High IT salaries only for a few
Date: Wednesday , August 01, 2007
The general perception of IT as the best paymasters remains a myth. The reality is that only a very small number get a six-figure monthly salary.
According to newspaper sources, the number of persons who draw salaries over Rs 2 lakhs per month or over Rs 24 lakhs per annum, at companies like TCS, Infosys, and Wipro show that this group accounts for only 0.5 percent of a company’s total headcount.
At TCS, out of 85,582 persons employed at end of FY07, only 221 employees get salaries over Rs 24 lakhs p.a, which accounts for 0.26 percent. While 531 Infosys employees out of 72,241 employees in FY07 draw Rs 24 lakh p.a., which accounts for 0.74 percent.
In TCS, only 11 persons get only Rs 50 lakhs p.a., which is 0.01 percent of total employees. Whereas, 32 persons draw a similar salary at Infosys, which accounts for 0.04 percent of total employees, and at Wipro 39 persons get above Rs 50 lakhs p.a., which accounts for 0.06 percent of total employees.
According to experts, apart from the best salaries, many high performers have performance variables and ESOPs that contribute to a larger overall pay packet. About 25 to 30 percent or 2.5-300,000 employees of the one million strong Indian IT industries get salaries over Rs 1 lakh per month or Rs 12 lakh per year. And about one to two percent of this number i.e., 10,000-20,000 people across the industry earn Rs 24 lakh and above as salary, excluding ESOPs and extra benefits. Moreover, according to the sources, the average time taken for a fresher to break the one lakh rupees salary mark depends on the institute the person comes from and the base salary in the campus offer letter.