Are You Getting the Right Salary? A 2025 Data-Backed Guide for Private Sector Employees in India

Salary is the most visible outcome of a career, yet most employees don’t have a clear, objective method to check whether they’re being paid fairly relative to their role, industry, location, education, and skills. This comprehensive guide explains how to evaluate “right salary” using current Indian data from government and trusted agencies, then walks through practical steps to close gaps. It also includes a ready-to-use Excel salary calculator template you can adapt for your audience.

Every section below is supported by authentic sources so readers can rely on verified, current figures rather than hearsay or peer comparisons.

Note: All data points include inline citations to their sources.

What “Right Salary” Means in 2025

A “right salary” is the compensation that aligns with:

The realities of the labor market for a given role and industry
Regional cost and demand differences across cities
One’s education, skills, and experience maturity
Company compensation policy and performance banding
Negotiation leverage and comparable offers

To make this concrete, we start with authoritative benchmarks.

Key Salary Benchmarks and Trends (India, 2024–2025)

As per the Periodic Labour Force Survey (PLFS) by the Ministry of Statistics and Programme Implementation (MoSPI), average regular wage/salary earnings per month for regular wage/salaried employees in current weekly status rose from Rs 16,848 in April–June 2018 to Rs 20,039 in April–June 2023, indicating an 18.94% increase over that period.pib
MoSPI publishes annual and quarterly PLFS releases with wage metrics and breakdowns; the 2022–23 annual report provides employment indicators and context on hours worked and earnings, useful to frame wage trends by rural/urban and gender.mospi+1
MoSPI’s portal also provides “average wage/salary earnings during the preceding calendar month” for regular wage/salaried workers, useful for tracking levels by worker category and time period.mospi
For forward-looking increments, Aon’s India Annual Salary Increase & Turnover Survey projects average salary increments stabilizing at about 9.2% in 2025 (surveying 1,400+ companies across 45 industries), with higher increases in engineering design services and auto/vehicle manufacturing, and strong momentum across NBFCs, retail, GCCs, and life sciences.ibef+1
TeamLease’s 2025–26 Jobs and Salaries Primer projects average hikes of 6.2%–11.3% across industries, with some role-level increases reaching up to 13.8%, signaling city- and role-specific variations and a tilt toward skill-based pay.group.teamlease+1

These markers set national context. Next, translate them to individual “fit.”

The 10 Drivers of Pay: Why Classmates Earn Differently

Company: Compensation bands vary widely by MNCs vs. GCCs vs. startups vs. SMEs; pay also differs by profitability cycles.economictimes.indiatimes+1
Industry: Sector economics drive median pay and increments; 2025 forecasts point to higher hikes in engineering design services, auto manufacturing, NBFCs, retail, GCCs, and life sciences.outlookmoney+2
Location: Metro hubs (Bengaluru, Mumbai, Hyderabad, Delhi-NCR, Pune) command premium salaries and sometimes higher increments due to demand concentration and cost levels.economictimes.indiatimes
Job Profile: Technical and business-critical roles often out-earn generalist or back-office roles, with role-specific increments crossing top-of-range thresholds in growth areas.economictimes.indiatimes
Education: Tier-1 institutes and specialized programs open doors to higher-paying firms and roles, affecting initial bands; the impact narrows with experience if skills are upgraded.
Skills & Certifications: Demonstrable skill depth (cloud, data, cybersecurity, EV systems, advanced manufacturing) directly affects pay bands in 2025’s skill-tilted hiring.economictimes.indiatimes
Experience & Age: Experience maturity (not just years) and scope of responsibility define pay within bands.
Personality & Communication: Managerial potential, stakeholder confidence, and negotiation capability influence comp outcomes.
Health & Sustainability: Ability to handle demanding or travel-heavy roles can impact eligibility for higher-paying assignments.
References & Sponsors: Credible endorsements affect internal mobility and external offers.

