For decades, landing a job as a software engineer at top Indian IT firms was considered the pinnacle of the engineering dream. But today, many fresh graduates joining giants such as Tata Consultancy Services (TCS) and Infosys find their starting salaries surprisingly low compared with expectations and even some skilled trades. Entry-level packages for most IT freshers at these companies have largely remained stuck in the ₹3-4 lakh per annum range for over a decade, despite inflation and rising living costs.
This stagnation means that, in real terms, fresh software engineers in these firms may be earning less than what experienced plumbers or electricians command in some regions, challenging the long-standing belief that IT jobs automatically guarantee superior pay. For many plumbing and skilled tradespeople, annual earnings can range from around ₹2.5 lakh to above ₹5 lakh, with some seasoned professionals earning even higher, effectively eclipsing what a majority of IT freshers take home annually.
The reasons behind this salary plateau are complex. Traditional IT services firms operate on business models with tight billing rates and global pricing pressures, which — coupled with weak macro conditions in recent years — have constrained aggressive entry-level salary hikes. Further, while specialised roles in areas like cloud computing, AI, machine learning and cybersecurity may command much higher pay, these are limited in number and not representative of the bulk of fresher hiring.
Recent initiatives by these companies offer higher packages for niche skill sets — for example, specialized campus programmes may offer packages up to **₹9 lakh per annum or more — and there are even reports of offers exceeding ₹20 lakh for highly specialised roles. However, such opportunities are exceptions rather than the norm, and the vast majority of hires continue to start on modest compensation.
The stagnation in fresher salaries has broader implications for talent retention and competitiveness. Many graduates are now exploring roles in product companies, startups, freelancing and international markets where pay scales are more aligned with the skills they bring. At the same time, there has been industry commentary urging freshers and early career professionals to upskill continuously, given that pay increases in IT are often tied to specialised expertise rather than baseline engineering degrees.
In essence, while the IT sector still provides valuable career opportunities, the narrative of instant financial uplift upon joining a major firm has weakened. The reality for many fresh graduates is that starting salaries lag behind other skilled professions, prompting a re-evaluation of compensation norms in India’s tech services ecosystem.
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