After remaining stagnant for 2 years, salaries in the ba?nking, financial services and insurance (BFSI) sector we?nt up 40 per cent in 2016 as the drive towards digitisati?on, emergence of small fina?nce banks and FDI in insu?rance opened up the sector.
In 2016, BFSI was the highest paid sector with a median gross hourly wage of Rs 433. In 2014 and 2015, the median gross hourly wa?ge was stagnant at Rs 307.9, finds a Monster.com study.
“With increasing emphasis on digitisation, dynamics of the BSFI sector have altered tremendously. The se?c?t?or saw a mix of public-private stability, growth in the BFSI ecosystem and the op?e?ning up of FDI. All these factors have added to the incremental human resource need, thereby, creating gro?wth in the sector,” said Monster.com spokesman.
The government’s move to digitise financial transactions saw emergence of several fintech startups. Even the existing players added manpower to push the digital initiatives. Last year the sector also saw the launch of small finance banks. While some of the micro finance institutions became small finance banks, a few new entities too entered the BFSI sector and increased the requirement of manpower.
Meanwhile, private insu?r?ance firms saw their foreign partners raising stake after the government relaxed FDI norms. The sector is expected to see significant growth in the coming years and the hiring too is expected to pick up. The overall buoyancy saw the salaries moving up.
But the gender gap in the sector continues to be wide enough, though it eased a bit in 2016. The gender pay gap in BFSI was 21.5 per cent, slightly lower than 24.8 per cent across different sectors. In BFSI sector on an average, men earn an hourly median wage of Rs 346.4 and women Rs 272.
“Some of the reasons for the gender pay gap in India could be the preference for male employees over female employees, preference for promotion of male employees to supervisory positions and career breaks of women due to parenthood duties and other socio-cultural factors,” finds the study.
Employees in supervisory positions earn in median nearly twice as much as no?n-supervisors. This sector al?so records a wages rise wi?th growing years of service in the labour market. In 2016, beginners earned Rs 378.1 less per hour than people with 11+ years experience.
The ownership of the firm too has a role to play in deciding how the employees are paid. On an average, employees working in wholly domestic firms earn lesser at Rs 173.2 per hour, compar?ed with Rs 422.4 earned by employees in fully or partially foreign-owned companies. The wages in domestic companies only rose by Rs 9, while that in foreign-owned companies grew by Rs 161.7.