Average Salary

The Ultimate Guide to the Average Salary in India

(Updated 2022)

Thinking of hiring, outsourcing or growing your business in India? This guide will give you a complete breakdown of the average salary in India -- and so much more.

average salary in India
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Introduction

When outsourcing work, you want to find a balance of top talent and affordability. One country that commonly crops up in such discussions is India. It’s well-known that the average salary in India is lower than in most Western countries, and yet, there’s excellent IT infrastructure in place making it a good option for cherry-picking talent to fill vacant roles.

In this guide we’ll crunch the numbers, assessing the average salary in India across a variety of factors including gender, city, and education level. We’ll also take a look at the top industries that commonly outsource to India, such as business process outsourcing (BPO), IT services, and software development.

al ansari exchange rate for Indian rupees

What is the Average Salary

in India?

First, to gain a deeper understanding of the figures in play, let’s take a look at how Indian currency, the Indian rupee, fares against other currencies. The al ansari exchange rate for Indian rupees is an accurate conversion rate site for the Indian and other currencies.

If you were to send money to India from the UK, USA, or Europe, here’s how much the recipient would receive in rupees:

  • 1 Pound = 99.931 Rupees
  • 1 Euro = 83.872 Rupees
  • 1 US Dollar = 76.537 Rupees

The general consensus is that the average salary in India is around ₹32,840 per month ($426 USD), with some reports reporting figures slightly above or below this figure. But as a guide, it is the best salary figure to use. The yearly salary works out at around ₹394,080 ($5,115 USD). To give you a clear idea of what that translates to in American, English, and European currencies, here’s the average salary in the euro, USD, and pounds sterling:

Per month
  • 32,840 rupees is 391 euro
  • 32,840 rupees is 426 USD
  • 32,840 rupees is 328 pounds
Per year
  • 394,080 rupees is 4,700 euro
  • 394,080 rupees is 5,155 USD
  • 394,080 rupees is 3,947 pounds

As you can tell, the salary, when converted, is barely enough to make a living in most Western countries. Yet, due to the lower cost of living in India, it’s more than enough to get by. For example, it’s estimated that someone living alone would pay ₹24,033 ($314 USD) in living costs in India.

Indian Salary Range

The salary range will of course vary from job to job, so to give you a ballpark idea, we’ll take a look at a few examples.

One of the most lucrative professions in India is data scientist, which can yield a yearly salary of ₹793,400 ($10,395 USD) a year, double the average salary. At the other end of the scale, one of the lowest paying positions, that of a waiter, pays around ₹197,400 ($2,586 USD) a year, significantly less than the average salary.

Average Hourly Wage in India

The average hourly wage in India is around ₹96 per hour ($1.26 USD). This will of course vary from profession to profession, though.

For example, a web developer who makes on average ₹20,000 ($262 USD) per month will make around ₹160 ($2.08) per hour assuming they work an eight-hour work day, and clock-in five days a week.

Meanwhile, someone who works in real estate, earning around ₹60,000 ($780 USD)per month will make close to ₹375 (4.87 USD) per hour. Finally, a flight attendant, who earns ₹30,000 ($390 USD) per month would earn ₹187.50 ($2.43 USD) for every hour worked.

Salary Based on Education Level

It’s universally accepted that skills and qualifications count for a lot in the world of work, and more often than not, lead to higher rates of pay. India is no exception.

  • No degree - for workers without a degree in India, an average salary is around ₹240,000 per year ($3,176 USD)
  • High school education - with a high school education, you can make on average ₹300,000 per year ($3,971 USD)
  • Undergraduate - undergraduates in India with a bachelor’s degree can expect to earn on average ₹550,000 per year ($7,150 USD)
  • Masters - with a Master’s, you can expect to earn on average ₹1,915,690 per year ($29,400 USD)
  • Doctorate degrees - those with doctorate degrees can expect a healthy salary close to ₹2,474,744 per year ($32,171 USD)

From the data, it’s clear that those with doctorates and Masters have a much higher probability of earning more than ₹1 million per year than those without a similar level of education.

Salary Based on Gender

Unfortunately, the pay gap between genders in India is better described as a chasm. Gender equality regarding pay is far from a reality in the country, and this is reflected in the salaries. In the World Economic Forum 2021 report, India ranks 140th out of 156 countries. This ranking suggests significant disparity of pay between genders.

