How Do Salary Increments Work for Freshers and Junior Employees in IT Companies?

Hi,

What is the current structure of salary increments in a software development private limited company?

1) If the employees are freshers from a reputed institute who have completed BSc-IT, BE in IT, or maybe just B.Com and have done a computer course from a reputed institute.

2) If an employee has 6 months, 1 year, or 2 years of experience.

3) Initially, we gave freshers a salary of 5000, which later increased to 8000 after 6 months and then to 15000 after completing a year. Now, I need to know how much their salaries should be once they complete 2 years.

I wanted to know the standard market rate or what percentage of the basic salary should be added up.

Please let me know about my query.

Thanks,
Sapana Kale

Hi Satish,

Where on JobStreet can I find this salary report? Could you please send me a direct link?

Sapana Kale

Hi Sapna,

Here is the link to the salary survey. Additionally, you can refer to the Kelly Services India Salary Guide 2006 as well: http://in.jobstreet.com/career/surveys/default.htm.

Thanks, Satish, for this information.

Regards,
Rajat Joshi

Hi Rajat & Satish,

Thank you for your valuable information. I have gone through the salary survey reports of Jobstreet & Kelly Services. Would like to know one thing: are these the actual salaries (Gross or Net) drawn by those particular designations, or is it an ideal salary package they should get? Please let me know about this.

Thanks once again. If you have any other salary survey reports, do let me know.

Regards,
Sapana Kale

Hi Rajat,

I came across the link that you provided, and it seems that the information is not even close to the existing figures. It shows a senior manager in marketing getting 20k, which I find absurd. Similarly, a Human Resources executive in Delhi with only 2 years of experience is shown to be getting just 10k, which I don't believe is even close to the tentative figure.

Do you have any thoughts on this, or am I mistaken?

Regards,
Deepa

Hi Deepa & Ketan,

My apologies for the delayed response as I was traveling for the last 2 weeks!

Well, these links provide the tentative range and benchmark for how HR professionals would justify the compensation to new joiners to the Management relevant to your industry, which often is invariably higher than the current employees with similar skill sets.

The other approach is to use your network from the industry to determine your position's salary range. Industry contacts can confirm and fine-tune the ranges you've devised.

Try to find contacts in your geographic region since salary can vary widely from place to place.

Current or former employees of the company at which you're interviewing can help determine salary ranges at that particular organization.

In fact, if one collates the data pertaining to relevant profiles with the current compensation from databases like naukri.com & monster.com, it would give some benchmark.

Remember, many times people provide an extra margin or inflate their CTC, which needs to be validated at the time of the interview with supporting documents like the company's increment letter (which can be tampered with 😄) and Form 16 (a very reliable tool) or even bank statements. Here one needs to be guarded with the cash voucher payments and validate them through discrete checks.

But, if you can afford it, you can also hire an expert. Executives, in particular, sometimes do as coaches, compensation consultants, and employment attorneys can research ranges for you. Professional pay advisers can often dig even deeper for specifics on a particular company because their networks tend to be bigger than the average person's.

Best wishes,

Rajat Joshi

Hi Rajat,

Thanks for your valuable feedback and detailed information. I think the other approach is to use your network from the industry to determine your position's salary range. Industry contacts can confirm and fine-tune the ranges you've devised. Try to find contacts in your geographic region, since salary can vary widely from place to place. Current or former employees of the company at which you're interviewing can help determine salary ranges at that particular organization. This is the only prevailing way and depends on the organization an individual is joining. If it is an MNC, then they have a fixed salary structure according to experience. However, if the organization is not a big giant, then it depends on your negotiation power and the existing CTC (as you said), which employees usually fake, except in IT industries. Therefore, I think we cannot rely solely on such survey reports.

Regards,
Deepa

Right, Deepa and Rajat. Also, the remuneration depends on the vacancy; i.e., if the company wants the candidate urgently, it may compromise on the salary front.

I am also conducting the same research. I also want to know how much percentage of an increment we can offer to them. What is the current trend for increment amounts for IT professionals?