When asking whether it is ethical to pay someone less for the same job in a country such as India many things must be taken into account. What is the average salary in the country? How much further does your money go in that country etc?
If a company has a software tester in Palo Alto, California who makes $65,000 a year and a person with an identical job in Bangalore, India who makes $15,000 this at first seems unfair to the Indian. In reality it is more unfair to the American.
The average salary in India for a software tester is 303, 098 rupees which comes out to roughly $6,722. In Bangalore the average salary encompassing all jobs is the highest in the country with 537,968 rupees which converts to roughly $11,930 (payscale.com) (coinmill.com)
The average salary of someone in Palo Alto, CA is $75,626. (simplyhired.com) In contrast the Indian employee is not only making well above the national average for his job, but also above the average salary for the best paid city. It can be fairly assumed that this would translate into many benefits in his country as the money would go much further.
By the same token the employee in California is making less than average in a city with a very high cost of living. Not to mention the fact that he could be in danger of losing his job to the employee in India who cost the company less.
The problem with inflation in this country is that we try to hold the rest of the world to our standard when it comes to terms of money. If we ask our grandparents how much a car cost a few decades ago their answers are usually astonishing and around the 1,000-2,000 dollar mark. The trick was that they made less, just like that employee in India.
http://www.payscale.com/research/IN/Country=India/Salary
http://www.payscale.com/research/IN/Country=India/Salary/by_City
http://coinmill.com/INR_USD.html
http://www.simplyhired.com/a/local-jobs/city/l-Palo+Alto,+CA
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