With the launch of the ‘Make in India’ initiative by the Government of India and the country taking place in EY’s attractiveness survey for investment in 2015 it is interesting to explore its remuneration landscape. India’s high corporate tax has not deterred FDIs flowing in the country. Macroeconomic and political stability along with low-cost labour makes it an attractive destination for corporate expansion.
Emolument.com has analysed 3,071 salaries in India and the UK to quantify the difference in pay. We found that strategy consultants and risk professionals in the financial sector are the best paid employees in India, yet still earning three times less than their UK counterparts. The compensation gap widens in the IT sector with Indian senior developers making 5-7 times less than they would in the UK.
|Job||Title||Salary India||Bonus India||Total India||Salary UK||Bonus UK||Total UK|
|IT Advisory||Senior Consultant||£11,220||£816||£12,036||£47,000||£0||£47,000|
|Strategy Consulting||Senior Consultant||£21,522||£1,530||£23,052||£56,000||£5,000||£61,000|
|Financial Risk Management (Consulting)||Senior Consultant||£12,240||£1,096||£13,336||£50,600||£1,750||£52,350|
|Operational Transformation||Senior Consultant||£17,952||£1,530||£19,482||£49,000||£1,550||£50,550|
|Performance Improvement||Senior Consultant||£14,025||£1,948||£15,973||£45,825||£1,000||£46,825|
|External Audit||Senior Consultant||£10,363||£1,032||£11,395||£44,000||£0||£44,000|
|Business Process Management||Senior Consultant||£12,750||£867||£13,617||£46,000||£300||£46,300|
|Middle & Back Office||Associate||£7,650||£714||£8,364||£45,000||£3,000||£48,000|
|Software Development (Finance)||Senior Developer||£14,892||£1,020||£15,912||£72,750||£8,000||£80,750|
|Software Development (Tech & Telecoms)||Senior Developer||£9,297||£0||£9,297||£50,000||£0||£50,000|
|Software Development (Apps, Web)||Senior Developer||£7,905||£0||£7,905||£52,000||£0||£52,000|
|Software Development (Consulting)||Senior Developer||£8,160||£0||£8,160||£50,000||£0||£50,000|
Table 1. Showing Median Salary & Bonus
The large gap in IT. Senior software developers earn 5-7 times more in the UK compared to India. Being a software developer in the Financial Services pays the most in both countries compared to other sectors.
Risk it to get the biscuit. Risk professionals are relatively well remunerated in India with pay ‘only’ three times less than their UK colleagues. Again, finance offers the highest earnings compared to consulting. Highly incentivised, Indian staff earn large bonuses: Risk professionals in the financial sector are paid bonuses amounting to 12% of total compensation, similar to 11% in the UK. As for risk management in the consulting industry, bonuses are respectively 8% and 3% of total pay.
The highs and lows of consulting. Strategy consultants earn the most in both countries and their bonuses are at 6% (India) and 8% (UK) of total compensation. IT consulting and audit consultants’ compensation is on the lower end of the pay range both in India and the UK.
Alice Leguay, Co-Founder & COO at Emolument.com said:
‘The cost of living in India is one of the lowest globally while the UK is one of the most expensive places to live. This can partly explain the difference in salary. However with ever-increasing imports, Indian purchasing power is likely to be pushed down. Global companies in the meantime are outsourcing more and more of their non-client facing activities to India (amongst other countries) making huge savings on staff costs. We expect this phenomenon to increase as companies across all industries recruit highly educated technical staff locally to deal with key value-add processes such as research and analytics.’