Compensation Structure in Pharmaceutical Sector
What is a Compensation Package? The compensation package comprises of monetary and non-monetary benefits that includes salary, special allowances, house rent allowance, travel allowance, mobile allowance, employee stock options, club memberships, accommodations, retirement benefits and other benefits. It may include a number of other benefits, including insurance, employee discounts, extended leaves, and The basic tools of any compensation system retirement programs. Wage surveys Job analysis/evaluatio analysis/evaluation n Performance appraisal The basic goals of any compensation system to retain high quality employees to stimulate high performance to attract high quality employees
Total Compensation = Direct + Indirect Compensation
Base Pay
Incentives
Benefits
About..
The first Indian pharmaceutical company, Bengal Chemicals and Pharmaceutical Works, that exists today as one of 5 governmentgovernment-owned owned drug manufacturers, appeared in Calcutta in 1930. For the next 60 years, most of the drugs in India were imported by multinationals either in fully-formulated or bulk form. The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970, enabled the industry to become what it its i ts today. The pharmaceutical sector is witnessing the highest salary hike hi ke of 11.1 hike percent for the fiscal year 2009-10 India is the world’s fourth largest producer of pharmaceuticals by volume, accounting for around 8% of global production. The Indian pharmaceutical industry directly employs around 500,000 people and is highly fragmented with 20,000 registered units. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of of the market share.
Major Player in the Industry
Ranbaxy Laboratories Dr. Reddy's Laboratories Cipla Nicolas Piramal India Aurobindo Pharma GlaxoSmithKline Lupin Laboratories Sun Pharmaceutical Industries Cadila Healthcare Wockhardt
Salary Package for Junior Managers Desi De sign gnat atio ion n A (B (Bas asic ic B C D (Retiral E (Valued Average Salary) (Benefit (Perform Benefits) Perquisite Annual s and ance Pay) s) CTC Reimbu rsemen ts) Minimum
11655
11774
1000
1959
0
316658
Average
20443
19926
5173
3608
1641
609498
Maximum
17616
40507
9779
2961
17420
1059396
Salary Package for Middle Managers
Designati A (Basic B C D E (Valued Average on Salary) (Benefits (Performa (Retiral Perquisite Annual CTC and nce Pay) Benefits) s) Reimburs ements) Minimum 25 25530
24362
3333
8122
12902
890988
Average 56731
81729
22888
18160
14758
2331173
Maximu 13600 m
164773
1066
43263
27549
4471818
Salary Package for Senior Managers Designat A (Basic B C D (Retiral E Average ion Salary) (Benefits (Perform Benefits) (Valued Annual and ance Perquisit CTC Reimbur Pay) es) sements) Minimum 67200
90899
26750
21376
22718
2747311
Average 147374 222854 67874
46880
32085
6204802
Maximu 280000 453901 220000 89068 m
41667
1301563 3
Salary Structure for MBA Trainee
Salary Structure after Confirmation
Compensation Structures in Major Cities in India for fresher Major Cities
Salary Packages Per Annum (in Rs)
Mumbai
240000- 340000
Delhi
210000- 320000
Kolkata
160000 – 220000
Chennai
200000 - 310000
Bangalore
190000- 320000
Some facts & figures
28 %of all jobs in the pharmaceutical and medicine manufacturing industry are in professional and related occupations, mostly scientists and science technicians
18 % are in management occupations
12 % are in office and administrative support sup port support
3 % in sales and related occupations
3 out of 10 jobs in the industry are in production occupations, including both low-skilled and high-skilled jobs
Salary Packages across various B-Schools
The Students from IIMs get a package packa ge of 30% plus the packages
Students from other B-schools that fall in the A++ category gets the aforesaid salary packages
The package also depends on the individual performance and quality.
Conclusion Decisions concerning compensation issues are some of the most critical decisions faced by organizations today, because of their influence on: -- organizational survival and growth -- employee perceptions of fairness and equity Remuneration has now become the central issue for attracting and retaining employees across industries. The compensation structure within the pharma industry has also undergone a sea change over the past couple of years due to the phenomenal growth in this sector
