- Indian offers are usually quoted as yearly cost to company (CTC), not monthly gross.
- CTC can include employer PF, gratuity accrual and variable pay, so headline numbers aren’t comparable.
- Pune’s Zone I minimum wage for skilled work is ₹15,766 a month from 1 July to 31 December 2026.
- Section 3 of the Code on Wages bars pay differences by gender for the same or similar work.
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How do you benchmark salaries in India?
Match on four things before you compare a single number: role, level, city and pay basis.
Role and level come first. Titles inflate in India, so a “senior engineer” at a services firm may match a mid-level role at a product company. Benchmark on years of experience and scope, not title.
City comes next. Pay in Bengaluru, Pune or Hyderabad differs from smaller tier 2 and 3 cities, and remote roles often price somewhere in between. Our guide to the average salary in India breaks this down by city and experience.
Then fix the basis. Is the figure fixed pay only, or fixed plus variable pay? Does it include employer PF? Get this wrong and the rest is noise.
Finally, check the floor. No benchmark can take a worker below the state minimum wage, and section 3 of the Code on Wages makes gender gaps for similar work unlawful.
Why does CTC versus gross matter when you benchmark?
Because the same “₹18 lakh” can mean two different offers.
Let’s say a candidate in Pune holds an offer of ₹18 lakh CTC. You plan to offer ₹18 lakh gross. Both look equal. They aren’t.
| Line (yearly) | ₹18 lakh CTC offer | ₹18 lakh gross offer |
|---|---|---|
| Gross salary | ₹17,22,572 | ₹18,00,000 |
| Employer PF (₹3,000 × 12) | ₹36,000 | ₹36,000 |
| Gratuity accrual (4.81% of basic) | ₹41,428 | ₹43,290 |
| Annual cost to employer | ₹18,00,000 | ₹18,79,290 |
Basic is half of gross in both, in line with the 50% wage rule. The CTC offer pays about ₹77,000 less in gross salary, roughly 4%.
So convert every data point to one basis before you compare. Most foreign employers skip this step and overpay, or lose a lateral hire to a counter-offer they misread.
How can Remunance help you price an India role?
Remunance bundles talent acquisition with its EOR service, so the team sourcing your hire also sees the offers candidates are weighing. Salary, employer PF, gratuity accrual and insurance pass through at cost, on top of a flat fee from USD 99 per employee per month. Run your numbers in our EOR cost calculator for India, then request a costed offer for your role.
What else do people ask about salary benchmarking?
What is a good salary hike in India when switching jobs?
There’s no statutory number. Benchmark the role in the new city and level, then convert both offers to the same CTC basis before you compare the hike.
Is salary benchmarking data reliable in India?
It varies. Job-portal figures skew to posted roles, and survey data lags. Check the date, the sample and whether figures are CTC or gross.
Should foreign companies pay India salaries in USD?
Rarely. Indian employees are paid in rupees through Indian payroll, so benchmark and offer in cost to company (CTC) terms in rupees.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.