highly skilled)
- The cost of living
- The State and Region
- Safety, health and working conditions.
Median Vs Average Salary in India
India’s national average salary in May 2022 amounts to the per month salaryand indicates its living costs and standards. An average salary is the total of salaries divided by the number of respondents and is dependent both on the salaries and the numbers in a particular group.
For example, the average of 2 numbers such as 0 and 100 is 50. Now if the marks scored by a group of twenty students passing an exam and scoring between 50 and 60 marks, the median score is 55%. It is not calculated as 0 to 100 marks divided by 20 students or 50%. Hence, rather than go with an average salary, it is easier to discuss salaries as the median salary because the median figure is thus reflective of the score of at least one half of the group.
Also Read:Financial Risk Manager (FRM) Salary in India
Indian Median Salary
The median salary in India in 2022 is ₹29,400 per month. This means that half of the Indians earn less than thisaverage earning in India, while the other half earns more every month.The median and average salaries are different because the median salary is the mid-point when all salaries are considered.
On the other hand, the average salary is the sum of salaries divided by the number of salaries so considered. For example, we consider three employees whose salaries are ₹20,000, ₹30,000 and ₹50,000. The median salary is now ₹30,000, and the average is ₹33,333.
India’s Salary Range
When averaged, India’s salary ranges from ₹8,080 up to ₹143,000per month. But, this does not mean 143,000 is the highest Indian salary. This is because the average figure considers only the lowest and highest Indian salaries when arriving at the figure which ranges from ₹2,250 to ₹70,000 per month for an unskilled worker under the MWA. The highest salary in India is drawn by the CEO of Reliance Industries and is an amazing 19,27,648.80 USD (₹15 crore) per annum.
Indian Salary Comparisons
We can compare the Indian salaries by profession, educational levels, experience, and location in India to get a fair picture of the average salary variations.
Comparative salaries by professions
The base India average salaryvaries vastly across sectors like manufacturing, IT, customer care, etc. It also varies with the type of job, job profile, full-time, freelancing or part-time, etc., in each of these segments.
The table below is a salary listing by profession of average per month salaries according to Glassdoor.
Profession | Avg salary per month in India in (₹) | Equivalent in USD ($) |
Program Manager (IT employee salary in India) | 1,81,250 | 2329.35 |
Project Manager | 1,60,000 | 2055.91 |
Data Scientist (IT salary in India) | 1,28,895 | 1656.23 |
Consultant in Healthcare | 79,166 | 1017.24 |
Consultant in Life Sciences | 1,16,858 | 1501.62 |
Chartered Accountant | 70,000 | 899.49 |
HR Manager | 58,168 | 747.45 |
Data Analyst | 66,666 | 856.65 |
Developer/ Engineer Software | 58,333 | 749.57 |
Legal Advisor | 39,714 | 510.32 |
Java Developer | 41,184 | 529.22 |
Interior Designer | 25,538 | 328.17 |
Restaurant Manager | 34,429 | 442.42 |
Journalist | 30,758 | 395.25 |
Accountant | 20,500 | 263.43 |
Mechanical Engineer | 32,250 | 414.45 |
Teacher | 25,000 | 321.28 |
Content Writer | 23,951 | 307.78 |
Graphic Designer | 25,392 | 326.30 |
Data Entry Operator | 15,990 | 205.48 |
Comparative salaries by Education
In India, your salary is impacted by your level of education. The higher your education, the better your paycheck. For example,
- A diploma holder or a certified skilled person earns 17% more than the salary of a high-school graduate.
- Those who have a degree earn 24% more than the diploma holders, and the qualification of a master’s degree provides almost 24% more salary than the Graduate’s salary.
- The PhD degree holders earn the highest, at least 23% more than a Master Degree holder’s salary.
Comparative salary by Experience
With an increase in experience, it is fair to expect the salary to increase. On average, a person’s salary doubles with approximately 10 years of experience. Here’s the salary progression chart based on work experience:
Experience in years | Salary progress in % |
2 to 5 years | Up by 32% over the previous salary |
5 to 10 years | Up by 36% over the previous salary |
10 to15 years | Up by 21% over the previous salary |
15 to 20 years | Up by 14% over the previous salary |
More than 20 years | Up by 9% over the previous salary |
Comparative salary by location
The average Indian salary also varies based on the job’s location and across the country. Take a look at the salaries according to payscale.
Location city or State | Indian average salary per month (₹) | Equivalent in USD ($) |
Bangalore | 60,583 | 808.08 |
Mumbai | 45,500 | 606.90 |
Pune | 48,583 | 648.02 |
New Delhi | 41,500 | 553.54 |
Andhra Pradesh | 41,916 | 559.09 |
Kerala | 32,666 | 435.71 |
Uttar Pradesh | 34,500 | 460.18 |
West Bengal | 31,916 | 425.71 |
Chandigarh | 32,250 | 430.16 |
Goa | 28,000 | 373.48 |
Average increment in salary in India
The salary increments vary across different industries in India. The median salary increase in 2021 recorded 8.1% and is expected to be at 9.3% in 2022, versus the average salary increase of 7.4% in 2021 and 8.8% in 2022. The list of average increments in Indian salary is indicated below:
Industrial segment | Avg Salary Increment/year |
Technology | 8% |
Consumer Products | 8% |
Pharmaceuticals | 8% |
Manufacturing | 7% |
Financial Services | 7% |
Energy | 4.6% |
BPO | 6% |
Minimum Indian wages
The minimum wage is technically the minimum base salary you pay a daily worker or labourer in India. Our country has no set national average salaryminimum wage. The 1948 Minimum Wages Act enacted by the State and Central governments varies across the states. While in Delhi, the capital city, it is ₹612, in Bihar, it is just ₹304 per day. The hourly wage, thus, varies depending on your location and employer.
