What is the average salary in India? Get the figures here!

What is the average salary in India?

The average salary in India sits at roughly INR 21,000 to INR 24,000 per month (about USD 250 to USD 290) for regular salaried workers. However, pay varies widely by role, city, and experience.

• Urban and professional roles pay far more than the national average, often INR 55,000 or higher per month.
• Technology roles command the highest salaries and the fastest annual increases.
• Low labor costs are a major reason global companies outsource to India.

The average salary in India is one of the lowest among major economies. That is a key reason the country remains an outsourcing powerhouse. Businesses go there to delegate IT and related services at a fraction of the cost in more developed countries.

Contrary to most skeptics, outsourcing services to India is not slave labor. Rather, BPO workers are paid more than the local minimum wage. If you are curious about how much an employee in India earns, read on. This guide covers the average salary in India and the factors that shape it.

The national average salary in India

Per the latest statistics, average monthly salary in urban India has been reported near INR 21,647 (about USD 250). More recent Periodic Labour Force Survey (PLFS) data puts average regular-salaried earnings closer to INR 24,000 per month. Either way, India has one of the lowest average wages worldwide, which helps attract foreign investment.

In addition, cash compensation averages around INR 1,55,350, with a broad salary range from roughly INR 75,000 to INR 3,10,419.

The minimum wage in India

An average Indian worker earns a minimum rate of about USD 2.36 per day, according to Trading Economics. Depending on profession and other factors, a skilled worker can earn far more. In fact, professionals in tech-related roles can make significantly higher pay.

Wage policy

India was one of the first developing countries to formulate a minimum wage policy, through the Minimum Wage Act of 1948. The country later introduced a national minimum wage floor in 1991 and has raised it gradually since.

An organization’s total investment to hire each worker, known as Cost to Company (CTC), shapes the average salary in India. Originally, the wage code did not fix what share of pay should be basic salary. A new wage code now sets basic salary at a minimum of 50% of CTC. The remaining half covers allowances.

While the code can raise private-sector pay, it can also reduce take-home pay. That drop comes from higher deductions for tax, provident fund, and gratuity.

Factors that affect the average salary in India

A news article reports a striking figure. An employee earning INR 25,000 a month sits within the country’s top 10% of wage earners. As a result, individual pay can land well above or below the average depending on several factors.

Cost of living

Mercer’s Cost of Living survey found Mumbai to be the most expensive city in India. It also ranks among the pricier cities in Asia. Even so, it remains cheaper than New York, Chicago, and many developed cities.

According to Numbeo, a single person in India faces monthly costs of around USD 320 without rent. Because rent and other expenses run lower, overall costs can be well below those in the Philippines.

Education

Unemployment in Indian youth has long been a challenge. Still, it does not stop Indians from investing in education, because they know it pays off over time.

Indian college graduates earn at least 17% more than high school graduates. In addition, they tend to ascend the pay curve faster than their non-graduate peers.

Roles and expertise

Roles and tenure both shape an employee’s pay scale. PayScale lists indicative median pay for popular jobs in the country as follows.

As in other countries, the average salary in India rises with tenure. In fact, a worker’s pay often doubles by the time they reach ten years of experience. According to data by Aon PLC, the technology sector receives some of the highest annual salary increases. In recent years, average India hikes have hovered around 9%.

Location

Because of its federal structure and laws, India has a more complicated minimum wage structure than many other federal countries. As a result, each region reports a different average salary. The figures below are indicative averages for popular Indian outsourcing locations.

Employment status

Regular and non-regular workers also face wide pay gaps depending on their sector. In 2018, regular workers earned as much as USD 180.63 per month, while non-regular workers earned USD 77.96. Because regular workers have better odds of raises over time, their non-regular counterparts often see little wage growth.

The average salary in India vs other countries

As noted, the average salary in India is lower than in developed countries such as the US and the UK. Still, it stays competitive with other offshoring destinations. The tables below offer an indicative comparison of India with other outsourcing countries and their markets.

India vs offshoring destinations

India vs outsourcing markets

Frequently asked questions about the average salary in India

What is the average monthly salary in India?

Average monthly pay for regular salaried workers sits around INR 21,000 to INR 24,000 (roughly USD 250 to USD 290). However, professionals in metro cities and tech roles routinely earn several times that figure.

Which sector pays the highest average salary in India?

Technology and IT roles pay the most and also receive the fastest annual increases. Because global demand for Indian tech talent stays strong, software and engineering salaries continue to climb.

How does the average salary in India compare to the Philippines?

The two are broadly similar. India’s average sits near USD 250 to USD 290 per month, while the Philippines is around USD 308. As a result, both remain highly cost-competitive outsourcing destinations.

Why is the average salary in India so low?

A large labor supply, a lower cost of living, and wide regional disparities all keep average wages down. Because everyday costs are lower, those wages still support a reasonable standard of living in many areas.

Does experience raise the average salary in India?

Yes. Pay tends to rise steadily with tenure and often doubles by the ten-year mark. In addition, higher education accelerates that climb, with graduates outpacing non-graduates.

Outsourcing to India is worth your investment

There is little doubt that outsourcing to India can be worth the investment. With competitive salaries across every area of expertise, a budget of USD 100,000 goes a long way.

However, cost alone does not guarantee the best service. Instead, your goal should be optimized services that satisfy customers and build lasting relationships. The right outsourcing provider delivers that added value. So plan your strategy, reach out to a preferred provider, and prepare your processes to delegate.

Key takeaways

• The average salary in India is roughly INR 21,000 to INR 24,000 per month for regular salaried workers.
• Role, city, education, and experience all move pay well above or below that average.
• Technology roles pay the most and enjoy the highest annual increases, around 9% in recent years.
• India stays cost-competitive with the Philippines and other offshoring destinations.
• Choosing the right provider matters more than chasing the lowest possible cost.