MBA is considered to be the course with the highest return on investment. However, the salary one gets varies when one enters the job sector as a fresher or as an experienced professional.
This article talks about the average MBA salary in India, along with the comparison of what a fresher gets at the start, and what a candidate can make after gathering sufficient experience in the relevant field.
What is the average MBA Salary In India?
The average MBA salary in India, spanning across all types of colleges, including government as well as private, in metro as well as non-metro cities, is around 7 lakhs per annum to 12 lakhs per annum.
However, this number greatly varies depending on the college a student is enrolled on. There is huge competition to get into the top-tier MBA colleges of the country, like IIM Ahmedabad, because of the fantastic placement packages.
The following are the glimpses of average salary packages according to different tiers of institutions in India-
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In Tier 1 institutions like IIM Ahmedabad, Bangalore and Calcutta, FMS, XLRI, the average salary package for students is around 20 to 30 lakhs per annum as a starting salary.
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In Tier 2 institutions like MDI, the average salary range is from 12 lakhs to 20 lakhs per annum.
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In Tier 3 institutions, including different private universities, the average salary range for an MBA graduate is around 5 to 10 lakhs per annum.
Hence, it can be said that for every MBA aspirant, getting into a good college is necessary in order to get the highest placement packages, as the higher the brand value of the college, the higher the package students generally secure at these colleges.
What do an average MBA fresher and an experienced person earn in India?
The following are the points of comparison that differentiate the salary earned by an MBA fresher from that of an experienced person.
1. Average range
The salary of a fresher MBA starts from 6 lakhs and averages around 10 lakhs. Whereas the average salary range for an experienced professional after completing an MBA is 15 lakhs to 20 lakhs.
2. Job Roles
A fresher MBA graduate is hired generally for the role of management trainee, where salaries are fixed in terms of what is offered by the companies to the colleges in campus placements.
However, for senior and experienced professionals, a premium is attached to their salaries, which increases their salaries many times.
3. Specialization
Experienced professionals specialize in a relevant field, so they are awarded for their expertise.
Whereas a fresher is generally allotted general management roles to work on in the beginning, which further creates a salary differential.
4. Variable Pay
The salary of freshers is generally fixed, and there is less scope to earn additional money.
However, in the case of experienced professionals, there are many performance-linked incentives which they can capitalize to earn great money.
5. Negotiation
An experienced MBA graduate has much more negotiation power than a fresher MBA graduate.
Experienced MBA graduates make a strategic choice of choosing the company that offers them greater value, so their earning potential is much higher than that of freshers.
