TCS and Infosys Entry-Level Salaries Haven’t Changed in 15 Years

The Indian IT sector is facing a growing debate over stagnant entry-level compensation as industry giants like Tata Consultancy Services (TCS) and Infosys continue to offer starting salaries in the range of Rs 3 lakh to Rs 3.1 lakh.

Despite decades of inflation and a dramatic surge in the cost of living, these “floor” packages for engineering graduates have remained largely unchanged for nearly 15 years, sparking concerns regarding the attractiveness of the sector for new talent.

TCS and Infosys Salary: The Decade-Long Stagnation

In the early 2010s, a starting salary of Rs 3.2 lakh was considered a competitive benchmark for freshers.

Fast forward to 2026, and the baseline for “Ninja” roles at TCS or “System Engineer” roles at Infosys remains strikingly similar.

While these companies have introduced higher-tier packages for specialized talent—such as TCS’s “Digital” or “Prime” tracks which offer between Rs 7 lakh and Rs 11 lakh—the vast majority of mass-recruited graduates still fall into the lowest bracket.

Analysts point out that when adjusted for inflation, the real value of these salaries has effectively plummeted by over 50% since 2010.

Economic Pressures and Utilization Shifts

The persistence of these low starting wages is attributed to the traditional “pyramid model” used by Indian IT firms to maintain healthy operating margins.

By keeping a large base of low-cost junior employees, companies can offset the rising costs of senior leadership and specialized AI talent.

However, the current environment is challenging this model.

With utilization rates at record highs and a visible slowdown in mass hiring due to global macroeconomic headwinds, the “bench” is shrinking.

Furthermore, the rise of Global Capability Centres (GCCs) in India, which often offer 40-60% higher starting pay, is creating a talent drain away from traditional IT service firms.

The Skills Gap and Future Outlook

Industry leaders argue that the stagnant pay reflects a significant “employability gap” among Indian graduates, necessitating months of expensive internal training.

However, critics suggest that as generative AI begins to automate entry-level coding tasks, the demand for “low-cost” manual labor may further decrease, potentially leading to a bifurcation of the workforce.

For now, the Rs 3 lakh salary remains a controversial hurdle for millions of aspiring engineers entering an increasingly expensive urban economy.

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