22 Jan How much does MBA increase your salary?
A good MBA program is indeed an effective launching pad for any career aspirant.
In India, the average salary for an MBA graduate varies from 4 lakhs to 20 lakhs. There are broadly three tiers of B-Schools. The first tier B-Schools, that includes the best of IIM’s, SP Jain, MDI, XLRI etc., that offer salary range of Rs.10 to 20 lakhs. The second and third tier B. Schools offer salary range of 6 to 12 lakhs.
A good MBA degree should be in a position to offer anything between 2 to 8 lakhs increase from the current salary one who is drawing from the existing job. For example, an engineer who earns around 8-10 lakhs with four years of experience should be in a position to add another 5 lakhs after completing his MBA from a reputed B-School. It is important to have a good score (99 percentile) in CAT, an eligibility test which is conducted every year to get admissions into reputed B-Schools.
On the other hand, fresh graduate students who are working in mediocre firms without MBA should get at least a couple of lakhs as salary. He or she would be in a position to add a few more lakhs in compensation after completing MBA program.
As a ball park figure, one can say an MBA aspirant would get approximately 35 per cent rise in his or her salary after completion of MBA program.
-by Dr. Chidambaram Babu, Director