'15% increase over 13 yrs justified?' Infosys' ex-CFO calls out ‘biggest’ salary disparity in IT sector

Mohandas Pai criticizes the growing disparity between executive and entry-level salaries in India. He points out significant increases in CEO and board compensation while fresher salaries have stagnated over the past decade, calling for more equitable distribution.

15 per cent increase over 13 years justified Infosys ex CFO Mohandas Pai calls out biggest salary disparity in IT sector gcw

Gargi Chaudhry

First Published Dec 23, 2024, 3:15 PM IST | Last Updated Dec 23, 2024, 3:15 PM IST

Mohandas Pai, the former CFO of Infosys, has criticized the widening pay gap in India's business sector, pointing out that senior executives receive large hikes while younger incomes have hardly changed in more than ten years. "Look at an IT CEO's salary five years ago, and look at it now—it has gone up 50-60%. Board compensation has increased by 20%, 30%, even 40%. But for the bottom 20%, wages have only risen by 20-25%," said Pai, who now serves as Chairman of Aarin Capital.

Using his knowledge from Infosys, Pai noted that, in 2024, freshmen who made Rs 3.25 lakh a year in 2011 will only make Rs 3.50-3.75 lakh, a 15% rise over the previous 13 years. "What was the CEO paid in 2011?" he said, adding, "How is it justified? How much does the CEO get paid now? It must be equitable."

Pai has already expressed worries regarding fresher exploitation. He had previously claimed that the IT sector has been "exploiting freshers for the last ten years" by paying them stagnating wages.

According to a Quest research quoted by Pai, the gap is much more pronounced for contract workers, whose pay has climbed by only 1% to 2% over the previous five years. "There is a great degree of exploitation of the bottom 50%, and India Inc has to really pay them better," he said.

Pai stressed that even while technology has decreased the need for labour in some places, businesses are still making a lot of money. He urged companies to prioritise equity, especially in the distribution and services industries, saying, "The percentage of wages to value-added has come down because of automation, and they are not paying more."

For more reliable and latest news