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Manufacturing sector paid at ₹ 254. 04/hr; 9% less than the median salary of Indian economy, February 28, 2016

IT highest paid sector in India at ₹ 346. 42/hr, though only 57.4% satisfied with their salary. BFSI second highest median salary owing to high education levels

Manufacturing sector paid at ₹ 254. 04/hr; 9% less than the median salary of Indian economy

 

  • IT highest paid sector in India at ₹ 346. 42/hr, though only 57.4% satisfied with their salary
  • BFSI second highest median salary owing to high education levels

 

New Delhi/Mumbai/Chennai/Kolkata 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 the manufacturing sector is paid the least. With a median gross salary of ₹254.04/hr, employees in this sector are paid about 9% lesser than the median salary for the entire Indian economy taken together (279.7/hr). This is an eye-opener despite the government’s focus towards the sector through its ‘Make in India’ initiative. The findings of the manufacturing sector show that irrespective of the education levels, the salaries are still very low; even for a Master’s degree holder at ₹260.8/hr. Additionally, foreign owned manufacturing companies pay nearly double of what Indian manufacturing firms pay their workers.

The median gross hourly salary in the IT sector is ₹346.42 while for the BFSI sector is ₹300.23. Despite being paid about 24% higher than the media salary of country, only 57.4% employees in the IT sector are satisfied with their pay. The report derives that in the BFSI sector the relatively higher remuneration reflects the high level education of workers with 16-17 years of schooling.

Sharing his views, Mr. Sanjay Modi, Managing Director (India/Middle East/South-East Asia/Hong Kong) said, “As a nation, we have always been a services economy and hence it does not come as a surprise that the manufacturing sector is inadequately paid. India's GDP stands roughly around USD 2 trillion, in which the manufacturing sector's contribution is just about 15 to 16 per cent. Manufacturing therefore must take off in a big way, if India needs to grow exponentially and transform itself into an industrial economy. The findings prove that immediate measures are required to rectify the salary standards, especially since this sector is highly labour intensive”.

Speaking about the other sectors, Mr. Modi said, “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. 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”.

Other key highlights

  • In the IT sector, male supervisors out-earn female supervisors, and males are compensated higher for more experience than females with similar experience
  • Bonuses are more common in the IT sector than BFSI & manufacturing
  • 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

Parameters

Manufacturing

Banking, Financial Services & Insurance

Information Technology

 

Median gross hourly salary

₹254.04

₹300.23

₹346.42

 

Wholly domestic owned

₹163.6

₹197.31

₹261.3

 

Wholly foreign owned

₹319.5

₹451.63

₹536.6

 

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.”

###

Notes to the Editor

The analysis presented in this report is based on the WageIndicator dataset covering the period of January 2013 - May 2015. The wage analysis is based on data collected from Paycheck India’s (www.paycheck.in) Salary Calculator and Monster Salary Index from the aforementioned period. The sample used for the analysis consists of 6,726 observations.

Monster Salary Index (MSI) is an initiative by Monster India in collaboration with Paycheck.in (managed by WageIndicator Foundation) and IIM-Ahmedabad as a research partner. MSI has successfully empowered 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. For employers, MSI is an online salary survey that aims to provide employers with practical information and helps them make informed decisions by analyzing the salary market and optimizing employee remuneration.

About Monster India
Monster India, India’s leading online career and recruitment resource with its cutting edge technology provides relevant profiles to employers and relevant jobs to jobseekers across industry verticals, experience levels and geographies. More than 200 million people have registered on the Monster Worldwide network.  Today, with operations in more than 40 countries, Monster provides the widest and most sophisticated job seeking, career management, recruitment and talent management capabilities globally. Monster India started its operations in 2001. Headquartered in Hyderabad, the company has presence in 11 other cities of India viz., Mumbai, Delhi, Bangalore, Chennai, Pune, Kolkata, Ahmadabad, Baroda, Chandigarh, Jaipur and Cochin. 

Monster.com was voted Product of the Year under the 'Online Job Portals category’ in a survey of over 18000 people by Nielsen. Back in 2014, Monster mPower Search was voted Product of the Year under the ‘Online Job Portals category’ in the same survey. Monster India and DishTV partnered in convergence of the Internet and TV medium to make job services accessible to TV viewers across all cities, bridging the unmet need of the audience for whom access to the internet is limited. This first ever job search initiative is called ‘Monsterjobs Active’.

The Indian Air Force Placement Cell (IAFPC) selected Monster India for a collaboration to provide a robust platform to assist retired and shortly retiring Air Warriors seek suitable second career opportunities in the corporate world.  Monster also initiated ‘Rozgarduniya.com’ - a job portal exclusively for jobseekers in rural India to enable employers in corporate India to connect with rural talent, thus removing the traditional barriers they face in this process.

To learn more about Monster India visit: www.monsterindia.com | www.facebook.com/monsterindia | https://twitter.com/monster_india

About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW) is a global leader in connecting people to jobs, wherever they are. For more than 20 years, Monster has helped people improve their lives with better jobs, and employers find the best talent. Today, the company offers services in more than 40 countries, providing some of the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities. Monster continues its pioneering work of transforming the recruiting industry with advanced technology using intelligent digital, social and mobile solutions, including our flagship website monster.com® and a vast array of products and services.   

For more information visit: monster.com/about

About WageIndicator Foundation (www.wageindicator.org)
The WageIndicator Foundation started in 2001 to contribute to a more transparent labour market for workers and employers. It collects, compares and shares labour market information through (online & face-face) surveys and desk research. It serves as an online library for wage information, Labour Law and career advice. 

The WageIndicator Foundation is assisted by world-renowned universities, trade unions and employers’ organisations and currently operates in 80 countries. Their international staff consists of some 100 specialists spread over the whole world. The foundation has strong relationships with Monster since 2003. The WageIndicator Foundation is a global organization reaching millions on a monthly basis.

For more information please visit:  WageIndicator Foundation, Nieuwe Prinsengracht 130, 1018 VZ Amsterdam, The Netherlands +31 6 539 77 695 – office@wageindicator.org

WageIndicator Foundation has offices in Amsterdam (HQ), Ahmedabad, Bratislava, Buenos Aires, Cape Town, Dar es Salaam, Maputo and Minsk.

About Paycheck India (www.paycheck.in)
Paycheck India a research initiative at Indian Institute of Management Ahmedabad is part of WageIndicator, an organization that collects and shares data about wages, labour law and career in more than 80 countries.  Paycheck India aims to bring transparency in the labour market by providing salary predictions for 1600 occupations in India through its Salary Checker. It also provides regular updates on state wise minimum wages in India, living wage calculation, labour laws and career advice. 

About IIM-A (www.iimahd.ernet.in)
IIMA is the leading school of management in India and one of the top rated management schools in Asia. It offers long duration programs in management, agri-business, executive management and faculty development programs. IIMA also conducts doctoral level research program in management and public systems. The institute has contributed significantly to management education of working executives, government and policy makers and armed forces. Faculty members participate in governance of firms and organisations by providing advisory, capacity building support as well as taking roles in boards and trusts. IIMA hosts Paycheck India and was the first Asian country to be part of WageIndicator. 

For further queries please reach: 

Priyanka Sharma Kaintura

Monster India

priyanka.sharma@monsterindia.com

 

M Sindhu

Genesis Burson-Marsteller

(91) 9899428304

m.sindhu@bm.com