Wage Woes..a reality check
These days many complain that their wages are not commensurate with their work, experience, qualification, expertise etc. Here is a reality check (all data based on first hand information and quoted in Indian rupees).
Organized sector (starting scale per month..)
Software Engineer: Rs.10-15k
BPO officer: Rs.7-12k
Retail assistant (@supermarket): Rs.8-10k
Doctor: Rs.15-25k
Teacher: Rs.8-15k
Government Employee: Rs.20k
Informal sector
Plumber: Rs.500-Rs.700 per day
Electrician: Rs.700 - Rs.2500 per job
Mason: Rs.25-40k per week's job
Nurse: Rs.7-10k p.m (full time) / Rs.200-500 per 12-hour shift (home care)
Private tutor (tuitions): Rs.30-40k p.m
The gap between the two sectors is closing in and in some cases, the skilled worker earns better than a university degree holder. Even if you look at the mid-level (Rs.20 Lacs) or senior level pay scale (Rs.50 Lacs - Rs.1 crore) in the organized sector, they are outdone by the informal sector professionals like real estate agents, traders/distributors of consumer goods and retail products.
Value creators' pay
The best value produced in economic terms is by a small scale entrepreneur, which is a dying breed in India due to high operational costs and erosion of margins by various middle-men involved in distributing the product (by contrast, small scale enterprises are an integral part of German engineering - which explains their fine precision). Similarly the highest value offered is by a nurse (with 4-year professional degree) but paid a mere Rs.200-Rs.300 per 12-hour arduous shift for providing excellent human care.
On the other end of the scale, we see people in mid-managerial private & public sector who make Rs.2000-Rs.6000 per day (>10x the nurse's pay) without adding much value and yet complaining that their wages are not commensurate with their work. India has too many engineers but less than 1% that understand true engineering. Similarly far too many MBAs with only a handful capable of actually managing businesses. A critical question that arises at this juncture is are we creating an economy that creates value? Next article examines this subject!
Organized sector (starting scale per month..)
Software Engineer: Rs.10-15k
BPO officer: Rs.7-12k
Retail assistant (@supermarket): Rs.8-10k
Doctor: Rs.15-25k
Teacher: Rs.8-15k
Government Employee: Rs.20k
Informal sector
Plumber: Rs.500-Rs.700 per day
Electrician: Rs.700 - Rs.2500 per job
Mason: Rs.25-40k per week's job
Nurse: Rs.7-10k p.m (full time) / Rs.200-500 per 12-hour shift (home care)
Private tutor (tuitions): Rs.30-40k p.m
The gap between the two sectors is closing in and in some cases, the skilled worker earns better than a university degree holder. Even if you look at the mid-level (Rs.20 Lacs) or senior level pay scale (Rs.50 Lacs - Rs.1 crore) in the organized sector, they are outdone by the informal sector professionals like real estate agents, traders/distributors of consumer goods and retail products.
Value creators' pay
The best value produced in economic terms is by a small scale entrepreneur, which is a dying breed in India due to high operational costs and erosion of margins by various middle-men involved in distributing the product (by contrast, small scale enterprises are an integral part of German engineering - which explains their fine precision). Similarly the highest value offered is by a nurse (with 4-year professional degree) but paid a mere Rs.200-Rs.300 per 12-hour arduous shift for providing excellent human care.
On the other end of the scale, we see people in mid-managerial private & public sector who make Rs.2000-Rs.6000 per day (>10x the nurse's pay) without adding much value and yet complaining that their wages are not commensurate with their work. India has too many engineers but less than 1% that understand true engineering. Similarly far too many MBAs with only a handful capable of actually managing businesses. A critical question that arises at this juncture is are we creating an economy that creates value? Next article examines this subject!
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