Average Salary In India 2025

The Indian economy is developing as each day passes by and has both challenges and opportunities. With its large population and growing middle class, it has a lot of potential for growth.

According to a report by Salary Explorer, in 2025 the average salary in India is 32,000 INR per month, offering an annual income of 384,000 INR. This reflects a steady and reliable earning potential, providing a solid foundation for personal growth and financial stability. With opportunities for career advancement, this figure highlights India’s growing economy and its ability to offer competitive salaries in various sectors.

In the professional world, especially within service-based industries, understanding the distinction between billable and non-billable hours is essential for accurate median salary calculations. employe monitoring software can help make this easier by accurately tracking both billable and non-billable hours.

The average salary in India per month depends on several factors such as factors like industry, location, experience, and education. Since India is a developing country, the average salary in India is much lesser compared to developed countries like the USA, UK, and Russia.

In this blog, we’ll explore the average Indian salary, compare it with other countries, and examine the minimum wage. We’ll also dive into the top three industries frequently outsourced to India, revealing why the country remains a global outsourcing hub.

What Is Average Salary?

The typical income earned by workers in a specific industry, economy, or region over a given time period is referred to as the average salary. It gives us an idea of how much people generally earn in that specific group.

Let’s Understand with an Example:

To find the average salary, we follow these steps:

1) Add Up All the Salaries:

30, 000+40, 000+25, 000+35, 000+28, 000=158, 000

2) Divide by the Number of People:

158, 000/ 5=31, 600

So, in this example, the average salary for the group is INR 31, 600. This number gives a general sense of how much each person typically earns in this group.

Several factors can influence a person’s monthly income, such as different project billing types. For instance, if the billing type is set to hourly, employees will be paid according to the hours they work on a specific project, which may fluctuate from month to month. However, this will not impact their average salary.

Considering all these small fluctuations, manually calculating billable hours each month can become a daunting task, but automated project time tracking tools like Desklog with project billing features simplify this process, providing an accurate distinction between total billable and non-billable hours.

Salary Ranges In India

The average salary in India per month can vary a lot depending on the job and industry. Some workers might earn as little as 8, 080 INR per month, especially in entry-level jobs or lower-paying sectors. On the other hand, experienced professionals or those in specialized roles can make up to 143, 000 INR per month. This wide range shows how different jobs and industries can have very different pay levels in India.

What is the Indian Median Salary?

India’s median salary is 27,300 INR per month, but what exactly does “median salary” mean? The median salary is the middle point in a list of salaries. If you were to line up everyone’s salary from lowest to highest, the median salary is the one right in the middle. This means that half of the people earn less than 27, 300 INR per month, and the other half earn more. The median gives a clearer picture of what most people actually earn because it isn’t affected by extremely high or low salaries.

What is the Annual salary Increment in India?

Compared to the other countries India has the highest salary increase. In 2023, the salary hike trends in India have shown significant variation across different sectors, positions, and company policies. According to reports, the average salary increment for Indian employees is between 8.5% and 9.2%, reflecting a steady growth trajectory compared to the previous two years. In 2021, the average salary increase stood at 8.8%, which then saw a rise to 9.7% in 2022. These figures indicate a consistent upward trend in salary hikes across various industries, despite fluctuations in the economic environment. And the expected Salary hike for 2025 is 9% which is comparatively good. When we take out the reports from 2020 to 2025, the average salary increment aligns in the promising range of 8.5 – 10 %. While the private sector shows robust increments, particularly in manufacturing, professional services, and financial services, the public sector remains more conservative but stable with DA adjustments. The variation across junior, mid, and senior roles also emphasizes how companies are strategically allocating salary increases to align with talent retention, employee development, and business needs.

Employee productivity and employee efficiency rates play an important role in influencing salary increments. Companies often base salary hikes on the value employees bring to the organization, such as achieving performance targets or contributing to overall business growth. Higher productivity and consistently meeting or exceeding expectations can result in larger salary increments, as businesses reward employees who demonstrate significant impact on the company’s success.

Salary Comparison In India

While it’s simple to find the average salary in a country, what you actually pay an employee can vary widely based on several key factors. These include their profession, industry, level of education, work experience, and where they’re located.

Further in this article, we’ll take a closer look at how these factors shape salaries in India, breaking down the average pay across different categories to give you a clearer picture.

