Salary Gap Widens in India’s IT Sector- Report
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The salary gap between top executives and employees has widened at several of India’s leading IT companies.
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The latest annual reports from major IT firms show that while CEOs received significant compensation increases during FY2025-26, most employees received salary hikes in the single-digit range.
The trend comes at a time when the IT industry is facing slower business growth, cautious spending by global clients, and delays in technology projects.
Companies have remained careful about increasing employee costs as they continue to deal with an uncertain business environment.
CEO Pay Gap Increases at Major IT Firms
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Annual report disclosures of TCS, Infosys, Tech Mahindra and LTIMindtree show that the ratio of CEO compensation to the median employee salary increased compared with the previous financial year.
This means CEO salaries grew faster than the earnings of the average employee in these companies. The reports also indicate that employee salary hikes remained modest, with most professionals receiving annual increments in the single-digit range.
Wipro Stands Out
Among the large IT companies, Wipro was the only exception.
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The gap between CEO pay and the median employee salary narrowed during the year because CEO Srinivas Pallia’s remuneration declined compared with the previous year.
Employee Salary Hikes Stay Low
The days of double-digit salary hikes for most IT employees appear to be over for now. Over the last two years, leading IT companies have reduced annual increments as clients continue to cut discretionary technology spending and delay new projects.
Many companies have also slowed hiring and focused on improving employee utilisation while investing in artificial intelligence and automation. This has helped them manage costs during a period of slower revenue growth.
Industry experts say this reflects the current business environment, where companies are focusing on profitability while waiting for demand to improve.
As a result, salary growth for employees has remained limited even as compensation for senior executives has increased in several firms.
What the Trend Shows
The latest annual reports highlight the growing difference in salary growth across different levels of the organisation.
While companies continue to reward their top leadership based on business performance and long-term incentives, most employees are receiving smaller annual pay increases.
With demand expected to recover gradually, salary decisions in the coming year are likely to depend on business growth, new deal wins and overall market conditions.
Until then, IT companies are expected to continue balancing employee costs with investments in AI, digital services and other growth areas.
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About the Author
Sheetal Singh
Contributing Writer