The Indian IT sector has witnessed a significant rise in salaries, with median pay increasing between 12% and 37% since FY21.
Leading firms such as Infosys, Wipro, Cognizant, and Accenture have reported substantial salary hikes, reflecting business expansion, competitive hiring, and evolving workforce dynamics.
While Infosys and Wipro recorded a 30% increase in median compensation, Cognizant and Accenture saw 12% and 17.5% growth, respectively.
However, the pace of salary increments has slowed in recent years, signaling a shift in industry trends.
Salary Growth Across IT Firms
The salary hikes vary across companies, with Indian IT firms showing stronger growth compared to global counterparts.
- Infosys & Wipro: Median salaries rose from ₹7 lakh in FY21 to ₹10 lakh in FY24, marking a ₹3 lakh increase over three years.
- Tech Mahindra: Salaries increased from ₹5.3 lakh to ₹6.6 lakh, but remained unchanged between FY23 and FY24.
- Cognizant & Accenture: Median pay increased by $1,600 and $3,200, reaching $14,640 and $22,106, respectively.
Despite these gains, annual salary growth rates have tapered off, with Infosys reporting 13% growth in FY22, followed by 10.5% in FY23 and 8.5% in FY24.
Factors Driving Salary Growth
Industry experts attribute the salary hikes to multiple factors:
- Business Expansion: IT firms have scaled operations, leading to higher demand for skilled professionals.
- Competitive Hiring: Companies are offering higher salaries to attract and retain top talent.
- Skill Mix & Attrition: Specialized roles in AI, cloud computing, and cybersecurity command premium salaries.
- Inflation & Cost Adjustments: Rising operational costs have influenced compensation strategies.
Declining Growth Rates and Future Outlook
While salaries have increased, the rate of growth has slowed across the industry.
Tech Mahindra’s pay remained static, and Wipro’s growth rate dropped from 12% in FY22 to 10% in FY24.
Experts predict that salary increments may stabilize, with firms focusing on performance-based incentives rather than blanket hikes.
The adoption of automation and AI could also impact future salary trends, shifting compensation structures toward specialized roles.
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