Indian IT CEO Pay Increased 160% in Last 5 Yrs, While Freshers Pay Rises Only 4%

The salaries of top executives at TCS, Infosys, HCLTech, Wipro, and Tech Mahindra have increased by over 160% in the past five years. In contrast, freshers have seen a salary growth of just 4%, from ₹3.6 lakh to ₹4 lakh, according to the data sourced by Moneycontrol.com

The median annual pay for CEOs in FY24 was close to ₹84 crore.

The pay gap between CEOs and freshers is striking. For example, Wipro's ratio stands at 1,702:1, while TCS's ratio is 192:1.

Critics, including former Infosys CFO Mohandas Pai, have raised concerns about the growing disparity and its detrimental effect on economic consumption. Pai highlighted that rewarding top executives generously while freshers remain underpaid is wrong.

The IT sector is grappling with challenges such as high attrition rates and fewer on-site opportunities, which impact compensation structures. Experts point out that while CEO salaries align with global benchmarks, the growing disparity worsens inequality and negatively affects middle-class workers.

This issue has sparked a debate about the fairness of compensation structures in the IT industry and the need for companies to address the growing wage gap.

Pay Gap Ratios

The pay gap in India's IT sector is quite pronounced. Here are some details about the pay gap at the leading Indian IT companies:

1. Tata Consultancy Services (TCS): The CEO-to-fresher pay ratio is 192:1
2. Infosys: The CEO-to-fresher pay ratio is 677:1.
3. HCL Technologies: The CEO-to-fresher pay ratio is 707:1
4. Wipro: The CEO-to-fresher pay ratio is 1,702:1
5. Tech Mahindra: The CEO-to-fresher pay ratio is 1,383:1

These ratios highlight the significant disparity between the compensation of top executives and entry-level employees in the IT sector. Critics argue that this growing wage gap can negatively impact economic consumption and overall employee morale.

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