Are you interested in pursuing a career in finance management but are unaware of how much it pays and are unsure about work responsibilities? Well then, say no more! You have come to the right place with your queries.
We will also discuss the skills that will offer you a higher salary and the career paths you can explore as a finance manager. This article will give you an insight into how fruitful it is to have a finance management career and why it’s worth pursuing a career in this sector.
A finance manager is responsible for developing and monitoring a company’s budgets. If you have a knack for numbers, becoming a finance manager would be the perfect career choice for you.
A unique highlight of this role is that finance managers work in various sectors, including healthcare, FMCG, banking, retail, EduTech, etc. In the following points, we’ll explore the average finance manager salary in India and the factors that affect their annual salaries.
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Why is the Finance Manager’s salary in India high?
When you’d look at the average monthly salary of finance managers in India, you’ll notice that their pay is significantly higher than many roles. Why is that?
The most prominent reason behind the high pay of finance managers is the specialised nature of this role and its high demand. Companies rely on finance managers to oversee their budgets and manage the financial aspects of their operations. In other words, finance managers help companies achieve their financial goals. They play a vital role in an organization’s success.
Furthermore, the demand for finance professionals is steadily rising.
As of November 2020, the mutual fund industry in India’s Assets Under Management (AUM) was INR 30 lakh crore (US$ 407.39 billion). This staggering amount is set to increase further as India’s finance sector expands over time.
In FY20, the total first-year premium for life insurance reached INR 2.6 lakh crore. Experts predict that India will be the fourth largest private wealth market in the world by 2028. Moreover, India’s mobile wallet industry is expected to grow at a CAGR (Compound Annual Growth Rate) of 150% by 2022.
These statistics show just how big the finance sector in India has become.
Needless to say, the scope for finance professionals is quite bright in India, which is probably why they earn hefty annual packages.
What is the Average Finance Manager Salary in India?
The Average Finance Manager Salary in India is (INR) ₹991,180 per annum, including bonuses, profit sharing, and commissions. The pay in this field ranges from ₹353k per annum to ₹991 per annum on average, and the income depends on multiple factors like experience, location, skills, and employer.
As a beginner in this field with less than a year’s experience, you will usually earn around an average of ₹518,021 per annum. An early finance manager with 1-4 years of experience can make an average total of ₹729,127. If you have an established mid-career as a finance manager with 5 to 9 years of experience, you can earn an average of ₹1,078,115 per annum. With 10-19 years of experience, a professional is highly likely to earn an average total compensation of ₹1,199,548 per annum.
Finance management is the largest sector in India, with diverse career opportunities. It is the Finance manager’s responsibility to take care of the financial health of an organisation. They are responsible for creating financial reports, direct investment activities, and plans for their organisation’s long-term financial goals. Hence, you can find Finance Managers’ roles in MNCs, Banks, startups, and almost every other organisation across all sectors.
What do Finance Managers do Exactly?
It is a finance managers’ responsibility is to create and monitor departmental budgets. They are responsible for making creation significant financial forecasts for their company. They work alongside other managers and their staff to determining the future budgets of the company. Their department is subjected to keeping track of ongoing expenses to ensure that they are not going over the budget.
They are also in charge of clarifying other respective managers when their departmental expenses exceed the established budget. Finance Managers also handle accurate and timely reporting of various financial reports and budgets. They take ownership of various projects, delegate them to their staff, and follow up with the team regarding projects’ progress.
Financial Managers ensure that each project meets the finalised deadlines, but they also regularly conduct performance evaluations and provide regular feedback to the staff.
Prerequisites for Becoming a Finance Manager
To work successfully as a Financial Manager, you need to have a bachelor’s degree in finance, management, accounting, or business administration. Few employers prefer to select candidates that have a CPA certification and/or MBA.
Finance Managers must be familiar with the Microsoft Office suite and their organisation’s computer system, a high-level proficiency in working with various financial applications, and reporting tools required in their field of work.
Apart from work-specific skills, Financial Managers need to have strong leadership, interpersonal skills, and sharp analytical skills. They must have an excellent command of oral and written communication. Their job requires them to build strong teamwork and work ethic.
Related Roles that Offer High Salary Packages in India
We have already discussed the average Financial Manager salary in India. This section will discuss some additional career paths for Financial Managers that offer high pay and benefits.
1. Senior Finance Manager
The senior finance manager has several responsibilities in an organisation. As a Senior Financial Manager, you will be responsible for the organisation’s monetary operations and decisions. The senior finance manager controls an extensive amount of capital that belongs to the company, and it’s inclusive of how that capital will be spent.
As a Senior Finance Manager, your role will require you to determine how the company’s money will be spent in the best way possible. That is why the professional must be well equipped in creating forecasts that can explain and predict the outcomes of specific investments.
