Majority blue-collar jobs pay less than Rs 20,000 per month in India: Report

PTI, Aug 17, 2024, 6:00 PM IST

Mumbai: Majority of blue-collar jobs in India pay within the salary range of Rs 20,000 or less per month, suggesting that a substantial portion of the workforce is grappling with financial strain, struggling to meet essential needs such as housing, healthcare, and education, a report has said.

Over 57.63 per cent of blue-collar jobs fall within the salary range of Rs 20,000 or less per month, indicating that many workers earn close to the minimum wage, tech-enabled blue collar recruitment platform WorkIndia said in a report.

In addition, the report revealed that about 29.34 per cent of blue-collar jobs are in the moderate earning bracket, with salaries ranging from Rs 20,000-40,000 per month.

Workers falling under this category, experience marginally improved financial security but are far from achieving a comfortable standard of living, it said.

The income in this range may cover necessities but it leaves little room for savings or investments, which highlights the economic vulnerability of a large segment of the blue-collar workforce, it added.

“The data reveals a significant concentration of low-wage jobs and limited opportunities for higher earnings within the blue-collar sector. This disparity not only reflects the economic challenges faced by a large portion of the workforce but also has broader implications for social stability and economic growth,” WorkIndia CEO and co-founder Nilesh Dungarwal told PTI.

Addressing these issues may require targeted interventions such as skill development, wage reforms, and the creation of more high-paying job opportunities, he added.

The report further revealed that a very small segment of the workforce, constituting only 10.71 per cent, get salaries over Rs 40,000-60,000 per month.

This higher earning bracket among the blue collar reflects the presence of specialised skills or experience among these workers, yet the restricted availability of such positions suggests that upward mobility within the segment remains challenging, it said.

Only 2.31 per cent of blue-collar jobs offer salaries exceeding Rs 60,000, which is an extremely small percentage that signifies the scarcity of well-paying opportunities in this sector, it stated.

Positions in this top bracket are typically highly-specialised or involve significant responsibility, making them accessible only to a select few, the report added.

The report is based on an analysis of job data collected from the WorkIndia platform over the past two years, which includes over 24 lakh job postings across various industries.

The report said, field sales positions lead the list of the highest-paying blue-collar roles, with 33.84 per cent of roles offering salaries above Rs 40,000 per month. This is closely followed by back office roles as 33.10 per cent get over Rs 40,000 and tele-calling positions with 26.57 per cent earning more than Rs 40,000, it stated.

Meanwhile, in the accounting field, 24.71 per cent of jobs offer salaries above Rs 40,000 per month, driven by the need for accurate financial management.

Business development roles, which are crucial for expanding company operations, offer competitive pay, with 21.73 per cent of positions exceeding Rs 40,000 per month, said the report.

Interestingly, it found that skilled cooks and receptionists also fall into the higher salary bracket, with 21.22 per cent and 17.60 per cent of these roles, respectively, earning above Rs 40,000 per month.

Delivery jobs, while essential, have the lowest percentage in this category, with only 16.23 per cent of roles offering higher pay, it added.