The Average Salary in India for 2021 (Comparison, Outsourcing)

Average Salary in India

If you’re wondering what India’s average salary is or how much it’ll cost to hire a workforce in India, we’ve got you covered. 

In 2021, the average salary in India is 31,900 INR (Indian Rupee) per month or 3,82,800 INR per annum. That is 428.49 USD per month, according to the exchange rates in July 2021. 

Like anywhere else in the world, salaries in India are affected by several factors including, an employee’s education, city, gender, age, and work experience. 

But the one thing we know for sure?

The average Indian salary is significantly lower than average salaries in countries like the USA (7,900 USD) or even Russia (1,392 USD). And that makes India one of the most popular outsourcing destinations in the world. 

In this article, we’ll take a deep dive into the average salary in India, its comparison with other countries, and the minimum wage in India. We’ll also discuss the top 3 industries commonly outsourced to the country

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Let’s begin.

What is the Average Salary in India?

India’s national average salary amounts to 428.49 USD per month, as per the exchange rates in July 2021. 

A country’s average salary is an important indicator of its standard of living. 

However, other key indicators like the median salary and the average salary range can help you get a broader overview of the country. 

A. Median Salary:  

India’s median salary is 29,400 INR per month (392.07 USD). 

This implies that half of the Indian population earns less than 29,400 INR every month, while the other half earns more than 29,400 INR. 

How is the median salary value different from the average salary?
The median salary represents the middle value between all salaries considered, while the average divides the sum of all salaries by the number of salaries considered.

For example, let’s say employee A earns 20,000 INR, employee B earns 30,000 INR, and employee C makes 50,000 INR. In this case, the average salary is 33,333 INR, whereas the median salary is 30,000 INR. 

B. Salary Range

India’s average salary range extends from 8,080 INR per month (107.78 USD) to 143,000 INR per month (1,907.25 USD).

However, this doesn’t mean that the actual highest salary in India is only 1.43 Lakhs. 

The average salary range only considers salaries that fall between the average lowest salary and the average highest salary in India.

Salary data like the national average salary, the median salary, and the salary range can help you understand the Indian population and economy. 

Salary Comparison in India

While it’s easy to determine the average income in any country, what you actually pay an employee depends on several variables. 

These factors include profession, education, work experience, location, etc. 

We’ll compare the average salaries in India based on each one of these parameters. 

A. Salary Comparison by Profession

The average base salary in India varies drastically across different sectors like IT, manufacturing, customer care, etc. The salaries also differ based on the job profile and the type of job (full time, part-time, freelance, etc.) within each of these sectors. 

Let’s take a look at the salary comparison across different professions in India (full time job): 

ProfessionAverage Indian Salary (per month)
Program Manager1,50,000 INR (2001.45 USD)
Healthcare Consultant1,33,333 INR (1790.44 USD)
Project Manager1,25,000 INR (1669.80 USD)
Life Sciences Consultant1,16,666 INR (1566.78 USD)
Data Scientist91,666 INR (1223.10 USD)
Human Resources Manager (HR Manager)66,666 INR (889.52 USD)
Chartered Accountant66,500 INR (887.01 USD)
Software Developer/ Software Engineer50,000 INR (667.88 USD)
Data Analyst50,000 INR (666.92 USD)
Java Developer41,666 INR (555.76 USD)
Restaurant Manager37,281 INR (498.02 USD)
Legal Advisor35,532 INR (474.10 USD)
Journalist31,442 INR (419.53 USD)
Interior Designer25,000 INR (333.97 USD)
Mechanical Engineer20,850 INR (278.53 USD)
Accountant20,000 INR (267.17 USD)
Content Writer20,000 INR (267.17 USD)
Teacher20,000 INR (267.17 USD)
Graphic Designer20,000 INR (267.17 USD)
Data Entry Operator15,228 INR (203.43 USD)

Source: glassdoor.com

B. Salary Comparison by Education

In most countries, you’ll earn a bigger paycheck if you have a higher education. The scenario isn’t any different in India.

