Salary drops for 2024 graduates as economic slowdown hits IIT placements

Affected by a hiring slowdown, salaries for engineers graduating this year from the Indian Institutes of Technology (IITs) have experienced a decline. Studies conducted separately by Deloitte and TeamLease indicate that for the class of 2024, annual pay ranges between Rs 15 lakh and Rs 16 lakh, according to a report by The Economic Times.

According to Deloitte’s campus workforce trends study for 2024, compensation has marginally decreased for graduates from the top 10 engineering institutes, eight of which are IITs as ranked by the National Institutional Ranking Framework.

The report quoted Neelesh Gupta, partner at Deloitte India, as saying, “They can expect a median compensation of Rs 16.3 lakh per annum in 2024 as per our study.”

Fall in median salaries

According to a study by TeamLease Services, the median annual salary at older IITs has decreased to around Rs 15 lakh to Rs 16 lakh from Rs 18 lakh to Rs 20 lakh in 2023.

At several IITs, placement activities are ongoing, and this is a slightly extended placement season compared to previous years, the report quoted sources as saying.

“The decline in median salary is particularly pronounced across the seven old IITs,” Ramesh Alluri Reddy, chief executive of TeamLease Degree Apprenticeship, said as quoted in the report.

According to TeamLease findings, median salaries at the new IITs have decreased to around Rs12 lakh to Rs 14 lakh per annum, down from Rs 15 lakh to Rs 16 lakh in 2023.

The report quoted Reddy as saying that several factors have led to the decrease in median salaries, such as the worldwide economic downturn, industry transitions favouring fields like manufacturing and electric vehicles, heightened competition, and a preference for internships over full-time roles.

Falling employment rate

In 2022, among the 17,900 students registered across all IITs, 14,490 successfully found placements, leaving 3,410 without placements, resulting in a reported 19 per cent unemployment rate. This year, despite a rise in registrations to 21,500 students, only 13,410 have secured placements so far, the report said.

“Thus, leaving a staggering 8,090 without placements, marking a significant increase with a 38 per cent unplaced rate,” according to the study. “The consistent rise in unplaced students underscores a deepening skill gap.” The old IITs include those in Mumbai, Delhi, Madras, Kharagpur, Kanpur, Roorkee, and Guwahati.