Economics

Despite the IT Sector Boom, Freshers at TCS and Infosys Still Earn Less Than Skilled Tradesmen

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Despite India’s information technology sector experiencing significant growth, entry-level engineers at top IT firms such as Tata Consultancy Services (TCS) and Infosys continue to earn salaries that are lower than those of many skilled tradesmen, including plumbers. This disparity has raised concerns about wage stagnation for young professionals entering the industry.

Entry-level salaries at TCS and Infosys have remained around ₹3 lakh to ₹3.5 lakh per annum for over a decade. In comparison, skilled plumbers, especially those working in metro cities or on contract for large corporations, reportedly earn between ₹2.5 lakh and ₹9 lakh annually, depending on experience and demand.

Industry experts note that while the IT sector has witnessed a surge in revenue and global influence, compensation at the base level has not kept pace with the sector’s performance. Senior executives in these firms have seen their salaries grow significantly, with some receiving as much as a 1,500% increase in the last ten years, compared to a modest 47% rise for entry-level roles.

Former IT industry leaders have also criticized this trend. T.V. Mohandas Pai, former CFO of Infosys, previously highlighted the widening gap between fresher salaries and executive pay. Similarly, former HCL Technologies CEO Vineet Nayar pointed out the need for IT companies to recognize the value of young talent and adapt their pay structures accordingly.

The disparity is particularly striking when considering the rising cost of living in India’s urban centers, where most IT jobs are concentrated. Freshers earning less than ₹30,000 per month often struggle with housing, transportation, and basic expenses, pushing many to seek better-paying opportunities in startups or overseas roles.

Experts suggest that if leading IT companies fail to address these pay gaps, they risk losing talent to other sectors or international competitors. As India positions itself as a global technology hub, industry insiders say aligning compensation with economic realities is essential to sustaining its competitive edge.

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