The remainder of this guide converts these drivers into practical tools: sector benchmarks, role ladders, and a salary calculator matrix.

Sector Deep Dives: 2025 Salary Context and What Moves the Needle

The figures below synthesize public benchmarks and forecast trends. Use them to anchor discussions and then refine with company-specific ranges via internal HR bands or reputable salary platforms.

1) Information Technology & Global Capability Centers (GCCs)

Context and trends:

Increments in 2025 are steady but rationalized; engineering design services within tech-adjacent segments are projected for higher hikes, and GCCs remain in the top tier for increases, reflecting sustained demand for specialized skills.ibef+1
Skill premiums persist for cloud, data, security, platform engineering, and AI/ML ops; role-level increases can exceed averages in high-demand niches.economictimes.indiatimes

What this means:

Entry-level software roles in services firms may see modest bands, while product/GCC roles and specialized stacks pay higher within the same experience band.
City premium applies in Bengaluru, Hyderabad, Pune, and Gurgaon; internal leveling (IC vs. lead/architect) determines big deltas.

How to move up bands:

Stack depth (e.g., Kubernetes, Terraform, cost optimization on cloud), production-scale experience, and credentials (AWS/GCP/Azure Pro, security certs) strongly influence offers.economictimes.indiatimes

Ground reality check:

Validate against quarterly and annual PLFS aggregates to contextualize average salary levels across the broader market, noting private-sector tech salaries sit above the overall average.dge+2

2) Banking, Financial Services, NBFCs, and Fintech

Context and trends:

2025 hikes are projected to be solid in NBFCs, with BFSI remaining healthy; risk, regulatory tech, analytics, and specialized product roles command premiums.outlookmoney+2

What this means:

Relationship-heavy roles vary by region and book size; quant, risk, and product roles in metro hubs command higher ranges.
Variable pay (bonuses) can form a significant portion for sales and investment roles; risk and compliance premiums align with tightening regulatory environments.

How to move up bands:

Certifications (CFA, FRM), domain tech stacks (Core banking APIs, payments, risk modeling), and strong performance metrics lift compensation negotiations.economictimes.indiatimes

Ground reality check:

Wage trends at the national level remain upward over time, but BFSI outpaces the overall PLFS averages due to sector economics.pib+2

3) Manufacturing and Auto/EV

Context and trends:

Auto/vehicle manufacturing and EV infrastructure are among the top sectors projected for higher 2025 increments, reflecting capex cycles and new-tech adoption.group.teamlease+3

What this means:

Core engineering roles (mechanical/electrical design, process, quality) and EV system skills (BMS, power electronics) see stronger increases; plant roles vary by region and shift structures.
Tier-1 vendors and MNCs pay better than smaller units; safety, lean, and automation exposure is a differentiator.

How to move up bands:

Certifications in Six Sigma, industrial automation, and EV systems; exposure to smart factory/Industry 4.0 and reliability engineering improves pay prospects.group.teamlease+1

Ground reality check:

Manufacturing salaries can sit closer to national aggregates at entry but escalate with specialized experience aligned to EV and automation priorities.mospi+2

4) Healthcare & Life Sciences

Context and trends:

Life sciences is among sectors expected to see solid increases; demand continues across pharma services, clinical research, quality, and regulatory functions.ibef+2

What this means:

Clinical roles vary by license and specialization; pharma QA/RA and data management in CROs show higher bands within the segment.
GCC and global pharma captive units offer higher compensation for regulatory, pharmacovigilance, and data roles.

How to move up bands:

Specialized credentials (regulatory, GxP, statistical programming), domain software (SAS, R, eCTD), and trial operations experience are valued in global-facing teams.economictimes.indiatimes

Ground reality check:

While the national wage baseline rises steadily, healthcare/life sciences premium is role- and license-dependent.dge+2

5) Retail, Consumer, and Sales

Context and trends:

Retail is projected to witness healthy increments; consumer-facing roles with measurable P&L impact (category management, key account management, high-performance field sales) attract stronger variable pay.outlookmoney+2

What this means:

Metro and high-demand regions offer higher on-target earnings; structured incentives can significantly change take-home pay.

