Infosys Raises Fresher Salaries to INR 21 Lakh, IT Stocks Slide

Infosys has announced a sharp increase in entry-level salaries for fresh graduates, offering packages of up to INR 21 lakh per annum for specialised technology roles. While the move has been welcomed by young professionals, it triggered a decline in Indian IT stocks as investors reacted to concerns over rising costs and margin pressure.

The announcement comes at a time when the IT sector is dealing with uneven global demand and cautious client spending, making the market response particularly sensitive.

What the New Salary Structure Looks Like

The revised compensation applies to select entry-level roles, mainly for candidates with advanced digital and technical skills. According to details available, Infosys will offer packages ranging from INR 7 lakh to INR 21 lakh per year, depending on the role and level.

The highest packages are linked to specialised positions such as Specialist Programmer and Digital Specialist Engineer, aimed at graduates skilled in areas like artificial intelligence, data science, cloud computing and cybersecurity. The hiring is expected to cover both on-campus and off-campus recruitment for the upcoming graduate batch.

The move reflects Infosys’s growing focus on strengthening its talent base in next-generation technologies, which are becoming central to client demand.

IT Stocks Under Pressure After Announcement

The salary hike led to a broad sell-off in IT stocks during Friday’s trading session. The Nifty IT index fell by around 1%, as investors assessed the impact of higher employee costs on profit margins.

Several major IT stocks declined, with Coforge falling close to 4%. Shares of Tech Mahindra, Mphasis, LTIMindtree, TCS and HCL Technologies also slipped between 1% and 1.5%. Infosys shares were trading lower as well, though losses were relatively limited compared to some peers.

Market participants said the reaction highlights ongoing concerns around cost control at a time when revenue growth remains under pressure across the sector.

What Analysts Are Saying

Analysts believe the move highlights intense competition for skilled digital talent in India’s IT industry. While higher starting salaries can help attract and retain high-quality candidates, they may also add pressure on operating margins if demand recovery remains slow.

Some experts note that long-term stock performance will depend more on deal wins, global technology spending and execution, rather than one-time salary revisions. However, rising talent costs are likely to stay on investors’ radar in the near term.

Why This Move Matters

For years, entry-level pay in large IT firms saw limited growth. Infosys’s decision could signal a broader shift in how companies value fresh talent with specialised skills, especially as AI and automation reshape the technology landscape.

The development was confirmed by Infosys Chief Human Resources Officer Shaji Mathew in a statement, while the salary revision was first reported by Moneycontrol.

Infosys Employees Set to Receive 75% Average Bonus this Year

Infosys has rolled out performance-linked bonuses for Q2 FY25, with employees receiving an average payout of 75%.

StartupTalky- Business News, Insights and StoriesNitin Konde