There has been a 15 percent increase in the number of Rs 1 crore-plus salary packages offered at IITs. This was driven by a 20 percent increase in the number of international offers at these engineering campuses, initial estimates indicate.
The trend of Rs 1 crore-plus salary packages being offered during placements at the Indian Institutes of Technology (IITs) is back this year despite the disruption caused by the Coronavirus (Covid-19) outbreak.
Placement cell sources at the IITs told Moneycontrol that there has been a 15 percent increase in the number of Rs 1 crore-plus salary packages offered at the campuses. This was driven by a 20 percent increase in the number of international offers at these engineering campuses, as per initial estimates.
Employment market barometer
Campus placements at IITs give an indication of the employment market in the country in that particular year. Despite the pandemic, placement sentiment has been positive at campuses this year.
There was an expectation that final placements of the graduating batch would be muted since companies are said to be taking a cautious stand on hiring. But the initial trends have shown companies are upbeat in their job offers. Compared to last year, more international firms are said to be offering Rs 1 crore pay packages.
“We are seeing South-East Asia-based firms offer packages above Rs 1 crore. This came as a pleasant surprise because given Covid-19, we presumed that international pay packages would range between Rs 60 lakh-80 lakh,” said the professor heading placements at an IIT.
Which foreign companies are making offers?
Global proprietary trading firm and market maker Optiver offered a package of Euro 1.57 lakh (Rs 1.38 crore approximately) per annum on the first slot on the first day (December 1) of placement at IIT Bombay.
Sony Japan offered a package of JPY 1.63 Crore per annum (Rs 1.15 crore approximately) at IIT Bombay.
Similarly, Honda (R&D) Japan offered JPY 82 lakh per annum (Rs 57.8 lakh approximately) and NEC Japan offered JPY 49.24 lakh per annum (Rs 34.7 lakh approximately). Taiwan’s manufacturing major TSMC offered TWD 20.70 lakh per annum (Rs 53.5 lakh approximately) at IIT Bombay.
“There is a high demand for IIT graduates in R&D roles at technology and consumer-facing companies. Technology-led skills, including AI and big data analysis are helping students draw high packages,” said the head of the student placement cell at an older IIT.
The other IITs did not officially share compensation details for international offers. However, sources told Moneycontrol that the older IITs, including IIT Madras, IIT Delhi, IIT Bombay and IIT Kharagpur had a larger share of international offers. The Rs 1 crore-plus salary package trend was also higher in the older IITs.
India salaries at Rs 50 lakh plus
IIT students also saw a rise in pay packages for jobs in India. The average pay for these offers is said to be Rs 35 lakh as against Rs 28 lakh last year, according to placement officials.
At IIT Roorkee, the highest compensation for a job in India (CTC) stood at Rs 80 lakh as compared to Rs 60 lakh in the year-ago period. There were 153 PPOs compared to 139 last year. Pre-placement offers or PPOs are given by companies to students who have interned with them in the recent past based on their performance during the internship. Such students are not required to sit for further interviews.
At IIT Guwahati, as of December 4, total job offers stood at 526, including pre-placement offers. The highest India salary package stood at Rs 70 lakh per annum.
Placements have gone virtual across these engineering campuses due to the coronavirus outbreak. Interviews are being held online for all candidates. Moneycontrol had reported that despite Covid-19 fears, final placements would see a positive trend.