India’s IT giants Wipro and Tech Mahindra are tightening their belts — and employees are feeling it. For the first time in nearly a decade, both firms have reported a drop in median pay, signaling a noticeable shift in how tech talent is being hired and compensated.
Wipro’s median salary slipped by 0.6%, and Tech Mahindra’s tumbled a sharper 6.52% in FY25, according to data from their annual reports. The decline comes even as both companies added more employees — suggesting a deeper recalibration beneath the surface.
More Heads, Less Pay: What’s Really Going On?
On paper, growing the workforce sounds like good news. More jobs, right? But when you zoom in, the reality is a bit more complicated.
The headline numbers show Wipro’s median pay at ₹9.78 lakh this year. Tech Mahindra’s is more layered: ₹18.3 lakh for men and ₹15.4 lakh for women. But median salaries fell despite the workforce getting larger.
One reason? Freshers. And lots of them.
Hiring at entry-level salary bands is helping companies keep margins steady. It’s not hard to see why, given the macroeconomic headwinds and the growing costs of investing in tech like AI, automation, and cybersecurity.
This isn’t just a one-off either.
Wipro has seen its median pay fall three times in the last decade. Tech Mahindra? Six times. So, while this is the first year they’ve both declined at the same time since 2017, it’s not entirely out of the blue.
Top Dogs TCS and Infosys Buck the Trend
It’s not all gloom across the sector. At the top, it’s a different story.
Tata Consultancy Services (TCS) raised median employee pay by 6.3%. Infosys went even higher — a 9.6% boost, per their FY25 reports. These firms aren’t just growing; they’re rewarding talent more generously too.
There’s no single reason why, but scale certainly helps. TCS, with its mammoth global footprint and sticky long-term contracts, has room to spend. Infosys, on the other hand, has doubled down on high-margin deals and global digital transformation mandates.
One company that’s yet to show its hand? HCLTech. But if past trends hold, it’s unlikely to report a drop — it’s the only one among the top five IT firms in India that’s never logged a decline in median employee pay.
Cost Control or Career Stall?
Let’s be real — lower median pay doesn’t mean the sky is falling. But it does have ripple effects.
Mid-level employees may start to feel boxed in. Career growth might feel slower if a flood of junior hires enters the system. Morale can take a hit too. There’s a psychological cost to seeing your company’s pay report and realizing your median earnings are going backwards.
Yet from a financial lens, this makes sense.
Companies are exploring every angle to keep profitability on track:
Hiring freshers at lower pay scales
Delaying non-essential bonuses or increments
Streamlining management layers to cut overheads
Tech Mahindra and Wipro are trying to stay lean without laying people off en masse — at least for now.
Table: Median Pay Movement Among Top Indian IT Firms in FY25
Here’s a quick look at how median salaries fared this year across the big five:
| Company | FY25 Median Pay Change | FY25 Median Pay (Approx) |
|---|---|---|
| Wipro | -0.6% | ₹9.78 lakh |
| Tech Mahindra | -6.52% | ₹18.3 lakh (men), ₹15.4 lakh (women) |
| TCS | +6.3% | Not disclosed |
| Infosys | +9.6% | Not disclosed |
| HCL Technologies | TBD | TBD |
So, clearly, we’re seeing some divergence here. And not everyone is cutting back.
The AI Investment Factor
There’s also a big elephant in the room: artificial intelligence.
Firms are investing heavily in AI and automation. These technologies promise long-term gains, but the upfront costs? They’re high.
Reducing compensation outflows now could be part of a larger strategy to fund those investments without disappointing shareholders. A few years ago, it was cloud. Today, it’s generative AI and intelligent automation. Tomorrow? Who knows.
Meanwhile, clients are asking for more for less. That adds even more pressure to keep overheads in check.
Silence Speaks Volumes
Interestingly, neither Wipro nor Tech Mahindra responded to media queries from Livemint about the pay cuts. That silence? It speaks volumes.
In a year when even FMCG leaders only saw modest 5% pay bumps, as reported in the same Livemint series, IT companies are clearly trying to avoid any bad press or employee unrest.
Still, questions hang in the air.
Are lower-paid hires the new normal? Will mid-level attrition start rising? Can these companies retain top talent if their competitors are handing out fatter raises?
Investors might applaud the cost discipline. Employees? Not so much.
