Salaries in India: What to expect?
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Although the average salaries in India are still a lot lower than in Europe, the average monthly salary has risen rapidly in recent years. In 2016, the average salary was ₹19,492 (€221), but it has now almost doubled to ₹31,900 (€362). This sounds very advantageous, but this average also includes the very low salaries of the many Indian agricultural workers. As a foreign company, you cannot therefore rely on this average. Depending on the region where you establish yourself, the average salary will be higher or lower. Foreign companies often look for employees around the big cities, and those salaries are much higher. For example, in Mumbai, the average salary is ₹66,900 (€760), while in Chandigargh, a much smaller city, it is only ₹43,900 (€499).
Average salary in India by experience, education, and job title
A candidate’s education and experience obviously have an impact on their salary. In general, Indian employees with two to five years of experience earn an average of 32% more than freshers and juniors across all sectors. Professionals with more than five years of experience earn an average of 36% more than employees with five years or less of experience. Once they reach ten years in an industry, their salary increases by 21%, and by another 14% if they reach 15 years of experience or more. It’s not just the years of experience that count, but also changing jobs. Every time someone changes jobs, their salary increases by around 30-35%. An important point to consider in the recruitment process.
Of course, there are several aspects that play a role in determining the salary, such as education, position and location. In India, employees with a basic education earn an average of 17% more than colleagues who have only reached secondary school level. A Bachelor’s degree increases the salary by an average of 24% and a Master’s degree by another 29%. There is also a big difference between the different regions. In the big cities, the cost of living is much higher than in more rural areas. The salaries are of course adjusted accordingly.
To get an idea of the average salaries of different positions and sectors, we have listed a number of examples. Please note that these are only examples and the experience, education, sector and location of the suitable candidate are not included in the examples below. Would you like to gain more insight into the possible wage costs for your Indian entity? Then contact our experts, they can advise you on realistic salary proposals based on the sector in which you are active, your location and your specific wishes.
Prevent turnover with a competitive salary offer
Many companies in India struggle with high staff turnover. In order to attract and retain talented employees, it is essential that your salary is equal to or higher than the average salary for that position in India. You must comply with the rules of the Indian employment arena. Legal assistance in drawing up employment contracts and employment conditions is therefore not an unnecessary luxury. It is also advisable to seek practical advice on best practices and methods, so that the policy is not only legally compliant, but also HR-friendly. IndiaConnected is happy to support you in this process with, among other things, the recruitment and selection process and contract negotiations.
