The pharmaceutical industry in India is a rapidly evolving and high-growth sector, with executive compensation reflecting significant disparities between multinational corporations (MNCs) and homegrown Indian firms. With rising talent demands, innovation cycles, and global competitiveness, leadership pay structures have seen steady and notable increases in recent years. This blog provides an insightful overview of the executive pay landscape in India’s pharmaceutical companies, comparing MNCs with large Indian firms, and highlights key trends shaping compensation in 2025.
Salary Trends Since 2020
Since 2020, executive salaries across the pharma sector have risen approximately 9-10% annually, outpacing many other Indian industries. For example, Vice Presidents in pharma MNCs had an average salary of about ₹30 lakhs in 2020, which has climbed to ₹34–54 lakhs in 2025, with median pay around ₹38 lakhs. This reflects sector resilience underpinned by healthcare innovation and strong talent competition. 6figr+1
Compensation Variations: MNCs Compared to Indian Pharma Firms
Multinational pharma companies generally offer higher fixed salaries combined with bonuses, stock options, and long-term incentive plans aligned with global standards. For instance, the Managing Director (MD) of GSK India receives a total remuneration near ₹6.7 crores, encompassing salary, performance bonuses, and equity benefits. Indian pharma firms deliver competitive but somewhat varied executive pay: notable leaders like Murali Divi from Divi’s Lab earn upwards of ₹50 crores, primarily through profit-linked commissions, while MDs in other top firms typically earn between ₹14–20 crores. 6figr+2
Key Factors Influencing Pay Differences
Several factors drive compensation disparities in pharma executives:
- Ownership structure: MNCs pay approximately 10-11% more on average for similar roles due to global compensation frameworks.
- Company revenue and size: Pay scales increase steeply for firms exceeding ₹5,000 crore in turnover.
- Industry segment and geographic location: Northern India pharma hubs offer slightly higher wages, with pharma among the highest-paying sectors.
- Performance incentives and equity compensation form a large share, especially in Indian promoter-led firms, contributing to pay variability. economictimes+1
Industry-Specific Trends
The pharmaceutical industry continues to top salary hike charts, with planned increments around 9.5% in 2025, marginally higher than the broader India Inc average of 9.4%. Emerging roles focused on digital health, personalized medicine, and regenerative therapies attract premium pay, signaling a shift toward innovation-led remuneration models. indeed+1
Future Outlook
Compensation growth is expected to remain robust, with greater emphasis on differentiated pay based on performance and long-term value creation. Equity-based incentives like ESOPs are increasingly significant in motivating leadership. Additionally, AI-driven human resource strategies are anticipated to optimize compensation packages, helping pharma firms maintain their talent edge in competitive markets. 6figr
Salary Comparison Snapshot (Approximate Annual Figures)
| Role | MNC Pharma (₹ Crores) | Indian Pharma (₹ Crores) | Notes |
|---|---|---|---|
| MD / CEO | 6.5 – 7.5 | 5 – 50+ | Indian CEOs receive higher profit-based payouts |
| Vice President | 0.34 – 0.54 (₹ Lakhs) | 0.30 – 0.50 (₹ Lakhs) | Base salaries largely comparable |
| Executive Director | 3 – 5 | 5 – 6 | Indian EDs often earn more due to incentives |
| Average Employee Salary | 0.25 (₹ Lakhs) | 0.20 (₹ Lakhs) | Reflects executive vs employee pay divides |
Conclusion
The Indian pharmaceutical sector showcases a dynamic and competitive environment for executive compensation. MNCs maintain an edge in fixed pay and structured benefits aligned with global standards, while Indian pharma leaders benefit from profit-sharing mechanisms producing some of the highest package levels in the industry. The sector’s resilience, innovation focus, and talent demand underpin continued compensation growth and evolving pay strategies in 2025 and beyond.
All Image are AI Generated for Illustration Only. E&OE
Sources
- 6figr.com – “Pharma Vice President Salaries 2025 in India”
- economictimes.com – “Pharma industry to outdo India Inc in 2025 pay hike: Study”
- statista.com – “GSK Pharmaceuticals India: remuneration of executive directors 2025”
- india-pharma.gsk.com – “Board of Directors and India Leadership Team | GSK India”
- economictimes.com – “At Rs 58.8 cr, Murali of Divi’s Lab highest paid Indian pharma executive”
- hr.economictimes.indiatimes.com – “CEO pay in India averaged Rs 7.2 crore in FY24, MNCs offer higher salary”
- business-standard.com – “CEO compensation in India rose to ₹7.2 crore in FY24”
- pharmaindustrial-india.com – “Pharma Sector Set to Lead India Inc in 2025 Salary Hikes”
- wtwco.com – “India to maintain 9.5% salary increase in 2025”
- linkedin.com – “Pharma to lead pay hikes race”
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- https://6figr.com/in/salary/pharmaceutical-industry–s