How to move up bands:

Demonstrable sales productivity, category growth records, and modern trade e-commerce interface experience can move candidates up pay brackets.economictimes.indiatimes

6) Consulting and Professional Services

Context and trends:

Consulting tracks (strategy, risk, digital transformation) tend to pay above market medians, but are highly performance and utilization linked; attrition moderation in 2024 and stabilization in 2025 helps normalize bands.ibef+1

What this means:

Tiered leveling (Analyst/Associate/Consultant/Manager) and practice areas define pay; digital and analytics-heavy practices carry premiums.

How to move up bands:

Case-interview strength, domain credentials, and client development history drive jumps; cross-industry digital programs add leverage.

Location Effects: Why City Matters

TeamLease’s projections highlight top cities for hikes such as Pune, Mumbai, Hyderabad, Bengaluru, and Gurgaon in the ~10% band, underscoring the regional lift in dynamic markets.group.teamlease+1
Metro clusters host GCCs and high-skill hubs, increasing both baseline salaries and increments for in-demand roles.economictimes.indiatimes

Practical implications:

Candidates in Tier-2/3 cities often benchmark against metro wages without adjusting for local demand, cost, and firm mix. Moving to a metro hub can raise bands, but comes with higher living costs.

Role Ladders and Leveling: Title ≠ Pay

Even within the same title, pay varies due to:

Leveling (IC vs. lead vs. manager)
Scope (project size, criticality, budgets)
Impact (revenue, cost, risk)
Scarcity (rare skills, niche tools)

Tie your position to a role ladder with clear competencies and outputs. That determines your place in the band and your next jump.

Government vs. Private vs. Self-Employed: What to Expect

PLFS aggregates show average monthly earnings rising over time for regular wage/salaried workers, reflecting long-run wage growth, but private-sector white-collar wages typically exceed national averages due to sector mix and urban concentration.pib+2
Self-employed income varies widely by domain; aggregations at national level smooth over the extremes. Use sector- and city-specific benchmarks for realistic targeting.

Tip: Always combine national baselines (PLFS) with industry/company data (Aon, TeamLease) for a realistic midpoint range.mospi+5

How to Check if Your Salary Is “Right” (Step-by-Step)

Establish a baseline using national wage indicators

Use PLFS averages to understand macro wage levels and growth; this anchors expectations before layering sector premiums.mospi+3

Layer industry increments and sector premiums

Use Aon projections (9.2% average for 2025) and TeamLease ranges (6.2%–11.3%, role-dependent) to understand 2025 dynamics in your sector.outlookmoney+2

Adjust for location

If you’re in a metro hub with concentrated demand, factor a location premium; note cities projected for higher hikes and the presence of GCCs/sector clusters.group.teamlease+1

Position yourself on the role ladder

Identify your level (IC/Lead/Manager), scope, and impact; peers at higher scope command more pay within the same title band.

Map education and skill depth

Tier-1 pedigree helps entry levels; skill depth and market-relevant certifications become the dominant factor after 3–5 years in most sectors.economictimes.indiatimes

Calibrate with actual offers and internal bands

Use internal HR bands and credible external offer data whenever possible; treat public ranges as indicators, not guarantees.

