Avg an­nual salaries across sec­tors, cities down by 30%, says study

Financial Chronicle - - FRONT PAGE - SANGEETHA G

AN­NUAL salaries across sec­tors and cities have come down this year by around 30 per cent, finds a sur­vey by Rand­stad In­dia. While the av­er­age an­nual cost to com­pany of­fered by the high­est pay­ing sec­tor is down from Rs 11.3 lakh to Rs 9.6 lakh, the high­est pay­ing city saw a drop from Rs 14.8 lakh to Rs 10.6 lakh.

As per the salary trends re­port by Rand­stad, pro­fes­sion­als in pharma and health­care in­dus­try topped the chart of high­est pay­ing sec­tors, pay­ing an av­er­age an­nual CTC of Rs 9.6 lakh across all lev­els and func­tions. Last year, FMCG had topped the list with av­er­age an­nual CTC of Rs 11.3 lakh. FMCG, which is at the third slot this time, is of­fer­ing only Rs 9.2 lakh. IT sec­tor, which has fallen to fourth po­si­tion this year from last year’s third spot, is pay­ing Rs 9.1 lakh against Rs 9.3 lakh last year.

In case of cities, the IT cap­i­tal Ban­ga­lore re­tained its top po­si­tion as the high­est pay­ing city in the coun­try, with an av­er­age an­nual CTC for tal­ent across all lev­els and func­tions at Rs 10.8 lakh. How­ever, the an­nual CTC of the city came down 26 per cent this year from last year’s Rs 14.6 lakh.

On an av­er­age, there is a 30 per cent drop in salaries across sec­tors and re­gions, finds Rand­stad. If the av­er­age an­nual salary was Rs 13 lakh last year across sec­tors and re­gions, it has come down to Rs 9 lakh.

The av­er­age salaries have shown a down­ward trend from last year ow­ing to the twin phe­nom­e­non of a de­cline in mid-level roles and an in­crease in the num­ber of en­try-level roles. The en­try-level roles of the jobs an­a­lysed in­creased from 38 per cent last year to 51 per cent this year, thereby push­ing down the over­all salaries. Though more jobs in the en­try-level have brought down the av­er­age salaries, Rand­stad finds this will cre­ate a larger tal­ent pool and will be good for the in­dus­try in the fu­ture.

Fur­ther, in sec­tors like IT, the tra­di­tional jobs have wit­nessed a drop in salaries by 8 to 15 per cent. While the new tech­nol­ogy jobs have found them­selves a place in the “hot jobs” list, the largest chunk of jobs in the IT sec­tors are still the tra­di­tional ones.

Apart from spe­cial­ist doc­tors top­ping the chart of ‘hot jobs,’ most of the other jobs fell under the cat­e­gory of ‘new tech­nol­ogy.’ This in­cluded so­lu­tions ar­chi­tects, prod­uct en­gi­neer­ing spe­cial­ists, blockchain ex­perts, iOS spe­cial­ists, ar­ti­fi­cial in­tel­li­gence/ma­chine learn­ing spe­cial­ists, AWS spe­cial­ists, robotics process au­to­ma­tion, core java pro­fes­sion­als and an­droid en­gi­neers.

A spe­cial­ist doc­tor with six to 10 years of ex­pe­ri­ence earns an av­er­age cost to com­pany of Rs 18.4 lakh due to the higher re­quire­ment of these pro­fes­sion­als in the health­care space. Due to the in­crease in de­mand for spe­cial­ist doc­tors and pro­fes­sion­als with R&D skills, pharma and health­care also topped the chart of sec­tors that paid the high­est. So­lu­tions ar­chi­tects drew an av­er­age an­nual CTC of Rs 15.1 lakh fol­lowed by prod­uct en­gi­neer­ing spe­cial­ists with Rs 14.8 lakh.

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