Mercer, the well known HR advisory firm released its survey results recently of IT Pay Around the World. The survey compared the total annual cash compensation and total remuneration information for IT staff in 6,545 companies in 35 different countries.

6 of the world’s 10 highest-paying countries for information technology (IT) managers are in Western Europe. Switzerland pays the highest salaries followed by Denmark, Belgium and the UK. The United States and Canada are ranked 6 and 8, respectively. Indian IT managers were fourth from the bottom, earning an average of $25,000.

In the most-junior career band surveyed, defined as IT Professional – Experienced, employees in Switzerland earn the highest salaries at an average $101,510, ahead of Belgium (2), Germany (3) and Denmark (4). The UK ranks fifth with an average of $64,340 followed by the US (6). In the lower-paying countries, Vietnam again pays the least at $5,570, followed by the Philippines and India at $8,130 and $9,630, respectively.

The survey also highlighted that the relationship between experience/skill level and pay is different in different countries. For example, large pay gaps exist between junior and senior career streams in Indonesia, India, Brazil, Chile and Vietnam, which have the highest pay progression ratios between the lowest and highest career streams. In the US and many western European nations, pay increases more proportionately with experience.

Here’s how I see this survey. Although the survey may point to Indian IT professionals being paid less, it is a fact that the profitability of many mid-size Indian IT companies is under pressure. They have to pay higher compensation to attract and retain talent while the appreciation of the rupee is eroding their profit margins.