Rs 3.16 LPA in 2007, Rs 3.36 LPA in 2026: India's IT fresher pay freezes even as revenues double

For a generation of middle-class families, a campus offer from Tata Consultancy Services, Infosys or Wipro symbolised arrival.

It meant stability after years of entrance exams, coaching classes and rising education costs. A first IT job was not just employment, it was assurance: steady income, social standing and a predictable route to financial security.

That assurance is weakening.

India’s IT services sector is financially stronger and more global than ever. Revenues are at historic highs, balance sheets remain solid, and hiring continues. Yet for engineering graduates stepping in at the entry level, the economics look markedly different.

Base salaries for freshers have barely changed in close to two decades. Once tuition inflation, soaring rents and everyday expenses are factored in, the real value of that starting pay has shrunk significantly.

The 19-year comparison

A frequently cited example captures the stagnation. A Reddit post notes that in 2007, a TCS Assistant Systems Engineer Trainee earned roughly Rs 3.16 lakh per annum. In 2026, the same position pays around Rs 3.36 lakh per annum, according to Careers360, a rise of just Rs 20,000 annually over nearly nineteen years.

The pattern extends across the sector. Entry-level packages at Infosys, Wipro and multinational firms such as Accenture largely remain in the Rs 3–4 LPA range. On paper, salaries appear steady. In purchasing-power terms, they have declined.

Costs up, pay flat

While fresher salaries have remained largely static, the cost of obtaining the degree has climbed sharply. The expense of a BTech has nearly quadrupled since 2010, driven by rising fees and the expansion of private institutions. Families now commonly spend between Rs 10–25 lakh, often financed through loans.

At the same time, urban living costs, rent, transport, food and healthcare, have risen steadily. The supply of engineering graduates has also multiplied seven to eight times, intensifying competition for entry-level roles.

The mismatch is clear: industry profits have expanded, education costs have surged, graduate numbers have increased, but starting pay has not kept pace.

Declining purchasing power

In the late 2000s, a Rs 3–3.5 LPA salary could support a basic but stable lifestyle in major IT hubs. Today, the same income often struggles to cover deposits, EMIs and routine expenses. Estimates suggest that real purchasing power for fresh engineers has dropped by 50–60 percent compared with fifteen to eighteen years ago.

A broader concern

Saurabh Kumar, Founder & CEO of Shiksha Nation, told India Today, "Offering top percentile JEE graduates a starting salary of around Rs 3 lakh per annum is a wake-up call for India's education-industry ecosystem."

"Exceptional academic achievement must translate into fair market value, not just headline offers, but meaningful wages that recognise talent, encourage innovation and support a decent quality of life. It's not just an engineer's problem, it's a systemic challenge that educators, industry and policymakers need to address together," he added.

This points to a structural imbalance between the cost of education, the volume of graduates entering the market and the way entry-level skills are priced.