Bengaluru: Former Infosys director Mohandas Pai has raised questions over the lack of significant salary growth for freshers at Infosys over the past 13 years. Comparing salary figures, Pai highlighted that while Infosys offered Rs 3.25 lakh per annum to freshers in 2011, the figure today stands only slightly higher at Rs 3.5-3.75 lakh.
“How is this justified after 13 years?” Pai questioned, pointing out that Infosys’s profits have seen substantial growth over the same period. He argued that fresher salaries should have increased by at least 400% to align with the company’s profitability and inflationary trends.
Rising Profits, Stagnant Pay
Infosys, one of India’s largest IT companies, has reported consistent growth in revenue and profits over the past decade, benefiting from global digital transformation and increased outsourcing. However, salaries for entry-level positions have remained relatively static, leading to discontent among fresh graduates and industry observers.
According to Pai, the mismatch between profit growth and employee compensation reflects poorly on the industry’s approach to talent management. “The IT sector has benefited immensely from India’s talent pool, but the lack of proportional growth in salaries sends the wrong message to young professionals,” he said.
Industry-Wide Issue
Pai’s remarks shine a light on a broader issue across India’s IT sector, where starting salaries have seen minimal growth despite inflation and a sharp rise in the cost of living. Entry-level salaries in the IT sector have largely hovered around Rs 3-4 lakh per annum for more than a decade, even as companies have recorded record-breaking earnings.
Industry experts suggest that cost optimization, automation, and oversupply of fresh graduates have contributed to the stagnation of fresher pay scales. However, they also note that this approach risks demotivating the workforce and diminishing India’s appeal as a hub for high-skilled tech talent.
Calls for Change
The debate has reignited conversations about fair compensation practices in the IT industry. Pai’s critique has found support among employees and unions advocating for higher salaries, while some companies argue that they balance fresher salaries with career growth opportunities and other benefits.
“To attract and retain the best talent, companies must ensure that salary structures reflect market realities and employee aspirations,” Pai said, calling for a recalibration of pay scales in the sector.
As discussions around wage stagnation gain momentum, all eyes are on leading IT firms like Infosys to see whether they will address the growing demand for fairer compensation practices.