Education sector least paid in India – INR 205.29/hr in 3 yrs - February 29, 2016

Education sector least paid in India – INR 205.29/hr in 3 yrs - News Press Release March 1st, 2016

Education sector least paid in India – INR 205.29/hr in 3 yrs

  • Men continue to earn more than women; overall gender pay gap in India at 27%
  • Highest gender pay gap in Manufacturing and IT, at 34.9% and 34%

 

Level of education influences salary

 

  • Level of education in India one of the major factors influencing salary

 

  • Employees with a bachelor’s degree or equivalent earn on average 86% more than employees with only secondary education.

 

  • It pays off even more when one has a master’s degree or equivalent (such graduates earn 35% more than bachelor’s graduates and 151% more than secondary education employees)

 

New Delhi, March 1st, 2016– Monster India (www.monsterindia.com), one of the leading online career and recruitment solutions providers in the country released the second edition of the ‘Monster Salary Index’ (MSI). This year MSI analysed the salary trends across eight key sectors for a period of two years and 9 months, starting Jan 2013 till Q3 2015. Last month, Monster had released sectoral reports on salaries for the manufacturing, IT & BFSI sectors.

Amongst all the sectors analysed in this report, Education and research continues to be the least paid sector in India, as the largest salary decrease can be spotted in this sector. The median salary fell by ₹ 12.6 since 2013 reaching ₹ 225.2 in 2013, ₹ 174.5 in 2014 and ₹ 212.6 in Q1-Q3/2015.

While on one hand education is the least paid sector, the level of education in India however is observed to be one of the major factors influencing salary in India. Employees with a bachelor’s degree or equivalent earn on average 86% more than employees with only secondary education. It pays off even more when one has a master’s degree or equivalent (such graduates earn 35% more than bachelor’s graduates and 151% more than secondary education employees).

The report derives that in 2014, due to economic slowdown the salaries for both the genders in the education sector decreased. However, salaries of men haven’t rebounded yet to the 2013 level, while salaries of women have already surpassed the 2013 level. This is an optimistic sign in terms of lowering the gender pay gap in this sector. 

Table 2: Median hourly wage by gender and year

Gender

Sample

Median gross hourly wage

 

2013

2014

Q1-Q3/2015

Mean

Male

1,430

240.6

186.5

216.5

220.0

Female

472

183.4

154.0

192.5

171.3

Total

1,902

225.2

174.5

212.6

205.3

Source: WageIndicator Foundation

The overall gender pay gap in India stands at 27%. Men earn a median gross hourly salary of ₹288.68, whereas women earn only a median gross salary of ₹207.85 per hour. Specific to manufacturing, the average hourly salary for men is ₹ 259.8 and women is ₹ 192.5. This is a 34.9% gender pay gap, the highest across all sectors. The IT sector too is strongly male dominated, with a 34% gender pay gap. This can be accredited to the low proportion of women working in this sector.

Sharing his views, Mr. Sanjay Modi, Managing Director (India/Middle East/South-East Asia/Hong Kong) said, “It is for the first time in many years that our PM acknowledged the contribution of teachers by recognizing Teacher’s day. A robust education system is undoubtedly a key growth driver for India. However it’s ironic that while education is considered one of the major factors influencing salaries, yet it is the least paid sector in India. If the government needs to fulfill its vision of ‘jobs for all’ and a skilled India, then we need a sound education ecosystem with high quality teaching staff. Hence, it becomes even more pivotal to make the salaries of teachers and researches competitive, if not lucrative.”

Speaking about the gender pay gap, Mr. Modi said, “In India, the manufacturing sector has always lagged behind among the services sector and hence there have been limited opportunities for women in this sector. What’s surprising however is that an evolved sector like IT has a significantly high gender pay gap of 34%. For India Inc. to truly embrace gender diversity and help women break that glass ceiling, it must take note of these statistics. It is important to re-look the way individuals get compensated where it should not be about gender, but about merit & capability. 

Table 2: Median hourly wage by gender and year

Gender

Sample

Median gross hourly salary

 

2013

2014

Q1-Q3/2015

Mean

Male

26,985

288.7

288.7

288.7

288.7

Female

4,210

210.4

218.8

219.4

215.5

Total

31,195

277.1

282.3

274.9

278.2

Source: WageIndicator Foundation 

Other key highlights of the index:

  • The highest median gross hourly salary is in the IT sector, reaching ₹346.42
  • Workers in domestically owned companies in India earn around ₹106 per hour less than workers in partially foreign-owned companies and around ₹233 per hour less than workers in wholly foreign-owned companies
  • Although 75.1% of surveyed employees are satisfied with their job, only 55.4% of surveyed employees are satisfied with their pay

Commenting on the report, Paulien Osse, Director WageIndicator Foundation said, “The second edition of the MSI report is basis a widespread meticulous research across the key sectors relevant to the Indian market. Our sustained association with Monster.com is an evidence of a trusted partnership with an aim to bring forward key insights that act as a credible reference point for the industry.”

Talking about the report, Prof. Biju Varkkey of IIM-Ahmedabad said, “The report analysis every facet of compensation in various sectors paving path to the stable job market in the country. With the new government’s continued emphasis on making India a skill-based workforce, it would act as a model for job creation end entrepreneurship for all socio economic classes.”

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