Evaluate total compensation

Include fixed, variable, retention bonuses, stock, benefits, and allowances; retail and sales roles can have large variable components.economictimes.indiatimes

A Simple Standard for “Right Salary”

A practical “right salary” test is:
Right salary = Midpoint of your target company’s comp band for your level and city ± adjustments for your skill scarcity, recent performance, and competing offers, cross-checked against sector increments and national trends.pib+3

Top Reasons for Underpayment and How to Fix Them

Company: Low-paying employer tier; consider moving to higher-paying company bands.economictimes.indiatimes
Industry: Sector with tight margins; explore adjacent higher-paying sectors (e.g., services to product/GCC, traditional auto to EV).ibef+2
Location: Tier-2 city limitations; consider metro moves if feasible.economictimes.indiatimes
Job Profile: Limited-impact roles; pivot to roles with clear business impact or scarce skills.
Education: Non-elite college; offset via strong certifications and demonstrable projects.economictimes.indiatimes
Skills: Outdated stack; invest in certifications tied to current demand (cloud, data, EV systems, regulatory).economictimes.indiatimes
Personality: Weak communication/negotiation; build stakeholder and interview strength.
College Perceptions: Overcome via portfolio evidence and referrals.
Health: Build sustainable routines to handle higher-responsibility roles.
References: Cultivate mentors and sponsors to unlock internal moves.

Negotiation Tactics Aligned to 2025 Market

Cite current sector increment studies when discussing raises or offers; point to Aon’s 2025 projection and TeamLease’s city/role variations to justify asks grounded in market reality.outlookmoney+2
For role changes, present a skills map that matches high-growth areas (engineering design services, auto/EV, NBFCs, GCCs, life sciences), and quantify your recent impact.ibef+2
Calibrate expectations vs. internal bands and variable pay norms by role.

Ready-to-Use Excel Salary Calculator Template

Structure this worksheet with input cells, automatic adjustments, and a decision output. Below is a schema you can replicate in Excel or Google Sheets.

Sheet: Inputs

Current Fixed Annual Salary (₹) [User input]
Variable/Bonus Expected (₹) [User input]
City (dropdown: Metro, Tier-1, Tier-2/3) [User input]
Industry (dropdown: IT/GCC, BFSI/NBFC, Manufacturing/Auto/EV, Healthcare/Life Sciences, Retail/Consumer, Consulting/Services) [User input]
Role Level (dropdown: Entry, Mid, Senior, Manager/Lead) [User input]
Experience (years) [User input]
Highest Education (dropdown: Tier-1, Tier-2, Tier-3/Other) [User input]
Key Skills/Certifications (dropdown multi-select with weights) [User input]
Recent Performance (dropdown: Below, Meets, Exceeds) [User input]
Competing Offer? (Yes/No, amount if Yes) [User input]

Sheet: Market Benchmarks

National Baseline (PLFS monthly regular wage, latest available; convert to annual for reference) [Reference to PLFS]dge+3
Sector Increment Range 2025 (Aon average 9.2%; TeamLease 6.2–11.3% with role/city notes)outlookmoney+2
City Premium Factors (e.g., Metro +X%, Tier-1 +Y%) derived from market intelligence and internal data notesgroup.teamlease+1
Role Scarcity Multipliers (e.g., cloud/data/security, EV systems, regulatory)economictimes.indiatimes
Education Adjustment (small entry-level premium; diminishes with experience)

Sheet: Calculator (Formulas)

Base Market Anchor = Prior-year comparable salary × 2025 Increment Factor (choose from Aon/TeamLease ranges)ibef+2
City Adjustment = Base × City Factorgroup.teamlease+1
Role Scarcity Adjustment = Base × Skills/Scarcity Factoreconomictimes.indiatimes
Education Adjustment = Base × Education Factor (more weight at entry; taper by experience)
Performance Adjustment = Base × Performance Factor
Target Market Salary (Fixed) = Base Market Anchor + all adjustments
Target Total Comp = Target Fixed + Typical Variable for role/industry
Gap Analysis = (Target Fixed – Current Fixed), (Target Total – Current Total)
Decision Flag = If Gap > threshold (e.g., 15%), suggest negotiation or job search; if within ±10%, salary is near market; if above, maintain/renegotiate responsibilities accordingly.

