Introduction
India, well-known around the globe for its rapidly evolving economy, has different types of industries contributing to the overall income. The average salary in India varies greatly depending on various factors. Understanding the dynamics of salary in India is important for everyone, including managers, HR specialists, employees, and business owners.
Are you a business owner or HR manager struggling to find out the average salary in India per month for a job role you are hiring for? Well, you have come to the right place.
In this blog, you will get a detailed analytical view of India’s average salary per month. Besides, we have made a comprehensive average salary comparison in India. So, let’s get started with this.
Understanding Minimum Wages in India- The New Wage Policy
The Minimum Wages Act of 1948 was issued to decide minimum wages rated in particular employment. The average Indian salary per month is calculated by a company’s investment to hire an employee, called CTC or Cost to Company. Initially, the Wage Act didn’t mention any specific percentage for the calculation of the basic salary. However, as per the new wage code introduced in April 2022, the basic salary of an employee can be around 50 percent of a company’s CTC.
The Act is important for every employee and employer. It can help lower the risk of exploitation and employees can ensure getting a decent salary for their contributions.
What Is A Decent Salary In India?
What is the Average Salary in India?
A nation’s average salary is a crucial indicator of the standard of living of citizens and it is quite impressive in India. As of 2024, in India, the average annual salary in india can go up to Rs. 9,30,000 per annum. The average monthly salary in india can go up to Rs. 32,000. Salaries generally range from Rs. 10,000 to Rs. 1,40,000. Let’s understand this with a simple example. To calculate the average monthly salary, you can follow the below-listed steps:- Combine Salaries Of Every Member in a Group
- Divide The Total Salaries by The Total Members
Understanding The Salary Structures
To get a better idea about the salary structure in India, you need to understand different components, such as:
- Basic Salary: It is the core of salaries and also acts as a foundation for other major components. It doesn’t cover overtime pay, bonuses and other compensations.
- Special Allowances: Such allowances can vary from organization to organization and may cover medical allowance, conveyance, and more. It may be noted that medical allowance is taxable.
- Gratuity: It is a lump sum amount paid by the company to an employee after the completion of the service period.
- EPF – Employee Provident Fund: This is one type of retirement benefits scheme where employers and employees contribute towards a fund that is withdrawn when switching jobs or after retirement.
- Performance Bonus: It is generally given to employees to motivate them and it can be a certain percentage of the basic salary.
- DA or Dearness Allowance: It is generally offered to public sector pensioners and employees. It can be around 5 percent of the CTC.
- TA: Travel allowance is given by employees by employers to cover the expenses related to business travel. It can cover the expenses of train tickets, meals, hotel stays, air tickets. etc.
- HRA- House rent allowance is paid to help employees meet the monthly rental costs for accommodation or housing. It can offer tax benefits.
Factors That Play a Crucial Role In Deciding Salaries
- Work Experience
A person’s experience decides the salary. The rule is quite simple here. If you have 6 years of experience in a particular field, you will get a higher salary compared to a person with 4 years of experience in the same field. Besides, this will also determine the salary increment rate. - Industry
Industries such as healthcare, IT, and finance enjoy a rising demand, and these industries pay well. On the other hand, employees in retail and agriculture may get a lower salary. - Location of Job
A teacher in Kolkata, Delhi or Mumbai will get a higher salary compared to one in Indore or Chennai. The reason behind this is the high cost of living and the number of companies available in major cities. - Education
With a higher level of education, one can explore better job opportunities. Higher education also helps in job promotion by offering you better skills and knowledge. - Government Policies
Labor regulations and minimum wage policies issued by the government set a baseline for monthly salary and can influence the salary structure of a company. - Inflation and Foreign Exchange
The current value of INR with major currencies such as USD or $ is another vital factor to consider while determining salary in India. If the inflation rate is high, it can increase the cost of living. And it can force companies to adjust salaries to maintain purchasing power.
Recent Trends In Salaries in India
- The median salary in India is projected to increase by around 9.5 percent in the year 2025.
