22651356-compensation-structure-in-pharmaceutical-sector

8/7/2019 22651356-Compensation-Structure-in-Pharmaceutical-Sector

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Compensation Structure in

Pharmaceutical Sector



What is a Compensation Package?

The compensation package comprises of monetary and non-monetarybenefits 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 retirement programs.

The basic tools of any compensation systemW age surveysJob analysis/evaluationPerformance appraisal

The basic goals of any compensation systemThe basic goals of any compensation systemto retain high quality employeesto retain high quality employeesto stimulate high performanceto stimulate high performanceto attract high quality employeesto attract high quality employees



Total Compensation = Direct + Indirect Compensation

Base Pay Incentives Benefits



About..

The first Indian pharmaceutical company, Bengal Chemicals andPharmaceuticalWorks, that exists today as one of 5 government-owneddrug manufacturers, appeared in Calcutta in 1930.

For the next 60 years, most of the drugs in India were imported bymultinationals either in fully-formulated or bulk form.

The government started to encourage the growth of drug manufacturingby 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 11.1percent 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 500,000people and is highly fragmented with 20,000 registered units.

The leading 250 pharmaceutical companies control 70% of the marketwith 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

DesignationDesignation A (BasicA (Basic

Salary)Salary)

BB

(Benefit(Benefits ands and

ReimbuReimbursementrsement

s)s)

CC

(Performa(Performance Pay)nce Pay)

D (RetiralD (Retiral

Benefits)Benefits)

E (ValuedE (Valued

PerquisitesPerquisites))

AverageAverage

AnnualAnnualCTCCTC

MinimumMinimum 1165511655 1177411774 10001000 19591959 00 316658316658

AverageAverage 2044320443 1992619926 51735173 36083608 16411641 609498609498

MaximumMaximum 1761617616 4050740507 97799779 29612961 1742017420 10593961059396



Salary Package for Middle Managers

DesignatiDesignationon

A (BasicA (BasicSalary)Salary)

BB(Benefits(Benefits

andand

ReimbursReimburs

ements)ements)

CC(Performan(Performan

ce Pay)ce Pay)

DD(Retiral(Retiral

Benefits)Benefits)

E (ValuedE (ValuedPerquisites)Perquisites)

AverageAverageAnnual CTCAnnual CTC

MinimumMinimum 2553025530 2436224362 33333333 81228122 1290212902 890988890988

AverageAverage 5673156731 8172981729 2288822888 1816018160 1475814758 23311732331173

MaximumMaximum 1360013600 164773164773 10661066 4326343263 2754927549 44718184471818



Salary Package for Senior Managers

DesignatiDesignati

onon

A (BasicA (Basic

Salary)Salary)

BB

(Benefits(Benefitsandand

ReimbursReimbursements)ements)

CC

(Perform(Performance Pay)ance Pay)

D (RetiralD (Retiral

Benefits)Benefits)

E (ValuedE (Valued

PerquisitePerquisites)s)

AverageAverage

AnnualAnnualCTCCTC

MinimumMinimum 6720067200 9089990899 2675026750 2137621376 2271822718 27473112747311

AverageAverage 147374147374 222854222854 6787467874 4688046880 3208532085 62048026204802

MaximuMaximu

mm

280000280000 453901453901 220000220000 8906889068 4166741667 1301563313015633



Salary Structure forMBA Trainee



Salary Structure after Confirmation



Compensation Structures in Major

Cities in India for fresher

Major CitiesMajor Cities Salary Packages Per AnnumSalary Packages Per Annum

(in Rs)(in Rs)

Mumbai 240000- 340000

Delhi 210000- 320000

Kolkata 160000 ² 220000

Chennai 200000 - 310000

Bangalore 190000- 320000



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 tothe phenomenal growth in this sector

22651356-compensation-structure-in-pharmaceutical-sector

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