Compensation Structure in Pharmaceutical Sector

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/evaluation Performance appraisal The basic goals of any compensation system to retain high quality employees to stimulate high performance to attract high quality employees

What is a Compensation Package? The compensation package comprises of monetary and

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 government-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 today. The pharmaceutical sector is witnessing the highest salary hike of 11.1 percent for the fiscal year 2009-10 India is the worlds 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 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

Designation A (Basic B C D (Retiral E (Valued Average Salary) (Benefit (Perform Benefits) Perquisite Annual s and ance Pay) s) CTC Reimbu rsemen ts) Minimum Average Maximum 11655 20443 17616 11774 19926 40507 1000 5173 9779 1959 3608 2961 0 1641 17420 316658 609498 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 25530 Average 56731 Maximu 13600 m 24362 81729 164773 3333 22888 1066 8122 18160 43263 12902 14758 27549 890988 2331173 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) Minimum67200 90899 26750 21376 46880 22718 32085 41667 2747311 6204802 1301563 3

Average 147374 222854 67874

Maximu 280000 453901 220000 89068 m

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)
240000- 340000 210000- 320000 160000 220000 200000 - 310000 190000- 320000 Mumbai Delhi Kolkata Chennai Bangalore

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 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 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