Curious About India's Labor Market: Do Qualifications and University Prestige Affect Salaries?

I am a Korean student studying India's labor market. I think some of you may help me by letting me know these inquiries.

Qualification Allowances in India's Labor Market

1. Is there any qualification allowance in India's labor market?
- In Korean companies, they give allowances to employees if an employee has a qualification or degree such as an MBA, CFA, CPA, Law school, and so on.

University Graduates' Starting Salary Differentials

2. Is there any difference in starting salaries for university graduates based on whether they attended a prestigious or ordinary university?
- Here, there are no salary differentials based on the fame of the university. Starting salary is decided by each company's policy, and there are no negotiations on starting salary.
- If not, how are starting salaries determined for university graduates? Through negotiations or something else?

Thank you for reading.

Best regards,
areuke

It's nice to know that you are making an effort to study the Indian labor market.

Coming to your queries:

1. Is there any qualification allowances in India's labor market?

There are no standard rules governing this aspect, but quite a few companies—especially Government-owned—have their own policies giving special allowances for specific degrees related to the employee's role in that company.

2. Is there any university graduates' starting salary differentials by prestigious/ordinary university?

I presume you are referring to a fresher just out from college/university. Most companies have a clear policy that decides the starting salary for freshers. However, the fresher salary structure can vary from role to role within the same company (for example, a finance degree holder for a finance & accounts position can have a different salary structure than a computer engineering qualified fresher for a software developer position, and so on).

For freshers, there are no negotiations regarding the salary—they are just fit into the structure as per the company policies.

Though no one says explicitly that the 'fame' of a university will decide the salary of the fresher, practically it's very common for students passing out from famed universities to get higher salaries—in whatever form—since their quality is usually high too.

Hope that answers your queries. By the way, what is your main purpose of visiting India? And where are you currently located?

Regards,
TS

I'm really appreciative of your comments. Thank you  I'm just studying to prepare a report related to human resource management in Seoul, South Korea.

Glad to know that my inputs helped you. Are you located in Seoul or India? We actually have a Business Partner in Seoul. All the best.

Regards, TS

I'm living in Seoul now. I know lots of Korean companies are likely to expand their business to India, and they're usually in trouble with that because of a lack of business information about India. So am I; it's difficult for me to find India's business and HR information. Your comments helped me a lot. Thanks.

Regards,
Ian