In a 2018 report, it was suggested that this disparity could be as high as 19% in some sectors such as the financial industry.

Salary Comparison by City

Here’s a list of five major cities in India, spanning various regions, and the average salary for each:

City
Salary range
City
Salary range
City
Salary range
City
Salary range
City
Salary range
Bangalore
₹735,000 ($9,555 USD)
Delhi
₹528,000 ($6864 USD)
Jaipur
₹352,000 ($4,576)
Ludhiana
₹336,000 ($4368 USD)
Mumbai
₹569,000 ($7,397)
City
Bangalore
Delhi
Jaipur
Ludhiana
Mumbai
Salary range
₹735,000 ($9,555 USD)
₹528,000 ($6864 USD)
₹352,000 ($4,576)
₹336,000 ($4368 USD)
₹569,000 ($7,397)

As you can see, Bangalore has one of the highest average salary rates, even higher than the capital. Ludhiana and Jaipur have some of the lowest average salaries, in line with the national average salary.

Bonuses and Incentives

Deferred incentives, such as stock options, are commonly used in India in an attempt to retain the company’s top talent. This has become more commonplace in recent years as companies have found it increasingly difficult to hold onto its best employees.

Long-term incentives like these encourage employees to stay on with the company longer. Another approach has been to appeal to the sense of instant gratification with upfront pay, to convince talent that the company is worth sticking around for.

The issue of high employee churn rates appears to mostly impact technology and financial sectors, as more and more companies from the US and Western countries poach top talent through outsourcing.

A 2021 report from Kearney points out that India is one of the most popular digital hubs. The country has experienced a surge in popularity of start-ups in recent years and received a lot of outside investment, particularly in the industries of media tech, energy tech, and retail tech. The evidence is clear: India is investing heavily in digital services, and continues to be a popular choice for outsourcing which has a knock-on impact on employee retention for tech companies based in India.

Average Salaries for Job Categories

According to Glassdoor, a website that aggregates employee reviews and ratings of previous jobs, here are some average salary ranges across a range of professions:

Profession
Web developer
Customer Services Manager
Associate Engineer
Software Engineer
Network Engineer
Administrative
Android Developer
Real Estate
Flight attendant
Salary range
₹20,000/mo ($260 USD)
₹16K - ₹35K/mo ($208-$455 USD)
₹28K - ₹62K/mo ($364-$806 USD)
₹50,000/mo ($650 USD)
₹19K - ₹21K/mo ($247-273 USD)
₹33K - ₹35K/mo ($429-$455 USD)
₹12K - ₹13K/mo ($156-$169 USD)
₹57K - ₹61K/mo ($741-$793 USD)
₹31K - ₹34K/mo ($403-$442 USD)
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Profession
Salary range
Web developer
₹20,000/mo ($260 USD)
Customer Services Manager
₹16K - ₹35K/mo ($208-$455 USD)
Associate Engineer
₹28K - ₹62K/mo ($364-$806 USD)
Software Engineer
₹50,000/mo ($650 USD)
Network Engineer
₹19K - ₹21K/mo ($247-273 USD)
Administrative
₹33K - ₹35K/mo ($429-$455 USD)
Android Developer
₹12K - ₹13K/mo ($156-$169 USD)
Real Estate
₹57K - ₹61K/mo ($741-$793 USD)
Flight attendant
₹31K - ₹34K/mo ($403-$442 USD)

Customer service manager is one of the lowest paid professions, on average, while software engineer is one of the highest paid professions. It’s reasonable to deduce from this information that the professions earning the most money in India are generally in the tech industry. The salary of a web developer in India is around ₹20,000 ($260 USD) a month whereas that of a software engineer is ₹50,000/mo ($650 USD).

The Average Salary Increment in India

The Economic Times recently reported that there will be an average salary increment of around 9.3% in 2022. The high-tech sector will receive the largest increase, at 9.9%, while the retail sector salaries will go up by around 9.5%.

This average salary increment is thought to be a result of recovering from the pandemic, as companies begin to get back on their feet and normal business resumes. The rate of 9.3% is the highest in the Asia Pacific region, too. While employee retention will continue to be an issue as countries such as the US look to pry away top talent, the overall raise in salary is undoubtedly a significant boon for Indian employees.