Besides, the senior finance manager compiles information on assets and sales and communicates these figures to executives and subordinate managers in the organisation. And finally, a senior finance manager keeps the communication lines open with business partners to discuss potential joint ventures.
A senior finance manager earns an average of around ₹1,781,987 (INR) per annum in India. Your pay in this field would depend upon the experience and skills you have. As a beginner in this career with around 1-4 years of experience, you will be able to earn an average total compensation (including tips, bonus, and overtime pay) of ₹1,364,604. With 5-9 years of experience, you can earn an average total compensation of ₹1,747,760. A highly experienced Senior Finance Manager with 10-19 years of working experience will earn an average total salary of ₹1,868,770.
2. Finance Director
Finance directors hold a powerful leadership position. They are responsible for general management duties such as scheduling, hiring, and carrying out performance evaluations. The Finance Directors usually lead a finance team to develop strategic plans for the company’s finances, including the accounting duties and financial analyses and projections.
A finance director earns an average of around ₹3,604,211 (INR) per annum in India. The income in this field is also dependent on the experience and skills you have. As an early career Finance Director with around 1-4 years of experience, you will earn an average total compensation (including tips, bonus, and overtime pay) of ₹1,500,000, a mid-career level a Finance Director with experience of 5-9 years will allow you to earn an average total compensation of ₹1,500,000. A highly experienced Finance Director with 10-19 years of experience earns an average total compensation of ₹3,798,643.
3. Financial Controller
The job of a financial controller revolves around managing the financial departments of a company. These departments include the accounting department, budget department, audit department, and every other finance-related department.
Financial controllers have various responsibilities, including making profit-and-loss statements, producing critical financial reports, balance sheets, and financial prospectuses. They also create reports that predict the financial performance of a company over time. And the financial controller completes and submit any paperwork that needs to be done for federal and state regulatory agencies.
A finance Controller earns an average of around ₹1,825,945 (INR) per annum in India. The experience and skills you possess will determine your pay in this field. As an entry-level career Finance Controller with less than one year of experience, you will earn an average total compensation (including tips, bonus, and overtime pay) of ₹560,000, an early career Financial Controller with 1-4 years of experience earns an average total compensation of ₹742,381.
A mid-career level Finance Controller with expertise ranging from 5 to 9 years will allow you to make an average total compensation of ₹1,492,046. A highly experienced Finance Controller with 10-19 years of experience earns an average total compensation of ₹2,475,072.
4. Finance Manager
A finance manager is responsible for monitoring and developing the departmental budgets in an organisation. They make financial forecasts for their company and work with other department heads to prepare future budgets.
Finance managers determine the financial requirements of their organisation by tracking the performance of its various departments. They assist the operations manager in performing monthly operations reviews. They are also responsible for the financial projects of their organisation.
Finance managers should have strong leadership skills as they usually work with a team of finance professionals and colleagues. In addition to this, they must also possess excellent interpersonal and analytical skills.
What is the average finance manager salary in India?
The average finance manager salary in India is INR 9.93 lakh per annum. Bonus for this role ranges from INR 17,000 to INR 3 lakh, while shared profits go up to INR 2.85 lakh per annum.
The salary of a finance manager in India can go up to INR 20 lakh per annum depending on multiple factors such as their experience and skills.
How to Get the Top Finance Manager Salary in India?
The Finance sector offers some of the most well-paying jobs. However, it is essential to cultivate the requirements and the necessary skills for these profiles if you wish to bag high-paying roles and move up the promotional ladder.
The best way possible to build a skill set and gather experience is by taking a course on financial management. A good and well-developed course will give you a structured curriculum that will aid you in learning everything step-by-step.
upGrad is one such online platform that offers multiple online courses in various fields. One of the courses on financial management that are offered by upGrad is Master of Business Administration (MBA) in Digital Finance & Banking in collaboration with the O.P. Jindal Global University (JGU).
This course will walk you through topics like Artificial Intelligence in Business, Blockchain and Cryptocurrency, Managing Fintech Ecosystems, Financial Management & Valuation, Data Visualization in Finance Digital Fraud & Risk Analytics, and Design Thinking & Leadership Essentials for Business.
This course’s minimum eligibility is a Bachelor’s degree, preferably in science/engineering /business administration/commerce/mathematics with 50% or equivalent passing marks. Also, you must qualify for the JMAT-Online National Level Entrance Exam. Here, you will receive one-on-one mentorship with industry leaders.
Not just that, upGrad provides you with career support and an opportunity to connect with peers across the banking, insurance, fintech and financial services industries. This program is highly beneficial for Working Professionals/Business Owners/Entrepreneurs with prior work experience.
Factors affecting Finance Manager Salary in India
If you want to predict how much you can expect to earn in this field, you should be aware of the factors that affect your pay in this industry. Following factors play a huge role in determining your income as a finance manager:
We’ll explain each one of these factors in detail to see how they influence the average finance manager salary in India:
The city you work in plays a huge role in determining your pay in the finance sector. Different cities pay different salaries to finance managers.
