IT highest paid sector in India at ₹ 346.42/hr; however only 57% satisfied with their pay - February 29, 2016

IT highest paid sector in India at ₹ 346.42/hr; however only 57% satisfied with their pay 

• BFSI sector second most lucrative with median gross salary of ₹300.23/hr
• Manufacturing sector median gross salary low at ₹254.04/hr

Bangalore/Hyderabad, Feb 28, 2016 – Monster India (www.monsterindia.com), one of the leading online career and recruitment solutions providers in the country released the ‘Monster Salary Index’ (MSI) sectoral reports for Manufacturing, IT and BFSI sectors. Monster India will soon be coming up with a holistic report analysing other key sectors as well. The Monster Salary Index (MSI) is aimed at successfully empowering jobseekers with a benchmarking to compare their salaries with other anonymous profiles across a broad spectrum of industry domains, experience, functional groups both in India and other global markets.

The report highlights that employees in the IT sector continues to be the highest paid at ₹346.42/hr which is about 24% higher than the median salary for the entire Indian economy taken together (₹279.7). However only 57% of the employees surveyed in the IT sector are satisfied with their pay.

The BFSI sector is close second with a median gross salary of ₹300.23/hr. However, only 52% employees in the BFSI sector are satisfied with their pay. The salaries in the manufacturing sector is low as ₹254.04/hr. Interestingly, about 60% of them are satisfied with their salary.

The government has embarked upon its very ambitious mission to digitise India through its Digital India initiative. According to a recent McKinsey report, the realisation of Digital India will help the country with 20-30% incremental GDP by 2025. However, no campaign or initiative can succeed if it doesn’t have the right talent pool. Therefore it is important to assess the job satisfaction level of the employees. If salary is an important retention driver, then it’s critical to draw the impact of salary on individuals.

Sharing his views, Mr. Sanjay Modi, Managing Director (India/Middle East/South-East Asia/Hong Kong) said, “If we look at the IT scenario, this sector though the highest paid has only about 57% employees satisfied by their salaries. Our report brings out similar trend in the BFSI space as well. This clearly shows that we are in a scenario where salary becomes one of the key factors to attract and retain employees.”  

Further speaking, Mr. Modi added that, “The government has embarked upon its ambitious mission of an India that’s even more digital and more inclusive financially. At the heart of these initiatives is the need for a strong talent pool that would eventually drive these initiatives. Therefore it is important for companies to closely analyse the correlation between salaries and employee satisfaction. The role of key talent becomes crucial and this research may be food for thought for organisations when they are benchmarking compensation and salaries”.

Other key highlights

• Manufacturing is the least paid with a median gross salary of ₹254.04. This is about 9% less than the median salary for the entire Indian economy taken together (₹279.7)
• Wholly foreign owned manufacturing companies pay a median gross hourly salary of ₹319.5 as against ₹163.6 hourly salary paid by wholly owned domestic manufacturing companies in India
• In the BFSI space, small companies pay an hourly salary of ₹ 197.95, while large firms pay an hourly average salary of ₹ 324.51 

Table 1. Key findings across sector

Source: WageIndicator Foundation

Commenting on the report, Paulien Osse, Director WageIndicator Foundation said, “The MSI has been devised basis an extensive methodical research across Manufacturing, IT and Financial sector with a view to empower recruiters and jobseekers to analyze salaries through a credible platform. Our collaboration with Monster.com for the second year is testimony of a valued partnership, bringing forth insights that are beneficial to the industry in the areas of salary”.

Talking about the report, Prof. Biju Varkkey of IIM-Ahmedabad said, “The insights across sectors enable us to foresee the dynamics of job sector in India. The insights across the three sectors may be effectively leveraged by the industry to address the various issues and challenges in the area of salary, enabling them to look for solutions that would subsequently benefit one and all.”