Veteran industry leader Mohandas Pai has raised concerns about the persistent stagnation in entry-level salaries within the Indian IT sector. He highlighted that despite the rapid growth of the industry and significant profits, freshers’ wages have remained largely unchanged for over a decade. Pai emphasized that while top executives receive massive paychecks, new employees struggle with minimal compensation.
Addressing the issue, Pai argued that the IT sector has been systematically underpaying freshers, creating an imbalance in the distribution of earnings. He pointed out that while the industry thrives on innovation and talent, companies have failed to fairly compensate those entering the workforce. This exploitation, he noted, disproportionately impacts the bottom 50% of employees.
Pai criticized the stark contrast between the earnings of top management and entry-level employees. He questioned how CEOs receive salaries as high as ₹50 crore while freshers are stuck with outdated pay scales. According to him, this widening pay gap discourages young talent and could impact India’s long-term growth in the tech industry.
He also called on IT companies to reconsider their wage structures and ensure fair compensation for freshers. Pai argued that competitive salaries are essential to attract and retain skilled professionals in a global job market. Without necessary revisions, the industry risks losing bright young minds to better-paying opportunities elsewhere.
Concluding his remarks, Pai urged industry leaders to address the stagnation in freshers’ salaries and create a more equitable system. He stressed that fair compensation is not just a moral responsibility but a necessity for sustaining India’s dominance in the global IT sector.
