Why Fresh Graduates in India are Underpaid?

Madhu Prasad
1 min readFeb 6, 2024

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Do you know why fresh graduates are Underpaid in India?

When top companies hire Indians from IIT/IIM or other top institutes, they offer 25 LPA as a starting salary.

If the same individuals go abroad and work in a country like Singapore, they are paid 100,000 Singaporean dollars.

Why is this big difference?

You might say it is because of the Purchasing Power Parity (PPP) difference.

However, this economic explanation holds untrue in Indian context

Because the PPP ratio is brought down aggressively without logical justification

For instance, imagine you are earning 20 LPA and decide to leave your job.

Unfortunately, there will be 100 other candidates with same capabilities as you, willing to replace you for a lower salary

This oversupply of skilled intellectual workers creates a scenario where companies can offer lower salaries for Indian talents compared to other countries like the US, Singapore, the UK, etc.

#job #salary #hiring #professionalgrowth

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