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IIT Graduates Feel the Pay Pinch as Top Offers Dwindle

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Amid a hiring slowdown, salaries for engineers graduating this year from the Indian Institutes of Technology (IITs) have declined. For the class of 2024, annual pay ranges between ₹15-16 lakh, according to separate studies by Deloitte and TeamLease.

Compensation for graduates from the top 10 engineering institutes, including eight IITs ranked by the National Institutional Ranking Framework, has seen a slight dip. The Deloitte Campus Workforce Trends 2024 study indicates that these graduates can expect a median compensation of ₹16.3 lakh per annum. “They can expect a median compensation of ₹16.3 lakh per annum in 2024 as per our study,” said Neelesh Gupta, partner at Deloitte India.

The TeamLease Services study, conducted in May, reveals that annual pay at the older IITs has dropped to a median of ₹15-16 lakh, compared to ₹18-20 lakh in 2023.

Placements are still ongoing at some IITs, with the season extending slightly longer than usual. “The decline in median salary is particularly pronounced across the seven old IITs,” said Ramesh Alluri Reddy, CEO of TeamLease Degree Apprenticeship.

The newer IITs have also experienced a fall in median salaries, now at ₹12-14 lakh per annum compared to ₹15-16 lakh in 2023, according to TeamLease findings. For instance, IIT Ropar has seen only a marginal drop in average annual salaries from ₹18 lakh in 2023 to ₹17 lakh, as noted by placement officer Preeti Garg.

Impact of Global Slowdown
“There is a dip in the number of students getting placed this year compared to the previous year,” said Garg.

A student involved in the placement process for the class of 2024 at one of the older IITs confirmed that average pay packets had dropped, attributing this mainly to a decrease in top offers compared to 2023. Top offers at the IITs this year have nearly halved from ₹24 crore for the 2023 batch.

“The factors contributing to the decline in median salaries include the global economic slowdown, industry shifts favoring sectors like manufacturing and electric vehicles (EVs), increased competition, and a preference for offering internships over full-time positions,” said Reddy. Additionally, many companies have shifted to skill-based hiring practices, according to TeamLease. “Despite the wide salary range, with some individuals commanding hefty packages exceeding ₹1 crore or even ₹2 crore, many graduates are witnessing offers below ₹10 lakh, with some as low as ₹6 lakh per annum,” Reddy added.

In 2022, out of 17,900 registered students across all IITs, 14,490 secured placements, leaving 3,410 unplaced, translating to a 19% unplaced rate, according to the report. This year, amid a surge in registered students to 21,500, only 13,410 have been placed. “Thus leaving a staggering 8,090 without placements, marking a significant increase with a 38% unplaced rate,” according to the study. “The consistent rise in unplaced students underscores a deepening skill gap.”

The old IITs referred to in the study are Bombay, Delhi, Madras, Kharagpur, Kanpur, Roorkee, and Guwahati.