India’s starting wages among lowest in Asia-Pacific region

The average monthly starting pay in India is around $400 (Rs 24,000), less than one-fifth of the equivalent paid in South Korea and Singapore, said the study by Towers Watson’s Data Services. Graduate Indian employees sit towards the bottom of the Asia Pacific countries in terms of starting salary, it said, adding that it augurs well for the ‘Make in India’ campaign as this would give the multinational corporations (MNCs) a competitive advantage over other Asia-Pacific countries.

 

“Although dependent on prevailing exchange rates, the findings clearly highlight India’s position as a competitive and attractive workforce and talent market,” said Sambhav Rakyan, Data Services Practice Leader, Asia Pacific at Towers Watson. Out of the top 11 Asia Pacific economies, the average monthly Indian starting salary was ranked ninth. “The disparity in salaries also illustrates how a large knowledge pool and a significant cost arbitrage makes India a front runner in providing outsourced services. After achieving great success in IT/ BPO, India can now become a natural choice for other sectors, like manufacturing,” he added.

Further up the ladder, wages for experienced professionals at middle management levels in India are slightly more competitive, but still below their Asia Pacific peers. Notwithstanding the recent push in its manufacturing sector and popularity of the IT sector, an engineering manager in India earns an average salary of $56,530 — almost half of his Chinese counterpart ($112,070) and one-third of his Singaporean counterpart ($151,168), the report said. “Despite a common labour market in the region, it is striking to see how divergent guaranteed cash levels remain amongst top economies,” Rakyan added.

Meanwhile, a survey by ManpowerGroup says that Indian employers have the most optimistic hiring plans for the October-December quarter, driven by government’s increased focus on ease of doing business. According to the Manpower Employment Outlook Survey released on Tuesday, employers expect the hiring pace to remain robust in the October-December time frame. The survey covered 5,047 employers across India. The net employers’ outlook for the upcoming quarter stood at 41 per cent, indicating that hiring confidence remained buoyant and job seekers are expected to benefit from strong labour market activity.

“With increased focus of the government on the ease of doing business, many multinational corporations find a conducive investment climate in the country, resulting in creation of employment opportunities and business growth,” ManpowerGroup India Group Managing Director A G Rao said. The bullish hiring plans were mainly driven by e-commerce giants, who are in the process of ramping up workforce across various functions, particularly engineers and other specialists with an intention to be technology, product and engineering-driven companies, Rao added. Sectorwise, the most optimistic hiring plans were reported by employers in the wholesale and retail trade sector and transportation and utilities sector, where net employment outlooks stood at 45 per cent and 44 per cent, respectively. From a regional perspective, employers in the eastern region anticipate the most opportunities for job seekers in the months ahead, reporting a net employment outlook of 42 per cent.

The global trend for the job market also looks positive, with employers in 36 of 42 countries and territories saying that they intend to add to their payrolls by varying margins during the October-December time frame. However, many employers are exercising caution and are refraining from aggressive hiring until they sense more meaningful indicators of a market upturn, as the pace of recovery following the recession continues to be slow and protracted globally.

Globally, employers in India and Taiwan report the strongest hiring plans. Hiring intentions in the US continue to improve, and the current outlook is the strongest since Quarter 4, 2007.  However, employer optimism dwindled in Brazil and labour market activity also slowed in China where employers forecast weakest hiring environment in more than six years. The forecast stays negative in Italy, Greece, France and Finland, the survey indicated.