“A data analyst helps facilitate informed business decisions by wrangling insights from data using various skills, tools and techniques,” this is a data analyst job description we had written some time ago. We choose this broad definition for a reason: Because the industry paints a data analyst’s role in similar broad strokes. In some companies, a data analyst might be someone who downloads data into spreadsheets and runs periodic pivot tables — freshers tend to be in these roles. In others, they might be a database expert who designs and maintains database systems — these are experienced specialist positions. As a result, the data analyst salary also tends to sit across a wide range.
What is the Average Data Analyst Salary?
Well, it depends. On skillset, specialisation, experience levels, location, industry, type of organisation etc. A recent study shows that data analysts get paid, on average, 26% more than software engineers in India. The more and more data analysts specialise and work on complex data, their ability to earn higher pay also increases.
Average Data Analyst Salary
One of the key sources of salary information is the community, like LinkedIn, PayScale, Glassdoor etc., where employees post their salaries online. The LinkedIn community, of over 3500 members, says that the average data analyst salary is Rs. 4,25,000 /yr, with minimum salary at Rs. 190,000 to 930,000. Freshers can expect anywhere between Rs. 150,000 to Rs. 400,000. Senior data analyst salary, for those with 6-14 years of experience, can go up to Rs. 15,00,000.
Experience-wise Salary Breakup
The data from 5000+ members of PayScale, an online platform focussing exclusively on salary and remuneration, agrees with the above range. In addition, it offers more clarity through an experience-wise break up. This shows that the senior data analyst salary can reach Rs. 20,00,000.
City-wise Salary Range
What is more interesting in the PayScale numbers is that the salaries also vary significantly based on location. For instance, data analysts in Bangalore earn 19.7% more than the national average, according to PayScale; Gurgaon and Pune also pay 8-10% higher. On the other hand, Delhi, Mumbai and Hyderabad are seen to be paying 2-5% lesser than the national average.
What Industry Pays Highest for Data Analysts
Typically, data analyst jobs are available in three kinds of organisations:
- Captive centres, where organisations build data analytics teams in-house. For example, Google, Ola, Swiggy etc. have captive teams. This is also applicable for large enterprises like Citibank, Walmart etc.
- Outsourced IT services firms, where data analytics of clients are performed in the ITES model. Infosys, Wipro, Accenture etc. often work this way. There are also several small IT services companies who hire data analysts for these projects.
- Specialised analytics startups, where small teams build analytics products, mostly through SaaS models.
Depending on which kind of organisation you are employed by, the data analyst salary will vary. Captive centres pay the best among all models, but there will also be fewer jobs in this category. On the other hand, outsourced analytics firms might pay lesser, but there will be more opportunities in general, and the ability to switch projects and gain horizontal experience is higher.
Within captive centres, banking and financial services surpass any other industry in the number of candidates it is hiring. Studies show that about 38% of all analytics roles posted are in this industry. Energy and mining, healthcare, and e-commerce are the other industries with a high number of open opportunities.
On the salary front, LinkedIn users say that finance, retail and healthcare are the three top-paying industries for data analytics jobs. Compared to the Rs. 425,000 we discussed above, the finance industry pays Rs. 686,000, retail Rs. 570,000 and healthcare Rs. 573,000 as median salary. IT services pay an average data analyst salary of Rs. 400,000, which is even less than the overall average.
Data Analyst Salary Based on Skillsets
PayScale finds that data analysts whose skills are restricted to Microsoft Office or Excel tend to earn much less than those who are well-equipped in SQL, statistical analysis etc. Other studies show that Python commands the highest salary among analytics professionals, with nearly Rs. 15,00,000 as the median income. However, professionals with Java, R, Tableau, SAS and SPSS are also in high demand. The high salaries in the job market indicate two things:
(1) The demand is high, so companies are willing to pay higher salaries to hire the right candidates immediately.
(2) The supply/availability of data analyst skills in the market is low. Year after year, we see that the number of data and analytics roles is rising, but highly skilled professionals in the market are but a handful.
By upskilling yourself in data analytics, you would set yourself up for a successful career in future technology, as well as boost your salary. If you don’t know where to start, consider the 1:1 mentoring-led, project-driven online learning program in data analytics from Springboard. With our program’s job guarantee, you will earn back multiples of the course fee in just a few months!