- Entry Salaries Remain Stagnant
- Inflation Erodes Real Incomes
- Profits Rise, Pay flat
- Glittering Campuses, Shrinking Pay
Article Today, Hyderabad/Bangalore:
India’s information technology (IT) sector projects global strength. Glass towers, expanding campuses and billion-dollar revenues define its public image. However, entry-level salaries in major firms have remained largely unchanged for over a decade. Fresh graduates in 2026 continue to receive annual packages close to Rs. 3 to 4 lakh, figures similar to those offered in the early 2010s.
Stagnation Across Major Firms
Leading companies such as Tata Consultancy Services, Infosys and Wipro dominate global outsourcing markets. They report steady revenues and expanding international contracts. Yet, entry-level compensation has shown limited growth. Industry data indicates that several firms continue to offer starting packages between Rs. 3 lakh and Rs. 3.8 lakh per annum. Adjusted for inflation, the real value of these salaries has declined significantly.
Inflation And Urban Costs
Meanwhile, living expenses in technology hubs such as Hyderabad and Bangalore have risen sharply. Monthly in-hand salaries for freshers often range between Rs. 27,000 and Rs. 30,000. Rental costs in metropolitan areas consume up to 40 or 50 percent of this income. Transportation, food and healthcare expenses further reduce disposable earnings. As a result, many young engineers report financial strain despite working in globally recognised companies.
Profit Growth, Pay Disparity
At the same time, executive compensation in large IT corporations has grown substantially. Annual reports show multi-crore remuneration packages for top leadership. The gap between executive pay and entry-level salaries has widened over the years. Analysts argue that while companies justify wage restraint through market competition, profit margins have remained stable. In addition, shareholder returns have continued to expand.
Oversupply Argument Examined
Recruitment experts often attribute stagnant wages to the high number of engineering graduates entering the job market each year. India produces hundreds of thousands of engineering graduates annually. Companies argue that abundant supply allows them to maintain lower entry pay. However, labour economists note that long-term wage stagnation in a high-growth sector raises structural concerns. They point out that productivity gains have not translated into proportional income growth for junior employees.
The Silent Workforce Pressure
Young professionals working on high-value global projects increasingly question the disparity between project revenues and personal earnings. Many contribute to software systems used by international clients across finance, healthcare and retail sectors. Nevertheless, their starting compensation remains modest compared to global standards. Even firms such as Cognizant, which operate large workforces in India, face similar scrutiny regarding entry-level pay structures.
Long-Term Implications
Economists warn that prolonged wage stagnation may affect talent retention. Skilled professionals may seek opportunities abroad or move to emerging technology startups offering higher compensation. Therefore, the sector faces a critical question. Can it sustain global leadership while maintaining flat entry wages amid rising living costs?
India’s IT industry remains a cornerstone of the national economy. However, the debate over fair compensation continues to intensify. The coming years may determine whether wage structures evolve in line with economic growth or remain anchored to past benchmarks.