Sheet: Output Dashboard

“Right Salary Verdict”: Underpaid / Near Market / Above Market
Recommended Actions: Upskill areas, target companies, negotiation anchor, or internal move strategy
Reference Snapshot: Cite PLFS anchor and 2025 sector increment sources used for the calculationmospi+6

Important: Populate the “Market Benchmarks” sheet with actual numbers directly from sources where possible (e.g., PLFS monthly averages converted to annual as a national anchor; Aon 9.2% 2025 average increment; TeamLease 6.2–11.3% ranges), and clearly label each reference line with the citation footnote so users know which cell maps to which source.mospi+6

How to Use the Calculator (Example)

Candidate: 5 years’ experience, IT/GCC, Bengaluru, strong cloud certs, meets expectations.
Select Aon 2025 increment 9.2% as baseline; optionally compare to TeamLease role/city range (e.g., ~10% where applicable).outlookmoney+2
Apply Metro city factor, role scarcity factor for cloud, and modest education factor if not Tier-1 at entry.
The model returns a Target Fixed and Target Total, with a Gap Analysis and a recommended negotiation anchor grounded in market sources.ibef+2

FAQs

Is the national PLFS average relevant for white-collar tech roles?

It’s a macro anchor showing overall wage levels and trends for regular wage/salaried workers; tech roles should then adjust upwards using sector increments and company bands. Always combine macro (PLFS) with sector/company data for realistic targeting.dge+6

Which source should I trust for increments?

Use Aon’s 2025 projection for a broad anchor and TeamLease’s role/city range for fine-tuning. Cross-check with internal HR bands and actual offer letters where possible.outlookmoney+2

How often should I re-benchmark?

Annually for increments; immediately before a job switch or internal move; and whenever role scope changes significantly.

Action Plan: Closing Your Salary Gap in 90 Days

Skill Upgrade: Earn in-demand certifications mapped to your sector’s 2025 growth vectors (cloud/data/security in IT; EV systems in manufacturing; risk/analytics in NBFC/BFSI; regulatory/biostats in life sciences).economictimes.indiatimes
Role Shift: Move from lower-impact to business-critical roles; quantify outcomes.
Location Strategy: Consider metro mobility if feasible and aligned with life stage.economictimes.indiatimes
Evidence File: Maintain a portfolio of measurable achievements tied to revenue, cost, risk, or time-to-market impacts.
Market Testing: Apply to 5–10 calibrated roles to validate your target bands and get current offer signals.
Negotiate with Data: Anchor your ask with Aon/TeamLease projections and your documented impact.ibef+2

For structured guidance, mentorship, and employability acceleration, pair this data-driven approach with services such as resume optimization, interview preparation, and career mentorship programs. These supports help translate your skills into offers aligned with market reality.

Resume writing, career mentorship, self-assessment, and related programs can meaningfully improve market outcomes when combined with targeted upskilling and role strategy.

Sources Used in This Guide

PLFS Annual and Quarterly releases by MoSPI (Government of India): macro wage trends and earnings by worker category and period.mospi+3
Aon Annual Salary Increase & Turnover Survey (India 2024–25): projected average increments and sector differentials for 2025.outlookmoney+1
TeamLease Jobs and Salaries Primer 2025–26: projected ranges of salary hikes by industry, role, and city.group.teamlease+1

These sources provide the most credible, current macro and sectoral indicators available as of 2025.

If a downloadable Excel file is needed, paste the schema above into a spreadsheet and populate the “Market Benchmarks” sheet with:

PLFS: Latest “average wage/salary earnings during preceding month” for regular wage/salaried employees as a national anchor (convert to annual for reference), labeled with the PLFS reference.pib+3
Aon: 2025 average increment 9.2% and sector notes.ibef+1
TeamLease: 6.2%–11.3% range, with any city/role notes that apply.group.teamlease+1

Then share the file via your website or drive link for readers to download.

Would you like a pre-filled CSV version of the “Market Benchmarks” and “Calculator” sheets (with formula notes) that can be imported into Excel or Google Sheets? I can generate that next so you can host it as a download on your site.