A survey by salaryexplorer.com shows that employees with a certificate or a diploma earn 17% more than their peers who have only graduated from high school.

Employees with a Bachelor’s Degree earn an average of 24% more than those who only have a certificate or a diploma. Similarly, professionals with a Master’s Degree make up to 29% more than those with a Bachelor’s Degree.

Ph.D. holders earn high salaries that are approximately 23% more than Master’s Degree holders for the same job title.

Note: Salary estimate based on education depends on the different job locations and the chosen career field.  

C. Salary Comparison by Experience

It’s a given that any employee’s pay scale will increase with their work experience. 

Salary Explorer’s salary report reveals that, on average, a person’s starting salary usually doubles by the time they cross the ten years experience mark.

Here’s an approximate breakdown of how salaries increase with increasing work experience: 

Number of Years of ExperienceAverage Progress in Salary
2-5 years+32%
5-10 years+36%
10-15 years+21%
15-20 years+14%
20+ years+9%

Source: salaryexplorer.com

Note: All these salary figures are only guidelines. Individual salaries may differ significantly.

D. Salary Comparison by Location

An Indian employee’s salary may vary based on their job location. 

Let’s take a look at the average salaries in key locations (cities and states) across the country: 

Location Average Indian Salary (per month)
Bangalore60,583 INR (808.08 USD)
Pune48,583 INR (648.02 USD)
Mumbai45,500 INR (606.90 USD)
Andhra Pradesh41,916 INR (559.09 USD)
New Delhi41,500 INR (553.54 USD)
Uttar Pradesh34,500 INR (460.18 USD)
Kerala32,666 INR (435.71 USD)
Chandigarh32,250 INR (430.16 USD)
West Bengal31,916 INR (425.71 USD)
Goa28,000 INR (373.48 USD)

Source: payscale.com

If you’re planning to hire a workforce in India, this salary data should help you plan a salary structure and decide on your employees’ gross salary and the company’s compensation budgets. 

Now that we’ve looked at the different factors that determine the national average salary in India, let’s discuss salary increments in the country. 

The Average Salary Increment in India

Increments across several industries are steadily increasing in India. 

According to a survey by Willis Towers Watson India, Indian employees are projected to get a 6.4% average salary increase in 2021 (median salary increase of 7%), despite the pandemic outbreak. 

Although it’s lower than the median salary increase of 7.5% in 2020, it’s higher than that year’s average annual salary increment of 5.9%. 

Here’s a breakdown of the average increment Indian employees may get across various industries:

IndustryAverage Annual Salary Increment
Technology8%
Pharmaceuticals8%
Consumer Products8%
Financial Services7%
Manufacturing7%
BPO6%
Energy4.6%

Source: Willis Towers Watson India survey

The Minimum Wage in India

Minimum wage refers to the minimum base salary you have to pay an employee per day. 

Unlike most countries, India doesn’t have a fixed national minimum wage. It’s set under the Minimum Wages Act of 1948 by both the Central and the State governments. That’s why the average wage varies across the different Indian states. 

For instance, the minimum wage for an unskilled worker in New Delhi is 612 INR (8.16 USD) per day. But in Bihar, the minimum wage is set much lower at 304 INR (4.05 USD) per day.

So the average hourly wage or daily wage you pay your employees will depend on the state you’re operating in. 

Average Salary in India Vs. the World

The World Economic Situation and Prospects (WESP) 2021 report by the United Nations classifies all countries of the world into one of three economic categories: 

  • Developed economies
  • Economies in transition
  • Developing economies 

Let’s take a look at the average salaries in countries that belong to these categories and how it compares to India: 

A. Average Salaries in Developed Economies

CountryAverage Salary Per MonthComparison to Average Salary in India (in %)
United Kingdom8,092 USD180% 
United States7,900 USD179%
Norway5,696 USD172%
Germany4,493 USD165%
Austria4,470 USD165%

