Example Salaries for New Graduates in India: Income Models by University Rank & Job Type
"How much do we actually need to offer to hire successfully?" The biggest challenge Japanese companies face when hiring Indian talent is setting a concrete offer amount. In this article, we present specific salary models (case studies) based on university rankings (Tiers), job categories, and competitive environments.
Contents
Premise: "Winning strategy for Japanese companies" considering yen depreciation and inflation
The first thing to recognize is that you should not calculate based solely on a simple exchange rate conversion (1 rupee ≒ 1.7-1.8 yen). Considering local prices in India and the inflation rate for IT engineers, the minimum line that Japanese companies should offer is higher than the typical starting salary for new graduates in Japan (annual income 3 to 3.5 million yen).
The target should be the upper layer of 'local product companies'
There is no need to compete head-on with GAFAM or local unicorn companies (annual income of around 10 million yen). The target for Japanese companies should be to offer a strategy that adds to the living standards and career value in Japan to the layer that local excellent tech companies and startups offer as '1.2 to 2 million LPA (approximately 2.1 to 3.5 million yen)'.
Case 1: Tier 1 University (Top IITs/NITs) × AI & Backend
This group has the highest difficulty in recruitment. They are skilled in building algorithms and are targeting Google and Amazon's India bases.
Target Profile
Alma mater: Top schools like IIT (Indian Institutes of Technology) and NIT (National Institutes of Technology)
Skills: Python, C++, AI/ML model construction, large-scale traffic processing
Competing offers: US-based Big Tech, prominent local unicorns
Recommended Offer Amount
Annual Salary (gross): 5.5 million yen - 7 million yen
Example breakdown: Monthly salary 350,000 - 450,000 yen + Bonus + Housing allowance
Key to Success This salary range is equivalent to mid-career recruitment (junior to mid-level) in Japanese companies, but their technical skills correspond to more than three years of practical experience in Japan. The concept of
Case 2: Tier 2 University (VIT/SRM, etc.) × Web, Mobile App Development
Possessing practical skills, this is the 'volume zone' with the highest cost-effectiveness for hiring.
Target Profile
Background: Private top universities like VIT, SRM, Pune University
Skills: React, Node.js, AWS, Flutter, Java
Competing Offers: Local large IT consultancies (Infosys/TCS, etc.), mid-sized tech firms
Recommended Offer Amount
Annual Income (Gross): 4 million to 5 million yen
Example Breakdown: Monthly salary 280,000 to 350,000 yen + Bonuses
Key Points for Success Entry-level salaries at local IT service companies (such as TCS and Infosys) aren't actually that high, starting around 400,000 to 600,000 LPA (approx. 700,000 to 1 million yen). However, top talents opt for product companies offering 1 to 1.5 million LPA. If Japanese companies propose an 'annual income of 4.5 million yen', the economic benefit appears very significant. This group also tends to have a strong hunger for growth and high motivation to learn Japanese.
Case 3: Local national university × specific technology (mechanical design, embedded)
Not only IT (Web domains), but also mechatronics and embedded fields are a treasure trove of Indian talent.
Target Image
Origin: State Technical University in rural areas (Top academic achievers)
Skills: C language, Embedded System, CAD, IoT
Competing Offers: Local manufacturing R&D departments
Recommended Offer Amount
Annual Income (Gross): 3.5 million to 4.2 million yen
Success Point Compared to web engineers, salary increases are moderate in this domain. The standard new graduate salary + α (e.g., rent assistance) offered by Japanese manufacturers is sufficiently attractive. Particularly strong appeal lies in the group with aspirations towards "Japanese manufacturing technologies (robotics and automobiles)" where the "opportunity to acquire skills" becomes a more powerful attraction than monetary conditions.
Invisible rewards in offer letter
In order not to lose out in bids just based on money, it's essential to devise a way to quantify 'Quality of Life (QoL)' in the offer letter.
Disposable Income Simulation To dispel concerns about 'high rent in Tokyo,' specify the following.
Company-covered travel and visa expenses (equivalent to about 300,000 to 500,000 yen)
Initial housing support (company covers deposit, key money, and brokerage fees)
Full payment of commuting expenses (self-payment is common in India)
Enhanced social insurance (low medical costs)
By visualizing these as 'Hidden Salary,' you convey value beyond the nominal amount.
Summary
The offer amount for hiring new graduates in India should not be a standardized 'starting salary', but rather be flexibly adjusted based on the target university rank and market value of the occupation.
Tier1 (Top level): From 5.5 million yen (acquired with mid-career hiring budget)
Tier2 (Practical level): From 4 million yen (most cost-effective zone)
Specific technology level: From 3.5 million yen (leveraging Japan's strengths)
The important thing is not to compare them with 'Japanese new graduates', but rather compare it to 'the cost of hiring Japanese engineers with equivalent skills'. This way, you will realize how cost-effective the above amounts are as investments.
Strengths and proposals of Phinx At Phinx, we select the optimal group of universities (Tier) and target segments based on the skill set and budget you desire. For specific requests such as 'I can't offer a salary of 6 million yen right away, but I want talented engineers for 4.5 million yen', we propose feasible hiring strategies based on past hiring performance data. For offer designs that guarantee acceptance without unnecessary costs, please contact Phinx.
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