Wage Gap Rising in India, Will Rise Further

The Indian economy may be growing up at a fast clip but it’s not lifting all boats equally.

Management consultancy firm Hay Group has put out a new report that the wage gap between managers and clerks is increasing in India.

The pay gap multiple between managers and clerks in India is 7.4 in 2007. This means that the gross base salary of managers is 7.4 times that of clerks in India.

The wage gap multiple was 7.0 in 2006 and 6.3 in 2005.

We think the gap is likely to persist and grow in India as the demand for managers outstrips supply and more companies start adopting American style of corporate management with a few managers skimming off much of the cream.

India ranks fifth in wage gap in Hay’s survey of 13 countries. Vietnam, Thailand, China and Indonesia were ahead of India with higher wage gaps between managers and clerks.

But Singapore, Australia, New Zealand, South Korea, Hong Kong, Phillipines, Malaysia and Taiwan had lower wage gap than India.

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