Indian Salaries: Comparing Apple with Oranges!


Today news of India being one of the lowest IT paymasters is splashed across the media. Do you think that comparing US salaries with Indian salaries is fair or for that matter even comparing it to any country’s salaries is fair?

I think not!

According to the IT Pay around the World Survey 2007 rankings by Mercer, India stands at 4th from bottom just about Vietnam, Bulgaria and Phillipines in terms of salaries of IT managers world wide.
Here is the complete list of Top 10 and bottom 10 country rankings:

IT Managers: Lowest paymasters

IT Manager: 10 lowest-paying countries (various currencies)
1  Vietnam 15,470 15,470 12,180 8,140
2 Bulgaria 34,25o 22,240 17,510 11,700
3 Philippines 1,106,700 22,280 17,540 11,720
5 Indonesia 289,155,000 31,720 24,970 16,690
6 China (Shanghai) 265,810 33,770 26,580 17,770
7 Malaysia 129,930 35,260 28,040 18,740
8 Czech Republic 791,430 35,880 28,250 18,880
9 China (Beijing) 285,130 36,220 28,520 19,060
10 Argentina 133,040 43,180 33,990 22,720

IT Managers: Top paymasters

IT Manager: 10 top-paying countries (various currencies)


1  Switzerland 176,920 140,960 110,990 74,150
2 Denmark 722,310 123,080 96,890 64,750
3 Belgium 95,380 121,170 95,380 63,760
4 UK 62,180 118,190 93,090 62,180
5 Ireland 85,200 108,230 85,200 56,950
6 US 107,500 107,500 84,650 56,550
7 Germany 84,020  106,730  84,020  56,160 
8 Canada 106,000 93,860 73,870 49,370
9 Hong Kong (China) 702,720 90,340 71,120 47,530
10 Australia 115,480 88,850 69,950 46,740

The survey should have taken into consideration, the standard of living across various countries as that is the only way one can make a fair judgement.

Can a  family in USA live on $1000/- monthly?, however, in India, a family can live very comfortably in that kind of money.

Is it same earning 1000 dollars monthly in HongKong to earning 1000 dollars here in India. No absolutely not!

The most surprsing part is the way media projects it. Read this “IT does not pay: India lowest paymaster”. What should one make by reading this headline?

Aren’t you comparing Apple to Oranges?
  1. trakin says

    @Philip you are so right, I have publsihed many posts earlier showing proof of how badly mainstream media reports. Their articles are badly researched and purely based on Hearsay…
    Take examples of google phone launch news or the Internet numbers…and thats why alternate media like us bloggers play an extremely important role in creating the right picture….

    @Srikant..Nice to see you drop by an comment. yes, you are absolutely right..I have put up small post on India's purchasing power parity earlier:
    Indian Purchasing Power Parity to overtake Japan by 2025

  2. Indian Blogger says

    This is from the Economist. I read it in the morning today.

    RELOCATING staff to Switzerland is unlikely to keep down wages in a firm's information-technology department. IT managers there raked in an average of $140,960 last year, making them the highest paid in the 35 countries surveyed by Mercer, a consultancy. European countries take six places in the top ten. It is clear why so many IT jobs are outsourced to developing countries. Managers in India earn just $25,000 a year. Only companies in Vietnam, Bulgaria and the Philippines pay less. AFP

  3. Srikant says

    The correct metric to use is the purchasing power parity (PPP) as that is a good indicator of the buying power of a currency.

  4. Sumedh says

    hahaha :)

  5. Philip says

    The most sensationalist headlines rule. That's why the media is made up of morons. They have a simple brief. Write articles with the most bombastic words and headlines. Afterall the aim is to grab as much eyeballs as possible.
    I doubt if anyone proof reads their articles before they are posted/printed.  

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