1. By Profession

2. By Age

3. By Gender

4. By Education

5. By Location

6. By Experience

What Is The Minimum Wage In India ?

The minimum wage represents the lowest base salary that must be paid to an employee per day.

In India, unlike many other countries, there isn’t a uniform national minimum wage. Instead, it is determined by both the Central and State governments under the Minimum Wages Act of 1948. As a result, the minimum wage varies significantly across different Indian states.

For example, in New Delhi, the minimum wage for an unskilled worker is set at 673 INR (approximately 7.31 USD) per day. In contrast, the minimum wage in Bihar is much lower, at 304 INR (around 3.63 USD) per day.

Consequently, the average hourly or daily wage you pay your employees will vary depending on the state in which you operate.

Average Salary in India vs World

Based on factors such as unemployment rates, standards of living, and overall economic development, the United Nations categorizes countries into the following groups:

• 

  Developed Economies



Transition Economies

• 

  Developing Economies

1. Average Salary in Developed Countries

2. Average Salary in
Transition Economies

3. Average Salary in Developing Countries

The lower salary trends and cost of living in India can be attributed to several factors. As a developing economy with a lower GDP per capita, India naturally has lower average wages compared to developed countries. The cost of living is also considerably lower, including expenses for housing, food, and healthcare.

Additionally, the large labor force and varying levels of education contribute to lower average salaries. Economic policies and market competition further influence wage levels, often keeping them lower. Currency exchange rates also play a role, as the Indian Rupee’s value compared to major currencies affects salary comparisons, though local purchasing power remains relatively higher.

Industry Outsourcing in India

Estimates suggest that India holds a 44% share of the global market for outsourcing software and back-office services. Cost savings are the primary driver behind outsourcing, and India has consistently proven to be the most cost-effective option. Labor costs in countries like the US, UK, Australia and Canada are significantly higher compared to those in India.

While you can outsource nearly any task to India, here are some of the most commonly outsourced ones:

1. Information and technology (IT) services:

According to certain statistics, revenue in the IT outsourcing sector is projected to grow at an annual rate (CAGR 2025-2029) of 13.52%, reaching a market volume of USD 20.81 billion by 2029.

For example, the average salary in India for an IT services manager is around 1, 365 USD. In comparison, hiring the same role would cost approximately 5811 USD or more per month in the United Kingdom and about 6, 500 USD per month in the United States.This illustrates the significant cost differences across countries, making India an attractive option for outsourcing.

You can outsource IT services like technical support, software development, and website and mobile app development to India.

2. Business Process Outsourcing

According to a report, the business process outsourcing (BPO) market, valued at USD 6, 077.36 million in 2022, will reach USD 12, 378.73 million by 2030, growing at a CAGR of 9.3% during the forecast period of 2023 to 2030.

India is a leading outsourcing destination for customer care services, largely due to its low average salary for BPO workers.

For instance, the average Indian salary for a call center agent is around 201 USD. In contrast, hiring the same role would cost approximately 350 USD per month in South Africa and 420 USD per month in Brazil.

3. Knowledge process outsourcing (KPO)

KPO (Knowledge Process Outsourcing) centers on delivering knowledge-driven services, like data analytics and information technology, to assist in core business operations.

Managing large volumes of data demands extensive resources and a skilled workforce. Due to low average salary in India, outsourcing KPO services to the country allows you to access these services at a much lower cost.

The average Indian salary for a data analyst is around 666 USD. In comparison, hiring a data analyst would cost significantly more in other popular outsourcing destinations, such as Malaysia (800 USD per month) and the Czech Republic (1, 200 USD per month).

You can monitor the productivity and performance of your outsourced employees by using time tracking software.

Moreover, with Desklog’s automated timesheetyou can simplify payroll management and can effortlessly handle salary payments in various currencies.

Conclusion

While the average salary in India per month is gradually rising, it remains lower than in many other countries. This makes it possible to access a skilled workforce at cost-effective rates, which is why India continues to be a favored destination for outsourcing.

Additionally, the country’s growing economy, expanding middle class, and emphasis on education and technology continue to attract global companies. As these trends persist, India’s role in the global marketplace is likely to strengthen, offering even more opportunities for both local professionals and international businesses.