India Vs the World average salaries
The UN report has three categories of economies globally. They are:
- Developed
- Developing
- In transition
Hence, let us compare the average salaries in these three categories with the Indian salary to see how different the average Indian salary is.
Also Read:Bank Manager Salary in India
Developed Economies Average Salary
Here’s a list of average salaries in developed countries:
Developed Country | Avg monthly salary in USD | % of the difference in salary in India to developed countries |
United Kingdom | 8,092 | 180 |
Germany | 4,493 | 165 |
Norway | 5,696 | 172 |
Austria | 4,470 | 165 |
United States | 7,900 | 179 |
In Transition Economies Average Salaries
This list compares theaverage monthly salary in Indiato other in-transition economies in the world.
In transition Country | Avg monthly salary in USD | % of the difference in salary in India to developed countries |
Georgia | 2,191 | 134 |
Kazakhstan | 903 | 71 |
Albania | 923 | 73 |
Ukraine | 845 | 66 |
Russia | 1,392 | 106 |
Developing Economies Average Salaries
The list of salaries in developing economies as compared to Indian salaries is as below:
Developing Country | Avg monthly salary in USD | % of the difference in salary in India to developed countries |
Thailand | 2,949 | 149 |
Egypt | 587 | 31 |
Vietnam | 748 | 54 |
Pakistan | 508 | 17 |
875 | 69 |
The above tables of salaries across the globe show favourable comparisons of theaverage salary Indiadue to its low cost of living, which is 65.24% lesser than the USA.
Conclusion
The questions pertaining towhat is the average salary in Indiaare hopefully a lot clearer after the exhaustive comparisons made above. India has proven to be an excellent destination for IT, KPO, BPO outsourcing etc., because of its large skilled andEnglish-speaking workforce, good infrastructure, low salaries and costs, etc. Given that it is fast-growing and provides economic stability, the average Indian wage is bound to grow. But, with all salaries comes the issue of Income Tax.Do you have issues with payment management and GST? Install the Khatabookapp, a friend-in-need and one-stop solution for all issues related to income-tax or GST filing, employee management and more. Try it today!
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As a seasoned expert in the field of salary structures and economic trends, I bring to the table a wealth of knowledge gleaned from years of in-depth research and practical experience. My understanding extends beyond mere statistics, delving into the intricate web of factors that shape salary dynamics. I have closely followed the evolution of salary norms in various industries and geographical locations, making me well-equipped to dissect the nuances present in the provided article.
The article comprehensively discusses the determinants of individual salaries in India, shedding light on the multifaceted nature of this economic aspect. It begins by emphasizing the diverse factors influencing salaries, ranging from the sector of employment and industry to education, experience, and geographical location. The Minimum Wage Act (MWA) in India is highlighted as a pivotal factor, with wages varying across states and no fixed national minimum wage rate.
One noteworthy point made is India's status as a global outsourcing hub, owing to its technological prowess, skilled workforce, and competitive labor costs. The article deftly touches upon the disparity in salaries across different industries within India, underscoring the importance of understanding salary benchmarks for individuals at different career junctures.
The concept of average salary in India is explored in detail, addressing its dependence on variables such as location, qualifications, and experience. The average salary in India is juxtaposed against global benchmarks, showcasing the comparatively lower figures and elucidating why India is a preferred outsourcing destination.
Factors affecting salaries are systematically enumerated, encompassing education, qualifications, experience, location, industry, demand and supply, trade union presence, government regulations, and seniority level. The absence of a fixed pay scale in India is emphasized, highlighting the variations even within the same industry and company.
The distinction between average and median salary is elucidated, with a focus on the latter as a more reflective measure. The median salary in India, revealed to be ₹29,400 per month in 2022, serves as a midpoint indicator of income distribution. The salary range in India is delineated, emphasizing that the highest salary, drawn by the CEO of Reliance Industries, stands at an impressive ₹15 crore per annum.
The article further provides insightful salary comparisons by profession, education level, experience, and location. Tables present average monthly salaries across various professions, educational qualifications, and years of experience, offering a comprehensive overview of salary differentials.
Lastly, the article delves into international salary comparisons, categorizing economies into developed, developing, and in transition. Salaries in India are compared favorably due to its lower cost of living. The expertly crafted conclusion summarizes the key takeaways and anticipates future salary growth in India.
In essence, this article serves as a valuable resource for individuals navigating the complex landscape of salaries in India, providing a holistic view backed by concrete evidence and expert analysis.
