India’s leading IT firms, Infosys and Wipro, have reported a 30% increase in median employee salaries since FY21.
While Tech Mahindra saw a modest increase, global firms like Cognizant and Accenture experienced more moderate hikes.
However, the growth rate of annual increments is showing signs of cooling, influenced by factors such as competitive intensity, attrition, and inflation.
Salary Growth Trends Across IT Firms: Infosys, Wipro, Tech Mahindra, Cognizant, Accenture
Between FY21 and FY24, Infosys and Wipro’s median salaries rose from ₹7 lakh to ₹10 lakh, marking a 30% increase.
In contrast, Tech Mahindra’s median pay increased from ₹5.3 lakh to ₹6.6 lakh, but remained flat between FY23 and FY24.
Global IT firms saw comparatively lower hikes:
- Cognizant: 12% increase, with median compensation now at $14,640
- Accenture: 17.5% increase, with median compensation at $22,106
Indian IT firms raised salaries by ₹1–2.6 lakh, while Cognizant and Accenture increased pay by $1,600 and $3,200, respectively.
Cooling Trend in Annual Increments
Despite the overall salary growth, the rate of annual increments has slowed:
- Infosys: Median pay grew 13% in FY22, followed by 10.5% in FY23 and 8.5% in FY24
- Wipro: Growth rate declined from 12% in FY22 to 10% in FY24
- Tech Mahindra: Salary remained unchanged between FY23 and FY24
Industry experts attribute this trend to business growth, skill mix, attrition, and inflation.
Factors Driving IT Salary Growth
The IT industry’s salary hikes are driven by several key factors:
- Competitive hiring landscape: Companies are adjusting pay scales to retain top talent
- Skill-based compensation: Specialized roles in AI, cloud computing, and cybersecurity command higher salaries
- Inflation and cost of living: Rising expenses have pushed firms to increase compensation
- Attrition rates: Higher turnover has led companies to offer better pay packages to retain employees
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