What's your habit?

"It's not your salary that makes you rich, it's your spending habits. "

By, Charles A. Jaffe

Industry's loss is academia's gain...

ET reports: Universities which until last year lost out to corporates when it came to hiring IITians can now able to get the candidates they wanted. Among the many universities shopping for faculty members is the Alfaisal University in Saudi Arabia. It has landed up at IIT-Bombay, Kanpur, Chennai and Delhi and offered an annual compensation of 1.3 lakh Saudi riyals (approximately Rs 17 lakh), apart from housing and other facilities, to students who will soon complete their master's or PhD. "Several universities from across the globe have invited our students to take up teaching assignments. About 40 to 50 PhD and master's students have taken up such offers,'' said B K Mathur, placement chairman at IIT-Kharagpur.

In contrast to the annual compensation of around Rs 19 lakh that international universities offer, at most IIT campuses an Indian educational institute recruiting students for a teaching position typically offers an annual salary of Rs 7 lakh. Texas A&M University, seeking to recruit for its Qatar campus, is scouting IIT-Madras, as is the Hyderabad-based Indian School of Business, to recruit engineers for research activities. Lt Col (Retd) Jayakumar, deputy registrar (training and placement) at IIT-Madras said that so far, "ICFAI Institute of Science and Technology has recruited 19 students and the two Middle Eastern universities are likely to declare their selection lists soon.'' IIT-Roorkee's placements chairman P K Jain said some private Indian universities like ICFAI and Thapar University, Patiala, were also among campus recruiters. . In fact, soon the IITs themselves will get busy recruiting faculty for the new institutes they are mentoring. Already, IIT-Guwahati has recruited 19 PhD qualified faculty members for the institute it is mentoring, IIT-Patna. Other mentor IITs will soon begin recruiting. None of them, however, will be able to match petro dollar salaries.

Interesting--Salaried crorepatis double in 2 years !!

When on one hand the world’s hit with the global recession and where every now and then exists a fear of another bank being getting collapsed, on the other hand the number of taxpayers earning more than Rs 1 crore annually has doubled in just two years. And, for this increment the credit truly goes to the buoyant economic growth. Corporate sales and profits have risen by more than 30% in the last few years. That has encouraged companies to pay record salaries to their top managers, say tax experts.

According to data compiled by income-tax department, the number of salaried taxpayers earning more than Rs 1 crore (Rs 10 million) crossed 5,000 in fiscal 2008 from 2,200 in fiscal 2006. The total number of millionaires is much higher as it includes non-salaried taxpayers. The data on millionaires, gathered from employee tax deducted at source (TDS), shows the number of people earning between Rs 50 lakh and Rs 1 crore per annum has also more than doubled. It has increased from 4,400 persons in fiscal 2006 to 10,500 in fiscal 2008. The number of those earning more than Rs 10 lakh also increased to 2.24 lakh in FY08 from 87,000 in FY06.

Talking about the millionaires in India, the majority earns between Rs 10 lakh and Rs 20 lakh. In 2007-08, more than 1.5 lakh employees were earning in this income bracket. That is a 250% jump over 2005-06 .While TDS from those earning more than Rs 1 crore was Rs 4,415 crore, and those between Rs 10 lakh and Rs 20 lakh was Rs 5,770 crore. The number of taxpayers earning between Rs 5 lakh and Rs 10 lakh has also doubled in the last two years.(Source:ET)

But this pace may slow down in 2009-10. India’s GDP grew by 7.8% in the first six months of fiscal 2008 from over 9% in the previous year, and corporate bottom lines have also seen a similar dip.So,that will put pressure on salaries.