Minimum Wage in India

Minimum wage in India remains at an all-time high of ₹178 per day ($2.31 USD)for the third consecutive year. In 2012, the minimum wage was as low as ₹115 per day ($1.49 USD), but in 2018 it rose to ₹176 per day ($2.28 USD) and then in 2019 reached the figure that it is today: ₹178 per day.

In comparison, here are some minimum wage figures for other countries (bear in mind that not all countries measure minimum wage using the same time period):

Country
USA
UK
France
Brazil
Australia
Philippines

Minimum wage (hourly)

$7.25
£8.91 ($11.71 USD)
€10.57 ($11.60 USD)
BRL 5.51 ($1.20 USD)
A$20.33 ($15.34 USD)
67 Pesos ($1.30 USD)

Minimum wage (weekly)

$290
£356 ($466 USD)
€370 ($406 USD)
BRL 220 ($47.87 USD)
A$773 ($581 USD)
2,685 Pesos ($52.27 USD)

Minimum wage(monthly)

$1,256
£1,395 ($1829 USD)
€1603 ($1755 USD)
R$1212 ($255 USD)
A$3,090 ($2,332 USD)
11,513 Pesos ($223 USD)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
Country
Minimum wage (hourly)
Minimum wage (weekly)
Minimum wage (monthly)
USA
$7.25
$290
$1,256
UK
£8.91 ($11.71 USD)
£356 ($466 USD)
£1,395 ($1829 USD)
France
€10.57 ($11.60 USD)
€370 ($406 USD)
€1603 ($1755 USD)
Brazil
BRL 5.51 ($1.20 USD)
BRL 220 ($47.87 USD)
R$1212 ($255 USD)
Australia
A$20.33 ($15.34 USD)
A$773 ($581 USD)
A$3,090 ($2,332 USD)
Philippines
67 Pesos ($1.30 USD)
2,685 Pesos ($52.27 USD)
11,513 Pesos ($223 USD)

Of course, the minimum wage of each country reflects various factors such as cost of living and the national GDP, so it’s impossible to draw a direct comparison. Each figure is also given in the country’s currency.

The Average Salary in India vs. the World

The United Nations drew up a report in 2021 that set out to assess the current state of the global economy, factoring in financial data from countries all over the world. This report detailed information pertaining to salaries, but also indicated what category each country resided in regarding its financial situation.

For example, India falls within the ‘lower-middle income’ bracket based on salary information. The other categories were ‘high income’, ‘upper-middle income’, and ‘low-income’, so that means India is one of the countries with the lowest rates of pay. For the sake of comparison, the UK, USA, and many European countries fall into the ‘high income’ bracket, whereas countries such as Sudan and Madagascar made up the ‘low-income’ bracket.

India’s real GDP is growing at a rate of 5.6% this year, though this is down from 7% in 2021. However, the upward trend suggests that in future the average salary will rise, and we’ve already seen that there is an average salary increment of 9.9% which verifies this positive trend.

What does this mean in concrete terms?

Well, here are average salary figures for countries in different continents that span the various income categories laid out in the report:

Country
India
USA
UK
France
Brazil
Australia
Egypt

Average salary (monthly)

₹32,840 ($426 USD)
$7,900 USD
£5,920 ($7,782 USD)
€4,130 ($4,523 USD)
R$8560 ($1806 USD)
A$7,570 ($5697 USD)
E£9,200 ($495 USD)
Country
Average salary (monthly)
Country
Average salary (monthly)
Country
Average salary (monthly)
Country
Average salary (monthly)
Country
Average salary (monthly)
Country
Average salary (monthly)
Country
Average salary (monthly)
India
₹32,840 ($426 USD)
USA
$7,900 USD
UK
£5,920 ($7,782 USD)
France
€4,130 ($4,523 USD)
Brazil
R$8560 ($1806 USD)
Australia
A$7,570 ($5697 USD)
Egypt
E£9,200 ($495 USD)

The data shows that countries that fall into the ‘high income’ bracket have higher average salaries than those that don’t.

How Does the Average Salary in India Compare to Other Popular Outsourcing Countries?

While India is one of the most popular outsourcing countries, it’s not the only one. So, it’s important to have an understanding of how the average salary in India compares to other popular outsourcing countries, so you can choose wisely.

