Wednesday, December 7, 2011

The truth about packages

1. The high packages you hear are so rare that only 1 in 10 of the top 1% get them. So you are barely looking at the top 0.01% and there are more people who have their own business or startup and earn much more than these guys, if you really want to look at such a rare minority.

2. When the package is unbelievable then 100% of the times it is a foreign package and most likely worth peanuts in that country, far lower than the max domestic package in real terms.

3. Average to above average people even at IITs and IIMs are paid rather modestly.

4. These packages are still lesser than what Ivy grads get. The best of India compares to 80% of Harvard and the like, the best of Ivy is way beyond all of India together.

Average salary
7-9 lacs a year

Dream salary, top 10%
>12 lacs

Top 1%
>18 lacs

Maximum or near maximum domestic package with maybe one or two rare exceptions excluded
20-25 lacs

Average foreign package $60k or less

Max foreign package $150-200+


Average package 14+ lacs

Dream package 17+

Top 1% 20 lacs

Maximum 20-40 lacs

Average foreign $100k

Maximum foreign $200+ k

Delhi University (Stephens. Sscbs. Srcc. Lsr)

Average 5-6
Top 10% 7+
Top 1% 9+
Maximum domestic 8-12
Besides, the majority doesn't get placed except in Sscbs

Also, even these packages only have cash in hand as 60-70% of the ctc a 15 lac package is like rs80000-90000 cash in hand per month.

Many big companies deduct for stuff like office maintenance etc to the extent of 10-20% of gross etc and then there are taxes etc.

Only about 2-3% or less of IIM A and Top IITs get over a lakh cash in hand as domestic packages strain out of college. Of these 99% people make around 1.1.25 per month, so they barely scrape through.

Those who really study in college do know all this, except not the reporters of course :)