For the first time in eight years, India’s fourth and fifth-largest IT service providers—Wipro Ltd and Tech Mahindra Ltd—have simultaneously reported a decline in median employee pay, despite increasing their headcount in the financial year 2024–25 (FY25).

According to a detailed report published by Livemint on 3 July 2025, the median remuneration at Wipro fell by 0.6%, while Tech Mahindra recorded a steeper decline of 6.52% in annual median pay. The shift marks a notable reversal from the usual upward trend seen in India's IT compensation landscape and is being closely analysed for what it reveals about emerging workforce strategies.

At Wipro, the median salary stood at ₹9.78 lakh (approximately $11,000), as per the company's annual report for FY25. Meanwhile, Tech Mahindra reported a median salary of ₹18.3 lakh for men and ₹15.4 lakh for women employees. Median salary represents the midpoint of the salary distribution, meaning half of the employees earned above this amount and half earned below.

While both companies expanded their workforce during the fiscal year, the drop in median pay underscores the changing structure of talent acquisition. These hiring patterns are likely part of wider efforts to optimise operating margins, especially at a time when the IT sector is under pressure due to macroeconomic challenges, changing client demand, and the cost of investing in technologies like artificial intelligence and automation.

The Livemint report notes that this is the first such simultaneous drop in median pay since FY17. Individually, Tech Mahindra has reported a median salary decline in six of the last ten years, while Wipro has seen such a fall on three occasions over the same period. Notably, Wipro’s median pay figure excludes whole-time directors.

In contrast to Wipro and Tech Mahindra, top-tier Indian IT firms—Tata Consultancy Services (TCS) and Infosys—reported salary increases for FY25. According to their annual reports, TCS raised median employee pay by 6.3%, while Infosys recorded a 9.6% increase. These figures further highlight the divergence in salary strategies across the industry.

One firm yet to disclose its FY25 data is HCL Technologies, the country’s third-largest software services provider. However, Livemint notes that HCLTech remains the only one among India’s top five IT firms that has never reported a decline in median pay.

The timing of these changes coincides with an era where the profitability of traditional IT service providers has come under strain. Companies are exploring multiple ways to sustain margins, including by flattening management structures, reducing non-essential costs, and revisiting compensation frameworks.

This year’s numbers also reflect broader concerns over employee satisfaction and career progression, particularly in firms where the addition of junior-level staff could increase competition and slow down the growth trajectory for mid-level professionals. At the same time, investors may welcome these cost-control measures as part of prudent financial management.

Emails sent by Livemint to Wipro and Tech Mahindra for comments on the matter went unanswered at the time of publication.

While both companies continue to recruit and invest in talent, the decline in median pay raises questions about the long-term impact on employee morale, retention, and upskilling, especially as industry leaders like TCS and Infosys continue to reward employees more generously.