Source: salaryexplorer.com

B. Average Salaries in Economies in Transition

CountryAverage Salary Per MonthComparison to Average Salary in India
Georgia2,191 USD134%
Russia1,392 USD106%
Albania923 USD73%
Kazakhstan903 USD71%
Ukraine845 USD66%

Source: salaryexplorer.com

C.  Average Salaries in Developing Countries

CountryAverage Salary Per MonthComparison to Average Salary in India
Thailand2,949 USD149%
Philippines875 USD69%
Vietnam748 USD54%
Egypt587 USD31%
Pakistan508 USD17%

Source: salaryexplorer.com

These salary trends are mainly because of the low cost of living in India. On average, the cost of living in India is 65.24% lower than in the United States.

The abundance of skilled labor is another aspect that has led to low average salaries in India. 

For example, India produces about 1.5 million engineers every year from 4,000 institutes — more engineers than the USA and China combined. This scenario has led to a situation where demand for engineers falls while the supply increases every year. 

With an average income of just 425.41 USD in 2021, India offers a qualified talent pool at a lower cost than most developing economies. That’s why India has emerged as a preferred destination for outsourcing. 

With these figures in mind, let’s look at the top industries that are outsourcing to India.

For more information, read our complete guide on outsourcing to India

Top 3 Industries Commonly Outsourced to India

While you can outsource almost any non-core task to India, here’s a closer look at some of the most popular ones:

1. Information and Technology (IT) Services

The total market size of the Indian IT market is over 235 billion USD. Additionally, the IT outsourcing industry is the fifth-largest industry in India. 

India boasts of expertise in the industry and advanced infrastructure. You can leverage this expertise cost-effectively because of India’s low average salary. 

For instance, the average monthly salary for an IT services manager in India is 1,365 USD. Hiring the same manager could cost you 3,466 USD per month in China and 5,440 USD per month in Canada. 

IT services you can outsource to India are technical support, software development, and website and mobile app development.

2. Business Process Outsourcing (BPO)

India has been a reliable BPO service provider for reputed companies in the past. India’s global IT and BPO services market will likely grow at a Compound Annual Growth Rate (CAGR) of 8% between 2021 and 2024.

Among a wide range of BPO services, India is a popular outsourcing destination for customer care services. This popularity is because of the low average salary for BPO services in India. 

For example, the average pay for a call center agent in India is 201 USD per month. The same hire can cost you 318 USD per month in the Philippines and 397 USD per month in Mexico. 

3. Knowledge Process Outsourcing (KPO)

KPO involves outsourcing information processing in large volumes. Some of the business activities that use KPO are:

  • Financial and Investment research
  • Research and Development
  • Data Analysis and Interpretation

Handling data in large volumes requires a large number of resources and a specialized workforce. And because India has low average salaries, you can access these KPO services at nominal costs by outsourcing to the country. 

The average monthly salary for a data analyst in India is 666 USD. You’d have to pay much more for a data analyst from other popular outsourcing destinations, such as Romania (718 USD per month) and Poland (1,293 USD per month). 

Outsourcing these services to a country like India can significantly lower your overall costs.

However, there are certain challenges of outsourcing

Outsourcing to India or any other offshore destination can lead to difficulties in ensuring your outsourced team is productive. 

Fortunately, you can keep track of your outsourced employee’s productivity and performance by introducing employee productivity management software like Time Doctor

With Time Doctor, you can track your employees’ time, attendance, schedules, and productivity effortlessly, even while working remotely

Additionally, Time Doctor’s payroll features make managing salaries very simple. You can pay your Indian employees in any currency, including INR, USD, etc., and set up customizable payroll for salary or hourly wage employees. 

Wrapping Up

Although the average salary in India is steadily increasing, it is still lower than most countries worldwide. 

That’s why you can get access to a qualified talent pool at affordable costs, making India a popular choice for outsourcing.
Use the information we covered here to understand the average salaries in India and determine if outsourcing there is the right move for your business.

 
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