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

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. 

Private companies work on this strategy, they pay you less than you deserve to maximise your profit. If they pay you exactly what the client is paying for your work then how will the private companies make profit and expand .

arjun sai wrote:

Private companies work on this strategy, they pay you less than you deserve to maximise your profit. If they pay you exactly what the client is paying for your work then how will the private companies make profit and expand .

It depends how much profit they want to have and how much they want to distribute the profit to their employees. 

anil wrote:

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. 

I too have noticed that Private companies are not organised. There are lot of politics & there is less transparency. There is no proper system in place. May be it is only in some companies though.