Wage stagnation present in entry-level IT positions: Economic Survey

BENGALURU: Despite corporate profitability surging to a 15-year high in FY24, wage stagnation is pronounced, especially at entry-level IT positions, Economic Survey 2025 has pointed out.

For many quarters now, lower or delayed wage hikes have been reported in IT companies despite firms posting huge growth in profits and revenues.

“Corporate profitability soared to a 15-year peak in FY24, fuelled by robust growth in financials, energy, and automobiles. Among Nifty 500 companies, the profit-to-GDP ratio surged from 2.1% in FY03 to 4.8% in FY24, the highest since FY08,” the survey said.

Large corporations, especially in non-financial sectors, significantly outperformed their smaller peers in profitability. However, while profits surged, wages lagged.

“A striking disparity has emerged in corporate India: profits climbed 22.3% in FY24, but employment grew by a mere 1.5%,” it said.