That’s mainly because the cost of living differs from one city to another. The cost of living depends on the city’s particular climate, economy, and unique highlights.
Some cities pay above-average salaries to finance managers in India. The most notable cities in this category are:
- Mumbai (13% higher than the average)
- Chennai (10% higher than the average)
- Bangalore (23% higher than the average)
- Gurugram (34% higher than the average)
Conversely, several cities offer below-average pay to finance managers. These include:
- Delhi (6% lower than the average)
- Kolkata (25% lower than the average)
- Noida (10% lower than the average)
- Jaipur (39% lower than the average)
Another huge factor that affects finance managers’ salary in India is the amount of professional experience you have.
Entry-level finance managers earn 48% lower than the median, while early-career finance managers earn 26% lower than the median. On the other hand, late-career and experienced finance managers make 21% and 20% higher than the median respectively.
To be more specific, a finance manager with less than a year’s experience earns INR 5.15 lakh per annum on average. Similarly, a finance manager with one to four years of experience earns INR 7.32 lakh per annum, whereas those with five to nine years of experience make INR 10.7 lakh per annum on average.
Finance managers with 10+ years of professional experience earn INR 11.97 lakh per annum on average. Hence, it’s evident that as you gain more experience in this field, your salary increases.
Like any other profile, your skills affect your earnings as a finance manager. Having industry-specific skills ensures that you get paid more. Learning and developing the most in-demand skills would ensure that you get access to the most lucrative job opportunities in this sector.
The most rewarding skill for finance managers is project management, as professionals with this skill earn 83% more than the average. Tax consulting is also a highly lucrative skill for finance managers as professionals with this skill make 76% more than the average.
Other beneficial skills for finance managers are:
- Payroll tax compliance (51% more than the average)
- Financial modeling (46% more than the average)
- Forecasting (39% more than the average)
- Strategic planning (41% more than the average)
- SAP financial accounting and Controlling (43% more than the average)
- Pricing (36% more than the average)
- Product costing (39% more than the average)
Similarly, the most popular skills among finance managers are financial reporting, financial analysis, accounting, and budgeting. Possessing these skills would help you stand out from your peers and make it easier for you to bag high-paying roles.
The salary of finance managers varies according to their employers. Certain companies offer higher salaries than the average, while some others offer below-average pay.
However, you shouldn’t pick a company solely based on the paycheck it offers. You should also consider the company reputation, offered benefits, and the organisation’s work environment while selecting an employer.
Companies that offer the highest salaries to finance managers are HSBC, Standard Chartered Bank, and Novartis. At Novartis, the median pay of a finance manager is INR 18.5 lakh per annum. Similarly, HSBC offers an average finance manager salary of INR 15.26 lakh per annum, and Standard Chartered Bank offers an average pay of INR 13.8 lakh per annum to its finance managers.
Finance Manager Salary in Other Countries (UK & USA)
India isn’t the only country that offers lucrative pay to finance managers. This role compensates handsomely overseas as well. Thus, if you have the right skills, expertise, and qualifications, you can definitely aspire for a global career because the demand for talented finance professionals is rising globally.
The following statistics will throw more light on this fact:
Finance manager salary in the US
The average pay of a finance manager in the United States of America is $93,198. Pay for this role starts from $51,000 and goes up to $141,000, including bonuses, commissions, and shared profits.
Prominent skills for finance managers in the US are financial analysis, budgeting, and financial reporting.
Finance manager salary in the UK
In the UK, the average finance manager salary is £38,819 per year. Here, the pay of a finance manager starts from £26,000 per annum and can go up to £62,000 per annum.
Skills that can help you earn above-average salaries in the UK as a finance manager are performance management, business strategy, financial modelling, and business planning.
How to become a Finance Manager?
To pursue a career in finance management, you’d need the necessary qualifications and expertise. Most companies look for candidates with an MBA in Finance for this role.
Hence, the best way to start a career in this field is to get an MBA in Finance. At upGrad, we offer an MBA in Digital Finance and Banking with the OP Jindal Global University. It is a blended program (online + 1-week immersion on campus) to deliver the best learning experience possible. As it’s an online program, you can study safely from your home without interrupting your professional life.
OP Jindal Global University received the title of Institute of Eminence (IoE) from the UGC and is one of the most reputed B-schools in India.
A career in Finance management can be highly fruitful since its scope in India is expanding, the need for skilled individuals is increasing as we speak. It is an excellent opportunity to develop the right skills for becoming a well-paid Finance Manager in India.
upGrad works with 300 plus hiring partners at the moment – as a result, we are effectively able to offer candidates worthwhile placement after completing their MBA. If you are interested to do a Global MBA in Finance, upGrad provides an MBA in Finance from a top-UK school, Liverpool Business School.
We hope this article provided you with a sense of direction!.