Mohandas Pai, Chairman of Aarin Capital and former CFO of Infosys, has sharply criticized the state of entry-level salaries in India’s IT sector. In a video interview to the Hindustan Times, Pai accused the industry of exploiting freshers, despite boasting about record profits and paying top executives exorbitant salaries.
“They’re exploiting the entry level. I’ve been talking about them exploiting people because they [have] surplus labor, desperate young people who are getting educated and want to work. It is very unethical, not correct, and against what the industry stands for,” Pai said.
Pai pointed out that while CEO salaries have seen massive hikes, entry-level salaries have remained nearly stagnant over the past decade.
Freshers who earned ₹3.25 lakh annually in 2011 now make only ₹3.50-₹3.75 lakh in 2024—a mere 15% increase over 13 years. In contrast, CEO salaries have risen by 50-60% in just the last five years, with the median pay of top IT executives surging 160% to reach ₹84 crore annually, Pai had stated earlier.
“You give the CEO ₹50 crore, ₹60 crore, ₹70 crore, whereas seven to eight years back they were getting ₹8-10 crore. Now you don’t want to pay freshers? I think it’s terrible. This is not the way for the industry to lead the country,” Pai remarked.
He further argued that the industry has been exploiting freshers for over a decade, with stagnant wages disproportionately affecting the bottom 50% of employees.
How worried should techies be about AI?
Despite concerns over job losses due to AI, Pai remains optimistic about India’s role in global tech hiring. He predicts that more technology jobs will come to India as companies shift AI-first strategies.
“If you want to do AI in Western markets, you need data scientists who are not available there. So, the work will come to India,” he stated.
Pai believes that job losses will be more pronounced in the West, where companies are paying $150,000 per employee but can replace them with AI at a fraction of the cost. In India, productivity gains from AI in service companies are expected to be around 10-12% annually, leading to more projects and spending.
With economic certainty improving and global spending set to rise, Pai forecasts better hiring prospects in the coming years.