
The salaries for engineers graduating from the Indian Institutes of Technology (IITs) in 2024 have experienced a decline due to a hiring slowdown. Studies conducted by Deloitte and TeamLease reveal the impact on the annual pay and placement rates, highlighting key factors contributing to this trend.
Deloitte’s Campus Workforce Trends Study:
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. Neelesh Gupta, partner at Deloitte India, stated that the median compensation for 2024 is expected to be Rs 16.3 lakh per annum.
Team Lease Services Study:
A study by TeamLease Services indicates that 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. Additionally, median salaries at the new IITs have decreased to around Rs 12 lakh to Rs 14 lakh per annum, down from Rs 15 lakh to Rs 16 lakh in 2023. Ramesh Alluri Reddy, chief executive of TeamLease Degree Apprenticeship, cited several factors contributing to the decrease in median salaries, including the worldwide economic downturn, industry transitions favoring specific fields, heightened competition, and a preference for internships over full-time roles.
Placement Activities and Unemployment Rates:
Placement activities are ongoing at several IITs, with a slightly extended placement season compared to previous years. However, the decline in median salary is particularly pronounced across the seven old IITs. In 2022, 14,490 out of 17,900 students secured placements, resulting in a reported 19 per cent unemployment rate. In 2024, despite a rise in registrations to 21,500 students, only 13,410 have secured placements so far, leaving a staggering 8,090 without placements, marking a significant increase with a 38 per cent unplaced rate. This consistent rise in unplaced students underscores a deepening skill gap.
Conclusion:
The decline in salaries for IIT graduates in 2024, along with the rising unplaced rates, presents a challenging landscape for engineering graduates. The ongoing economic and industry transitions have contributed to these trends, highlighting the need for proactive measures to address the skill gap and support the career prospects of engineering graduates from IITs.