Pay gap between permanent and temp roles narrows, shows TeamLease study

The pay gap between permanent and temporary roles across job profiles in India has been reducing since 2018 with more than 40 per cent of the profiles having less than 5 per cent salary difference currently, according to TeamLease Services’ Jobs and Salaries Primer report FY2022-23. 

The report showed that 41 per cent of job profiles in 17 industries have just a 5 per cent pay difference between permanent and temporary roles. This is despite a dip in overall salary growth this year. The range of salary growth has been between 3.20% and 10.19 per cent across various industries, which is slightly slower compared to the previous year. 

Reports from earlier years showed that 5 per cent salary gap was found only in 25 per cent of the profiles in 2018-19. The number rose to 37 per cent of the job profiles in 2022 and to 41 per cent in 2023. 

“Contractual jobs are gaining parity, and employers are becoming more conducive to paying the contractual workforce handsomely. A couple of super-specialized contract roles earn even more than their permanent counterparts,” said Kartik Narayan, CEO – Staffing, TeamLease Services. 

BPO & ITES, E-Commerce & Tech Startups, Retail, Fast Moving Consumer Durables, Healthcare & Pharmaceuticals and Hospitality are some of the sectors where temporary roles are paying well, he said. 

"The purpose of outsourcing staff is to fulfill short-term demand, provide flexibility or reduce the risks imposed by events such as the pandemic; hence, companies are constantly making efforts to attract, recruit, and retain talent in bulk.” 

The report analyses the salary trends of the past five years, covering 403 unique employers and 357 unique employees across 9 hub cities and 17 industries, highlighting the median salary increment of around 8.03 per cent. 

The majority of industries included in the survey have indicated the creation of "hot jobs" that offer lucrative salaries and nearly half of the industries are developing cutting-edge positions that are the right fit for the future. Bangalore has an impressive growth rate of 7.79% compared to last year. On the contrary, the BFSI segment witnessed a sharp decline in average salaries this year after two years of steady growth. However, despite the decrease in pay-outs, the BFSI industry is still creating a diverse range of job profiles that are both hot and longstanding, while also implementing measures to optimize salaries. 

Despite a dip in average salaries in the telecom industry, the report highlights an astonishing 10.19 per cent hike in the Relationship Manager role in the telecom sector in Bengaluru, making it the highest-paying job in the market. Following closely is the Game Developer role in media and entertainment, with a hike of 9.30 per cent, also in Bengaluru. Across sectors, while the median salary increment stood at a steady 8.03 per cent, the maximum increment of 10.19 per cent was slightly lower than the previous year.