Jul 19, 2024 10:42 AM IST
IT companies give single digit increments to employees who don’t have niche skills due to large availability of entry-level talent and increasing business cost.
Employees of India’s top three IT companies with only generic skills are seeing salary hikes fall to single-digit percentages of 5-9% in the financial year 2023-24 after a two-year period of double-digit growth, the Times of India reported, adding that this is due to clients of the companies reducing their spending due to economic challenges.
What percentage of salary hikes do India’s top IT companies give?
Infosys, which is known for having the highest annual increments among its peers saw its average increments drop to 9% compared to 9.9% in the previous year and 14.6% during the year before that, according to the report.
Also Read: Gautam Adani and Torrent vie to buy IPL team Gujarat Titans from CVC Capital: Report
For TCS, the average hike was between 7-9% in 2023-24 compared to 10.5% in 2021-22. Wipro saw a 9.4% median hike compared to the previous year. Tech Mahindra and HCLTech had average hikes between 5-7%.
Why are salary hikes in IT companies coming down?
Salary hikes are falling as IT companies see falling profit margins and increasing business costs, along with the increasing availability of entry-level talent, Times of India quoted Pranshu Upadhyay, regional director and head of India technology practice at recruitment consultancy Michael Page, as saying.
Also Read: China’s Xiaomi overtakes South Korea’s Samsung in India’s smartphone market
However, this is for those with generic IT skills. Techies with niche skills have been getting higher hikes in the range of 12-15%, the report quoted Milind Shah, MD of Randstad Digital in India, as saying.
These areas of specialisation include AI, ML, cybersecurity, cloud computing, and data analytics, according to the report.
Also Read: OpenAI’s GPT-4o mini model is battling Gemini Flash and Claude Haiku
This is not just the case with IT companies. A Mint report citing data from consulting firm Aon showed that salary hikes are the lowest in three years across all sectors with companies offering a 9.3% in 2023-24 compared to 9.7% the previous year.
Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!
See more
