Same job, different salary: India versus the UK

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.

We have 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.

 

Highest MD Salaries in Banking Specialisms

 
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
Risk (Finance) Associate 18,360 2,448 20,808 60,000 6,000 66,000
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
Human Resources Manager 15,810 510 16,320 44,000 1,500 45,500
 

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.

Same same, but very different

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.

Emolument provides bonus and salary statistics based on data submitted directly by professionals like you. It is free, anonymous, and already a trusted tool for thousands of professionals worldwide. Are you paid enough? Click here to find out now.

 

Emolument provides bonus and salary statistics based on data submitted directly by professionals like you. It is free, anonymous, and already a trusted tool for thousands of professionals worldwide. Are you paid enough? Click here to find out now.


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