- Indian pharmaceutical industry would witness the highest salary increase, i.e., 10 percent, followed by manufacturing (9.9 percent) and insurance (9.7 percent).
- Variable payouts are forecasted to remain consistent at around 12 percent in 2025.
Comparison Of Average Salary in India
You can easily find India’s average sa
lary per month; what an employee gets will vary based on many factors. For example, location, age, gender, qualification and more. Here, we have compared the average salaries based on all these important parameters.
- By Location
The geographical locations can lead to major variations in average salaries in India. The current demand for a particular skill, the cost of living, and the regional economic situation- all these are deciding factors. Have a look at the below table for more information.
| Location | Average Monthly Salary |
| Bangalore | Rs. 60,000 (708 USD) |
| Mumbai | Rs. 55, 000 (649 USD) |
| Delhi | Rs. 41,000 (484 USD) |
| Kolkata | Rs. 50,000 (590 USD) |
| Pune | Rs. 48,000 (566 USD) |
| Jaipur | Rs. 36,000 (425 USD) |
| Ahmedabad | Rs. 35,000 (413 USD) |
| Chandigarh | Rs. 39,600 (467 USD) |
| Vadodara | Rs. 40,000 (472 USD) |
| Indore | Rs. 35,900 (423 USD) |
| Punjab | Rs. 20, 000 (236 USD) |
| Tripura | Rs. 17,000 (200 USD) |
| Sikkim | Rs. 18,000 ( 212 USD) |
| Orissa | Rs. 18, 500 (218 USD) |
If you are searching for a higher-paying job role, shifting to metropolitan cities can be an excellent option. For example, Bangalore is well-known in India as the Silicon Valley. Here, the average monthly salary of an IT expert is more than in other cities. On the other hand, if you want to make a career in Finance, Mumbai would be the best location as it is the Financial capital of India.
- By Education
The educational qualification of a person can influence the average annual salary in India. With higher educational qualifications, you can get a good salary. Here is the average salary based on the educational level.
| Educational Level | Average Yearly Salary (Approx) |
| Below high schools | Rs. 1,112,400 (13132 USD) |
| High school | Rs. 1, 150,000 (13576 USD) |
| Doctorate degree | Rs. 2,752,400 (32494 USD) |
| Bachelor’s degree | Rs. 1,690,500 (19957 USD) |
| Master’s degree | Rs. 2, 120,100 (25029 USD) |
As per the above table, employees with doctorate degrees can get higher incomes compared to other employees.
- By Profession
Pay structures in different sectors vary based on the skills requirements, demand, and supply. The average salaries will differ based on the type of job and job profile. Have a look at the average salary comparison among different popular professions.
| Profession | Average Salary Per Annum |
| Marketing manager | Rs. 8 lakh (9443 USD) |
| Medical professionals | Rs. 10 to 12 lakh (11804 USD to 14164 USD) |
| Chartered accountant | Rs. 9 lakh ( 10604 USD) |
| Data scientist | Rs. 9.5 lakh (11214 USD) |
| Blockchain developer | Rs. 8 lakh (9443 USD) |
| Machine learning professionals | Rs. 7 lakh (8263 USD) |
| Investment banker | Rs. 9.5 lakh (11214 USD) |
| Product management | Rs. 14 lakh (16556 USD) |
| Software developer | Rs. 7 lakh (8263 USD) |
| Legal Advisor | Rs. 5 lakh (5902 USD) |
| HR manager | Rs. 6.96 lakh (8215 USD) |
| Interior designer | Rs. 3 lakh (3541 USD) |
| Teacher | Rs. 6 lakh (7082 USD) |
| Content Writer | Rs. 3.5 lakh (4131 USD) |
| Lead developer | Rs. 2.6 lakh (3069 USD) |
- By Experience
Experience is a vital component that affects the average monthly salary. As employees gain experience, their monthly salary increases. Check the below comparison table to know how experience influences salary.
| Years of Work Experience | Average Increments |
| 2 to 5 years | Around 32 percent |
| 5 to 10 years | Around 36 percent |
| 10 to 15 years | 21 percent |
| 15 to 20 years | 14 percent |
| 20 years+ | 9 percent |
- By Age
An individual joins a company as an intern and gradually moves up with the experience. With better skills and knowledge, you can acquire a top position at a young age. Check the below table to know the average salary in India based on age.
