Indian workers earn 81% less than Chinese, says study

Bengaluru, June 7: A new survey has revealed that Indian workers are paid significantly lower salaries compared to their peers in China. This makes India a cost competitive nation compared to China.

According to a research by global advisory, broking and solutions company Willis Towers Watson, annual base salaries in India are the lowest in the Asia Pacific region and significantly lower than China. China's base salaries across all job grades are between 64% and 100% higher than in India. The finding supports India's emerging reputation as being a cost competitive labour market in the region.

The findings in the APAC section of Willis Towers Watson's 2015-16 Global 50 Remuneration Planning Report enable cross-country pay competitiveness comparisons across the region, by providing base salary infor mation using a consistent framework for job levels.

At an APAC level, entry-level salaries for white-collar professionals are among the lowest in India and the Philippines at an average annual base salary of approximately $11,000. Their peers in China receive almost twice as much. The story at senior management levels is not much different. At approximately $66,000, India offers the lowest average annual base salary across the region, which is almost half that of China.

“Labour costs are always a significant contributor to decisions around potential foreign investments. A young and techsavvy workforce and comparatively lower salaries, especially at the entry level, augur well for India’s quest to attract investments and emerge as a top manufacturing destination,” Sambhav Rakyan, data services practice leader, Asia Pacific at Willis Towers Watson said.

These factors, combined with a focus on skilling, could give India an advantage in comparison to China, where an ageing population and shrinking workforce mean salaries will remain higher, he said.

China salaries are notably higher across levels as compared to India - 81% higher at entry-level, 84% higher at midlevel, double at senior level and 64% at top management level, the research said.

In terms of highest paying countries, Australia tops at entry and mid-management levels while Singapore tops at senior and top management levels. The Willis Towers Watson 2015/2016 Global 50 Remuneration Planning Report is a comprehensive global compensation and benefits planning tool for companies operating in disparate markets and multicultural legislative environments.