What is the Average Salary in India?

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 salary ranges 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 India as compared to others. No wonder, India which is technologically advanced and has the best in brains and infrastructure, is an excellent choice for outsourcing employment. 

Some industries pay high salaries in India as compared to others. With the information given below, you can compare your salary in India with 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 India is 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 salary is approximately ₹3,87,500 per year which is around ₹32,840 per month. That is the equivalent of USD 422.03 per month as per the exchange rates of May 2022. 

The average salary in India is 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 India vs the 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 salary and 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 this average 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 ₹143,000 per 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 salary varies 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.

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:

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. 

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:

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 salary minimum 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:

In Transition Economies Average Salaries

This list compares the average monthly salary in India to other in-transition economies in the world.

Developing Economies Average Salaries

The list of salaries in developing economies as compared to Indian salaries is as below:

The above tables of salaries across the globe show favourable comparisons of the average salary India due to its low cost of living, which is 65.24% lesser than the USA. 

Conclusion

The questions pertaining to what is the average salary in India are 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 and English-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 Khatabook app, 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!