Mohandas Pai, former CFO of Infosys and current Chairman of Aarin Capital, has raised a critical issue regarding the growing wage disparity in India’s IT sector.
In a recent statement, Mohandas highlighted the stark contrast between the salaries of top executives and entry-level employees.
He called for urgent reforms to address this imbalance.
Infosys Ex-CFO on Growing Wage Disparity
Mohandas pointed out that while executive salaries have surged by 50-60% over the past five years, the wages of entry-level employees have seen a mere 15% increase.
He cited that freshers who earned Rs 3.25 lakh annually in 2011 are now making only Rs 3.50-3.75 lakh in 2024.
This disparity is even more pronounced for contract workers, whose wages have increased by just 1-2% over the past five years.
Mohandas emphasized that there is a significant degree of exploitation of the bottom 50% of employees in the IT sector.
He urged businesses to focus on fairness, particularly in services and distribution sectors, where profits remain robust despite automation reducing labor requirements.
Mohandas called for higher minimum wages and a reevaluation of compensation policies to ensure fairer pay for all employees.
CEO Compensation and Fairness
Mohandas questioned the justification for the disparity in salaries, asking, “What was the CEO paid in 2011? What is the CEO paid now? It has to be fair.”
He advocated for linking CEO pay to performance and ensuring that compensation policies are fair and transparent.
Mohandas Pai’s remarks echo the findings of a study cited by Chief Economic Advisor V. Anantha Nageswaran, which revealed that while company profits hit a 15-year high in March, employee wages haven’t kept pace.
Mohandas’ call for urgent reforms comes at a time when the IT sector is facing scrutiny for its treatment of entry-level and contract workers.
He stressed the need for businesses to pay their employees better. Additionally, he emphasized that their compensation should reflect the value they bring to the company.
Mohandas’ advocacy for fair wages and better treatment of employees highlights the systemic issues within the industry.
Addressing these issues is crucial to creating a more equitable work environment.
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