Why do Private Companies (Not MNC's), pay less despite having good profits & revenue?

This is not correct. I am in the private after a stint as an officer in government. Private salaries is 4 time more than government jobs

I have modified the topic name, thanks for your reply, I could correctly express what I wanted to ask, in private companies other than MNC's salaries are less & increments as well are not organized or set in a proper manner.

Not all private companies pay less than what one deserves! I have worked for a private company for 4 years involved in Bridge construction for BRO (Border Road Organization) which paid me more than what government or MNC  pays for the same post. I think you're talking about non-organized private sector which has yet to do a lot. 

How can we come to know whether an organization is organized or non organized? I was under the impression that all private non MNC's work in the same manner giving less salaries & less increments.

As Sunil and MG Singh has rightly mentioned, many private organizations pay higher salaries than the government. Such organizations also give many perks and other benefits apart from salaries. These perks might include medical reimbursement, rent allowance, vehicles, travel allowance, PF and other benefits. But those private organizations working on small scales cannot give their employees high salaries.

In India the small private unorganized companies / individual do pay less but that is to be expected as they have very little resources. 

MNCs pay good along with other perks. They are at par or even better than Government salaries. The only negative being the cut throat competition to perform and job insecurity with the needs and fluctuation in Global market.

Smaller private organizations do not pay much because they have limited resources,and  their turn over is not as huge as MNCs . Moreover, these organiztions do not hire or ask for high grade qualifications or a great experience. You do not have to undergo cut throat tough competition to get the job.

Arunima Singh wrote:

MNCs pay good along with other perks. They are at par or even better than Government salaries. The only negative being the cut throat competition to perform and job insecurity with the needs and fluctuation in Global market.

Smaller private organizations do not pay much because they have limited resources,and  their turn over is not as huge as MNCs . Moreover, these organiztions do not hire or ask for high grade qualifications or a great experience. You do not have to undergo cut throat tough competition to get the job.

True, but will it not be good to formalise this sector as well & bring it into some uniformity in terms of pay & benefits compensation package?

An MNC job is good in many respects but the pension scheme is not at all a respectable one. I feel this is a big constraint for the employees of MNCs. As retirement comes nearer the staffs become too worried because of a huge deficit in earning.  

There are any number of pension schemes that one can join while working , both run by govt and private companies  ... If one is careful with their earning it  is not difficult to plan for future financial security

There are many private companies are there in India where they will be paid more than government jobs. But, worst part in Private companies are our jobs are not secure and we wont get any earnings after our retirement. 

And there a policy in a private companies like "Less pay and get more work". 

In private job they pay good money after good experience but if you want to earn more money then need to change job quickly then you can grow 50 to 70 percent in 2 to 3 years.

In general, any company would like to hire candidates for as less money as possible. It's just the way it goes. We need to negotiate well for the best salary.

Sheetal Kumar N wrote:

In general, any company would like to hire candidates for as less money as possible. It's just the way it goes. We need to negotiate well for the best salary.

True...however, in private MNCs it all depends on how best you perform and are able to present your performance well in front of the top brass. Only then you can earn really well!

If you are joining as a fresher, you background matters and students from some institutes are recruited at higher salary than others. If you are switching company then your current pay scale becomes a benchmark for your future salary.

Private companies MNCs or start-ups pay you based on various factors two of which are most important is your qualification, your qualification whether it is apt for the job role you are being hired for, your experiece (newbie/veteran) etc. Most orgs also look for the right attitude as well. One you clear all these parameters, it is up to the individual to make it big in any company, be it private, big MNCs, start-ups. Getting promotions, is one thing but making sure you continue getting bonus etc. depends how much effort u put in your work irrespective of the role.

Mousumi Ghosh wrote:

Private companies MNCs or start-ups pay you based on various factors two of which are most important is your qualification, your qualification whether it is apt for the job role you are being hired for, your experiece (newbie/veteran) etc. Most orgs also look for the right attitude as well. One you clear all these parameters, it is up to the individual to make it big in any company, be it private, big MNCs, start-ups. Getting promotions, is one thing but making sure you continue getting bonus etc. depends how much effort u put in your work irrespective of the role.

It is not always true that private company paid less than government companies. In private package is depends on your exposer. Better you performed you will get better. 

It is just because of so much population or unemployment . the work which we are doing in the salary of Rs. 25000/-. Some people ready to do the same work in Rs. 15000/- . Because of that companies get the option and they give less salary..

simmi wrote:

It is just because of so much population or unemployment . the work which we are doing in the salary of Rs. 25000/-. Some people ready to do the same work in Rs. 15000/- . Because of that companies get the option and they give less salary..

Unemployment is main reason of low payment in private sector. Employees of private sector are not organized. 

Its not true, few private companies pay handsome salaries. I am in a mnc but they take lots of work from us but pay good salary.