Hit by the hiring slowdown, salaries of engineers graduating this year from the Indian Institutes of Technology (IITs) have dropped. For the class of 2024, the annual pay is in the range of ₹15-16 lakh, according to separate studies by Deloitte and TeamLease.

Compensation for graduates from top 10 engineering institutes, of which eight are IITs, as ranked by the National Institutional Ranking Framework has declined marginally for the class of 2024, according to Deloitte campus workforce trends 2024 study. “They can expect a median compensation of ₹16.3 lakh per annum in 2024 as per our study,” said Neelesh Gupta, partner, Deloitte India.

Annual pay is down to a median ₹15-16 lakh compared with ₹18-20 lakh in 2023 at old IITs, as per a TeamLease Services study conducted in May shared with ET.

Placements are still on at some of the IITs with the season slightly longer than before, said people involved in the process at IITs. “The decline in median salary is particularly pronounced across the seven old IITs,” said Ramesh Alluri Reddy, CEO, TeamLease Degree Apprenticeship.

The new IITs have also seen a fall in median salaries to ₹12-14 lakh per annum from ₹15-16 lakh in 2023, TeamLease findings suggested.

IIT Ropar has seen only a marginal drop in average annual salaries from ₹18 lakh in 2023 to ₹17 lakh, placement officer Preeti Garg said.

Impact of Global Slowdown
“There is a dip in the number of students getting placed this year as well compared to the previous year,” said Garg.One student was part of the placement cell for class of 2024 at one of the old IITs confirmed that average pay packets at the institute had dropped. “This is mainly due to top offers coming down in 2024 compared to 2023 top offers,” he said.

Top offers at the IITs this year have nearly halved from ₹4 crore for the 2023 batch, ET had reported earlier. “The factors contributing to the decline in median salaries include the global economic slowdown, industry shifts favouring sectors like manufacturing and electric vehicles (EVs), increased competition, and the preference for offering internships over full-time positions,” said Reddy.

Another reason is that many companies have moved to skill-based hiring practices, according to TeamLease. “Despite the wide salary range, with some individuals commanding hefty packages exceeding ₹1 crore or even ₹2 crore, many graduates are witnessing offers below ₹10 lakh, with some as low as ₹6 lakh per annum,” Reddy said.

In 2022, out of 17,900 registered students across all IITs, 14,490 secured placements, leaving 3,410 unplaced, translating to a 19% unplaced rate, according to the report. This year, amid a surge in registered students to 21,500, only 13,410 have been placed. “Thus leaving a staggering 8,090 without placements, marking a significant increase with a 38% unplaced rate,” according to the study. “The consistent rise in unplaced students underscores a deepening skill gap.”

The old IITs are the ones at Bombay, Delhi, Madras, Kharagpur, Kanpur, Roorkee and Guwahati.

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