Archive · 17 Jun 2025
India's IT Sector: Soaring CEO-to-Employee Pay Ratios
Imagine the bosses of big computer companies in India make a lot more money than the average worker.
This is because the bosses are paid like they are in other countries, but regular workers' pay hasn't increased as much.
Some experts say this is because bosses need to be paid a lot to get the best people, while others think it's not fair.
This difference is much bigger in India's IT companies than in other countries.
Companies with fairer pay are becoming more attractive to young people looking for jobs.
CEO-to-median employee pay ratios are significantly higher in India's IT sector than global averages.
Experts attribute the disparity to globally benchmarked CEO pay and structurally lower employee wages.
For FY25, ratios were 752x at Infosys and 329.8x at TCS.
Sectors like PSUs have narrower pay gaps due to structured employee pay.
Younger job seekers prioritize transparency and fairness in employer branding.
- Who
- CEOs and median employees in the Indian IT sector; experts.
- What
- CEO-to-median employee pay ratios in India's IT sector are significantly wider than global standards.
- When
- The data referenced FY24 and FY25 pay ratios.
- Where
- India's IT sector.
- Why
- Global benchmarking of CEO salaries combined with structurally lower employee wages contributes to the pay gap.
Concerns about the gap
Arguments for high pay
Pay Equity
Concerns about the gap
Disparity raises questions of fairness, particularly among younger job seekers.
Arguments for high pay
High pay reflects pressures of performance, talent scarcity.
- Infosys FY25 Ratio
- 752x
- TCS FY25 Ratio
- 329.8x
- Wipro FY24 Ratio
- 1,702x
- Tech Mahindra FY24 Ratio
- 1,383x
- HCL Tech FY24 Ratio
- 707x
- S&P 500 Average
- 186x
- US Software & Services Avg
- 84x