| Age | 10 % | 75% | 90% | Average Monthly Salary |
| <24 years | Rs. 3,900 | Rs. 11,935 | Rs. 3900 | |
| 25 to 34 | Rs. 3,900 | Rs. 14,500 | Rs. 25, 180 | Rs. 10, 770 |
| 35 to 44 | Rs. 3,900 | Rs. 18,400 | Rs. 33,600 | Rs. 13,700 |
| 45 to 54 | Rs. 3,900 | Rs. 15, 970 | Rs. 30,670 | Rs. 11,930 |
| Above 55 | Rs. 3,900 | Rs. 13,870 | Rs. 25,000 | Rs. 10,360 |
- By Gender
As per a survey conducted by the International Labour Organization, men’s average monthly salary is four times more than the average salary of women a decade ago. The current scenario looks quite better.
| Gender | Average Salary In India Per Year |
| Female | Rs. 1,520,200 |
| Male | Rs. 1,953,000 |
In India, even though things are improving, gender still influences average salaries in different areas. Women generally earn less than men even though the roles are the same. This factor creates a gender wage gap.
Avg. Salaries Across Different Sectors
IT and Software Development
Getting a job in the IT and software development sector can allow you to earn an average salary of Rs. 3, 00,000 – 5,00,000 per annum in India. Software developers with 3 to 4 years of experience can get up to Rs. 90,00,00 per year. The average salary for a data analytics role ranges from Rs. 2.5 lakh to Rs. 15 lakh per annum. UX designers can get up to Rs. 12 lakh per year.Finance and Banking
The average yearly salary in the finance and banking sector in India is around Rs. 3,76,000. For entry-level job roles, companies offer Rs. 2,50,000 per annum. Finance managers can get an average salary of Rs. 16,00,000 per year, and for branch managers, it is Rs. 15,00,000.Healthcare and Pharmaceutical
As per the latest salaries offered by top pharma companies, the average salary ranges between Rs. 20,000 to Rs. 5 lakhs. A job in the quality assurance department can offer an average remuneration of up to Rs. 4.5 lakhs per year. A pharmaceutical research and development expert can earn up to Rs. 3.5 lakhs per annum. Some of the demanding skills in this industry are production, product development, pharmaceutical sales, and API.Manufacturing and Engineering
The average base pay in the manufacturing and engineering industry in India can range between Rs. 2 lakhs to Rs. 11 lakhs per year. The average pay for a project manager role ranges between Rs. 1.8 lakhs to Rs. 10 lakhs per year. Quality assurance managers get Rs. 1.9 lakh to Rs. 10 lakhs per annum. Popular skills in this industry are lean process engineering, lean manufacturing, aerospace, and AutoCAD.Education and Research
In this industry, the average salary ranges from Rs. 3 lakhs to Rs 17 lakhs based on the job role and location. High school teachers’ salaries range between Rs. 1,23,000 to Rs. 7,80,000 per annum. The average pay scale is Rs. 3,55,000. Assistant professors get an average salary of Rs. 4,60,000. Researchers’ salaries can go up to Rs. 17 lakhs per year. Average salary for a professional training specialist can go up to Rs. 6,90,000 per annum.Average Salary In India Vs. World
Transition Economies
| Countries | Average Salary | Difference in % |
| Albania | USD 1000 | 42 percent |
| Russia | USD 1250 | 54 percent |
| Georgia | USD 3300 | 82 percent |
| Poland | USD 1850 | 69.85 percent |
Developed Economies
| Countries | Average Salary | Difference in % |
| Norway | USD 4851 | Around 88 percent |
| United Kingdom | USD 7500 | Around 92.4 percent |
| United States | USD 7900 | Around 93 percent |
| Japan | USD 3700 | Around 85 percent |
Developing Economies
| Countries | Average Salary | Difference in % |
| Egypt | USD 580 | 1.54 percent |
| Vietnam | USD 740 | 21.52 percent |
| Thailand | USD 2750 | 78 percent |
| Philippines | USD 800 | 28 percent |
Annual Salary Increment Rate in India
In simple words, a salary increment is an increase in annual salary. This can be a percentage or figure. It is generally calculated yearly or half-yearly. While evaluating this, companies consider different factors like duration of service, performance, current budget, economic situation and more.
