New Delhi: As India is set to emerge the world's biggest “back-office” country, the trend takes the charm away from government jobs with salaries in private sector higher by as much as two times.
According to salary tracking firm PayScale, the median annual salary in a private sector company currently stands at Rs 5,65,214 compared to Rs 2,45,745 in the government entities.
The scenario is a far cry from those at the time of independence, when in early 1950s various government departments were established and public sector salaries used to be among the most attractive.
Yet, today wages for some of the highest government offices—including the President of India and Reserve Bank of India—are lower than even mid-level executives at various private sector firms.
The initial salary of the President of India—the constitutional head of the country — was fixed at Rs 10,000 per month, which was considered to be among the highest for any office bearer at that time.
However, the President currently earns a monthly salary of just Rs 50,000, a level to which it was raised with effect from 1996, which pales in comparison to the lakhs being paid to senior level private sector executives.
Similarly, the RBI Governor used to get a monthly salary of about Rs 7,500 after independence, while the then Secretary and Treasurer of the Imperial Bank, now known as State Bank of India, was paid Rs 4,000 a month. In contrast, the biggest of private sector firms paid a salary of just about Rs 5,000 to their General Managers and Managing Directors making the government salaries much more attractive.
Indian Inc salary to increase by 17 per cent
The salary doled out by India Inc could increase by average 17 per cent in the current year, says a new survey.
"The average salary increase in 2006 was 14-16 percent, and the report suggests it could be as high as 17 percent in 2007," said SVB Global, the international arm of financial services company SVB Financial Group in its study "Compensation and Benefits Industry Survey, 2007".
The survey conducted in collaboration with research and consulting firm, Zinnov on HR practices of 31 product development companies with operations in Bangalore, Pune and Hyderabad adds, the IT capital of India, Bangalore has the deepest product development talent pool while Hyderabad offers the highest salaries.
The survey points out the lack of leadership in the middle-management and continued cost escalations for the big shots of IT talent pool as some of the main workforce challenges that India Inc faces.
"Lack of middle-management leadership, an overflow of entry-level and mid-level engineers and continued cost escalations for the top 20th percentile of the information technology talent pool are among the key workforce challenges that the Indian market faces," said SVB Global in a release
issued through AsiaNet.
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