The table below shows you the average salary in the top outsourcing countries compared with the average salary in India.

Country
Philippines
Pakistan
Mexico
China
Indonesia
Vietnam
Thailand

Average Annual Salary

$10,275 USD (535,000 PHP)
$5,368 USD (981,000 PKR)
$19,871 USD (399,000 MXN)
$55,125 USD (352,000 CNY)
$10,162 USD (146,000,000 IDR)
$14,408 USD (207,000,000 VND)
$2,724 USD (1,160,000 THB)

Compared to Average Salary in India

+101%
+5%
+289%
+978%
+99%
+182%
-47%
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Country
Average Annual Salary
Compared to Average Salary in India
Philippines
$10,275 USD (535,000 PHP)
+101%
Pakistan
$5,368 USD (981,000 PKR)
+5%
Mexico
$19,871 USD (399,000 MXN)
+289%
China
$55,125 USD (352,000 CNY)
+978%
Indonesia
$10,162 USD (146,000,000 IDR)
+99%
Vietnam
$14,408 USD (207,000,000 VND)
+182%
Thailand
$2,724 USD (1,160,000 THB)
-47%

Top 3 Industries Commonly Outsourced to India

Taking on board all the facts and figures we’ve compiled in this guide, it should come as no surprise to learn that India is on many countries’ list for outsourcing work. The country has invested heavily in digital infrastructure, ranks highly as a digital hub in various tech industries, and is considered a ‘lower-middle income’ country.

As such, countries in the ‘high income’ bracket can essentially cherry-pick top talent from India and add skilled workers to their remote workforce. While nearshore outsourcing is popular these days, due to a lack of time difference and similar cultures, India still ranks highly as one of the best low-cost countries for outsourcing.

As we saw from the Kearney global services Index, Asia, and India specifically, produces a lot of tech-savvy talent. Where India beats out other Asian countries is in terms of cost, skills, and business knowledge. As such, it’s an attractive option for outsourcing.

But what are the top 3 industries that rely most heavily on India’s workforce for outsourcing?

send money to India

1. Information Technology

IT infrastructure in India is sound, so it makes sense that many companies would look to the country for skilled IT workers. Indian top IT companies include Tata Consultancy Service (TCS), Infosys, and Mindtree ltd.

India has long been considered a hub for IT experts, which means the talent pool to draw from is vast. The English proficiency is also a huge benefit to companies looking to outsource work, as it minimizes the risk of misunderstandings.

salary of a web developer in India

2. Software development

Due to the heavy investment in digital infrastructure, it makes sense that there are many software and web developers emerging from India.

The growing talent pool is one of the biggest factors for companies outsourcing software development to India. With an English-speaking workforce that offers a cost-effective proposition compared to other countries, India is in pole position to take on software-related tasks and complete them successfully.

Indian top IT companies

3. Business process outsourcing

Business process outsourcing (BPO) refers to the outsourcing of various business-related tasks such as research and development and data analysis. BPO is a fast-growing information technology enabled service (ITES), concerned with everything from risk mitigation to cost analysis.

Outsourcing BPO tasks to India has become popular in recent years due to the skilled, yet affordable workforce. Tapping into a well-trained English-speaking workforce without going over budget is attractive to a lot of companies.

How to Manage an Outsourced Team in India

If you’re convinced that outsourcing to India could be the key to unlocking new levels of productivity in your business, some form of employee monitoring software could help make the transition as smooth as possible.

When you bring new employees into the fold, from another country, it’s nigh-on impossible to track productivity without the right tools. Time tracking software allows you to monitor performance using the reliable metric of time. With activity tracking software you can add to your employee roster without taking away what makes your business tick.

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india average salary

Final Words…

India is one of the world’s fastest growing economies. It’s brimming with exceptional talent, drive and ambition. This makes it an ideal location for finding and recruiting skilled workers to grow your business, whatever field you are in.

Having identified India as the best source for the outsourced talent your company needs, use the information in this guide to hire in a way that’s effective for your business and fairly compensates the skilled Indian talent you bring on board.

And, remember, Insightful can help simplify managing your outsourced team by effectively managing their workloads, optimizing workflows, tracking time, and more. Find out how easy Insightful makes it to manage outsourced teams with a free 14-day trial.

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