Salary, wage expenses growing faster than revenues for India Inc

The analysis is based on a common sample of 667 companies from BSE 500, BSE Mid Cap and BSE Small Cap Index excluding their listed subsidiaries

Expenses on salaries and wages by firms in India have grown faster than net sales (gross inter­est income in the case of lenders) in nine of the last 15 years.

  This has led to a steady rise in the share of net sales that companies spend as employee expenses. The ratio of expenses on salaries and wages expenses to net sales improved (which means it declined numerically) during the post-pandemic boom in demand growth in FY22 and FY23, but employee expenses are again growing faster than revenues, eating into companies’ margins and profits.

  The six years in which