Average salary in India compared to Australia: where it sits on the salary index
See how the average salary in India compares to Australian earnings using the Salary Index. Indian regular wage data from PLFS 2025 is placed against the Australian national line.
The average salary in India is a fraction of the Australian national line, but precise index comparison requires currency conversion.
What is the average salary in India?
The average salary in India varies widely by occupation, education, and location. The most recent official data comes from the Periodic Labour Force Survey (PLFS) 2025, which reports that regular wage or salaried employees across India earn an average of ₹22,699 per month. That works out to about ₹272,388 per year. For context, the average for men is ₹24,217 per month and for women ₹18,353 per month. These figures are for regular employees only – self-employed and casual workers earn less on average.
How does the average salary in India compare to the Australian salary index?
The Australian salary index sets 100 as full-time adult ordinary-time earnings, which the Australian Bureau of Statistics reported as $2,083.70 per week in May 2026, annualised to $108,352. To place the Indian average on this index, you need to convert rupees to Australian dollars. At a rough exchange rate of 1 AUD = 55 INR, the Indian average of ₹272,388 per year becomes about AUD $4,950. That would give an index of around 4.6 – far below the national line. Even using a purchasing power parity adjustment, Indian salaries are a small fraction of Australian earnings.
Breaking down the Indian figures
The PLFS 2025 provides a rich picture of earnings by education level. For example:
- Not literate: ₹9,754 per month
- Secondary education: ₹16,340 per month
- Graduate: ₹32,683 per month
- Postgraduate and above: ₹45,430 per month
By occupation, managers earn the most at ₹50,408 per month, followed by professionals at ₹38,466. The lowest paid regular workers are in elementary occupations at ₹12,270 per month. These numbers show the wide dispersion within India’s labour market.
Why the comparison matters for Australian readers
If you are an Australian employer, recruiter, or policy analyst, understanding the average salary in India helps contextualise labour costs, outsourcing decisions, and migration patterns. The salary index gives you a familiar benchmark: the Australian national line. Even though Indian salaries are low by Australian standards, they have been rising. Real average earnings (adjusted for inflation) increased from ₹21,417 per month in 2022 to ₹22,210 per month in 2025, according to data.
Limitations of the comparison
Several factors prevent a simple one-to-one comparison:
- Currency fluctuations: The exchange rate used here is illustrative. Actual rates change daily.
- Different definitions: The Indian data covers only regular wage employees, while the Australian index includes all full-time adults.
- Cost of living: Goods and services are cheaper in India, so a lower nominal salary may still provide a reasonable standard of living.
- Tax and social security: India has its own income tax brackets and provident fund contributions, which differ from Australia’s system of superannuation (12% from 1 July 2026) and progressive tax rates.
Using the salary index for international comparisons
The Salary Index is designed for Australian earnings, but you can apply the same logic to any income figure. Divide the annual gross amount (in Australian dollars) by $108,352 and multiply by 100. For example, an Indian graduate earning ₹32,683 per month converts to roughly AUD $7,130 per year, giving an index of about 6.6. That is well below the Australian national minimum wage index of 48.2.
State and industry context in Australia
Within Australia, the index varies by state and industry. For instance, Western Australia has an index of 106.9, while Tasmania sits at 88.6. Industries like mining (index 154.7) far exceed the national line, while retail trade (75.9) and accommodation and food services (72.5) are below. These benchmarks help you see where Indian averages would fall – far below even the lowest Australian industry index.
Final thoughts
The average salary in India is a useful reference point for anyone comparing labour costs or living standards between the two countries. While the nominal gap is enormous, the salary index provides a consistent framework for that comparison. For more on how the index works, see how the index works. To explore earnings by Australian state, visit states. And for industry-specific benchmarks, check industries.
Questions people ask
How does the average salary in India compare to the Australian minimum wage?
The Australian national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised $52,255 (index 48.2). The average regular wage in India (₹22,699 per month) converts to roughly AUD $4,950 per year at current exchange rates, which is far below the Australian minimum. Even after adjusting for purchasing power, Indian salaries are a fraction of Australian award floors.
What is the average salary in India for graduates?
According to PLFS 2025, regular wage employees with a graduate degree earn an average of ₹32,683 per month across India (₹392,196 per year). That is about AUD $7,130 per year at a rough exchange rate. In Australia, a graduate starting salary often exceeds $60,000, which sits above index 55. The gap reflects different labour markets and living costs.
Can I use the Salary Index to compare Indian salaries to Australian ones?
The Salary Index is built from Australian Bureau of Statistics data and benchmarks Australian full-time adult ordinary-time earnings at 100. To compare an Indian salary, you would first convert it to Australian dollars at the prevailing exchange rate, then divide by the national line ($108,352 per year) and multiply by 100. However, this does not account for purchasing power parity or different living costs. It gives a rough numerical comparison but should be interpreted with caution.