Stagnant IT Fresher Salaries in India: Why the Middle-Class Dream is Slipping

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Stagnant IT Fresher Salaries in India: Why the Middle-Class Dream is Slipping

For nearly two decades, starting salaries for IT freshers in India have remained nearly stagnant, failing to keep pace with soaring education costs, urban living expenses, and inflation. While companies like TCS, Infosys, and Wipro thrive, entry-level engineers struggle to make ends meet, prompting a systemic wake-up call for the education and IT ecosystem.

Published by Somesh | February 09, 2026

For decades, a campus placement at India’s IT giants like TCS, Infosys, and Wipro symbolized financial stability and upward mobility. Today, that promise is under strain. Despite record-high revenues and global expansion, starting salaries for fresh engineering graduates remain around Rs 3–4 LPA, barely covering rising tuition fees, urban rent, and daily expenses.

The contrast is stark: executive pay and company profits have surged, while fresher compensation has stagnated, reducing real purchasing power by up to 60% over the last 18 years. Only graduates with niche skills in AI, cloud computing, cybersecurity, or data engineering can command higher packages, leaving the majority of entry-level engineers facing financial challenges.

Experts say this is a systemic issue requiring coordinated action from educators, policymakers, and IT companies. Without intervention, India risks eroding the aspirational value of engineering degrees and affecting the social contract that has long driven middle-class mobility.