India has the most impressive salary increase. As per reports, the average rate ranges between 8.5 percent to 9.2 percent. In 2022, it was 9.8 percent. However, in 2023, it was 9.2 percent. A recent survey has informed that for 2024, the average salary increase rate in India would be around 9.0 percent. It is also predicted that most companies would go for double-digit increments.
The private sector demonstrates robust increments, and employees in financial, manufacturing, and professional services would enjoy impressive salaries.
Tax Deductions in Indian Salary
Having sufficient knowledge about the tax deduction of salary can help you come up with effective financial planning. Speaking about the Income Tax system in India, it has a progressive tax rate. That means the rate will increase when the total income rises. Have a look at the below-given table for a clear understanding of India’s new tax regime (u/s 115BAC).
Total Annual Income | Income Tax Rate |
Up to Rs. 3,00,000 | NA |
Rs. 3,00,001 to Rs. 6,00,000 | 5 percent |
Rs. 6,00,001 to Rs. 9,00,000 | 10 percent + Rs. 15,000 |
Rs. 9,00,001 to Rs. 12,00,000 | 15 percent + Rs. 45,000 |
Rs. 12,00,001 to Rs. 15,00,000 | 20 percent + Rs. 90,000 |
Rs. 15,00,001 and above | 30 percent + Rs. 1,50,000 |
Certain expenses and investments that come under Section 80C and Section 80D can also attract tax deductions. Such deductions can lower your average taxable income.
Understanding the Difference Between CTC and Take-Home Salary
A salary package generally includes CTC or Cost to the Company. It is important to understand that the take-home salary will be lower than the CTC due to taxes and other deductions. Let’s understand this with an example.
Let’s assume that your CTC is Rs. 7,00,000 per year. As per the new tax regime, the total tax amount here would be around Rs. 75,000. So, the take-home salary is Rs. 6,25,000.
Apart from this, if you have other contributions and deductions, those factors will also be considered to evaluate the take-home salary. Understanding such differences can help an individual with better financial planning and budgeting.
Conclusion
Understanding the average salary in India per month is a complex process. For that, one needs to consider all the crucial factors, including industry conditions, skills, educational qualifications, negotiation skills and more. By analyzing these factors, businesses and employees can come up with informed decisions about a salary package that is competitive and fair.
Even though the average salary is increasing gradually, it is still a little lower than in other countries. That’s why one can easily access highly skilled and qualified talents at affordable rates. It makes India a well-known destination for outsourcing. Furthermore, India’s growing economy and rapid technological advancements are now attracting global companies who are willing to pay more. If you have the right skills and qualifications, securing a job role that offers a better salary would be easier for you.
FAQs
By considering all the factors, a decent average monthly salary in India is around Rs. 30,000 to Rs. 40,000. This may include expenses related to shopping, travel, and other basic expenditures.
Roles in the executive management, technology, and medical industries offer the highest monthly salaries. Individuals can consider roles like CEOs, doctors, or IT experts to earn more in India.
Salaries in popular cities such as Bangalore and Mumbai can be higher. It can range between Rs. 8,00,000 to Rs. 12,00,000 per year. On the other hand, in smaller cities, individuals receive around Rs. 4,00,000 to Rs. 8,00,000 per year.
A 25-year-old person can earn around Rs. 25,000 to Rs. 50,000 per month in India. This will depend on the person’s experience, education, and industry.
The total earnings of a programmer in India will vary based on their experience, specific skills, and the type of organization they choose to work for. A fresher can earn up to Rs. 3,00,00 per year. A professional can make around Rs. 8,00,000 and more.
The Average Income Per person in India ranges between Rs. 9,000 to Rs. 1, 44,000 as of 2024.