Every day, our social media feeds are flooded with the opulent displays of wealth, as the rich flaunt their extravagant lifestyles for all to see. In such times Cognizant’s recent announcement to hire fresh graduates with an annual package of ₹2.52 lakhs has certainly raised some eyebrows.
Freshers with dreams in their eyes, and a degree in hand, the batch of 2024, whether working from home or the office, find themselves questioning whether this is the start of a promising career or an introduction to corporate slavery. In this post lets analyse this by taking example of Noida, as most of the corporates have their offices in delhi NCR, so we can safely assume it represents the broader reality for fresh graduates entering the corporate workforce, let’s break it down one by one.
THE PACKAGE
First thing First, let’s crunch the numbers. ₹2.52 lakhs per annum translates to ₹21,000 per month. Not too shabby, right? Well, let’s see how far this ₹21,000 can stretch when living in Noida, a bustling hub for IT professionals.
RENT
A Roof Over Your Head or a Hole in Your Pocket?
Noida is known for its towering apartments and swanky societies. But these come with a price tag. For a fresh graduate, a decent 1BHK apartment in a livable area of Noida can cost anywhere from ₹𝟏𝟎,𝟎𝟎𝟎 𝐭𝐨 ₹𝟏𝟓,𝟎𝟎𝟎 per month. Let’s take the middle ground and assume ₹𝟏𝟐,𝟎𝟎𝟎 as the monthly rent.
Monthly Salary: ₹₹𝟐𝟏,𝟎𝟎𝟎
Rent: ₹𝟏𝟐,𝟎𝟎𝟎
That leaves you with ₹₹𝟗,𝟎𝟎𝟎 for everything else.
Hope you enjoy dal and chawal, because those avocado toasts are going to be out of the question.
UTILITIES
The Unavoidable
You’ll need electricity, water, mobile recharge, and the all-important internet to stay connected with the world and apply for better-paying jobs. The average monthly cost for utilities can be around ₹2,500. We’re left with ₹6,500 now. Time to prioritize your needs—food, transportation, or saving.
GROCERIES AND EATING OUT
Balancing Budget and Cravings
Cooking at home might save some money, but groceries in Noida aren’t cheap. A modest monthly grocery bill could come to around ₹4,000. Of course, that means no fancy meals. That leaves you with ₹2,500 for transportation, entertainment, and let’s not forget—office-appropriate clothes!
TRANSPORTATION
The Daily Grind
If you’re lucky enough to work close to your residence, your monthly travel might not cost much, say around ₹1,500 for public transport. But if you’re relying on cabs or have a longer commute, this figure could skyrocket. and this leaves us with approximately ₹1,000, but wait we haven’t adjusted some miscellaneous expenses like medical emergencies, social outings, or even a Netflix subscription for those lonely evenings can easily tip the balance. Realistically, this ₹1,000 won’t last long.
IS THIS ENOUGH?
The Real Question
After covering the basics, it’s clear that the remaining ₹1,000 is a tight squeeze for anything beyond mere survival. while a ₹2.52 lakh package may provide initial financial support, it might fall short of covering all expenses comfortably in high-cost areas.
UNDER PAID POSITION OR A CAREER GAP?
the Elephant in the room
The choice between the two is neither the obvious nor an easy one. Once someone enters into workforce there are several factors that influence their decisions such as ongoing financial liabilities, responsibilities, age factors, existing experience are to name a few, so this is extremely personal question to decide. However, before going a few factors must be considered.
- Immediate financial relief: For few of us an underpaid position may provide an immediate financial relief, helping to cover living expenses and avoid prolonged unemployment. For many, the financial pressures of day-to-day life make the prospect of a lower salary more manageable than the uncertainty of a career gap.
- Career Development: An underpaid position might offer some level of professional growth in terms of work experience, that could be valuable for some future roles. However, if the the experiences does not align with long-term career goals, it might not be as valuable as one might think.
- Long Term Career Impact: getting paid less is bound to ripe dissatisfaction in professional journey over a period of time, the implications of career gap in corporate work culture are not something new, however enhancing employable skills during a career gap through further practical training can be beneficial. This approach can help mitigate negative perceptions, turning a potential setback into a valuable opportunity for personal and professional development.
- Personal Circumstances: Circumstances of each individual is different, For some, the stability of a lower-paying job might outweigh the risks of a career gap. For others, the potential long-term benefits of waiting for a more suitable role or investing in additional training might justify the career gap.
WILL HIKE BE ENOUGH SHORTLY
The Ray of Hope
Companies like Cognizant do offer hikes, but the increments are often modest—ranging from 5% to 10% annually for entry-level positions. Let’s assume a generous 10% hike every year:
Year 1 Salary: ₹2.52 lakhs
Year 2 Salary: ₹2.77 lakhs
Year 3 Salary: ₹3.05 lakhs
Even with this optimistic projection, by Year 3, you’re earning around ₹25,000 per month—hardly a significant improvement considering inflation and rising living costs.
So, what does this all boil down to? On paper, ₹2.52 lakhs may seem like a respectable entry-level salary, but when you account for the cost of living in a city like Noida, it barely covers the essentials. Fresh graduates may find themselves trapped in a cycle of just getting by, with little room for growth or savings.
The corporate world may label this as “jobs generation,” but for the bright-eyed 2024 batch, it could very well feel like the onset of corporate slavery. The real question is: Are companies paying enough to retain and motivate the talent that will shape the future? Or are they banking on the fact that there will always be fresh graduates willing to take whatever is offered, just to get a foot in the door?
After all, isn’t that how the cycle of corporate life—and corporate slavery—keeps turning?
The choice between an underpaid job and a career gap involves critical examination immediate financial needs against long-term career aspirations. It requires a thoughtful consideration of personal circumstances, career goals, and the potential impact on future opportunities.
Credit: Adapted from insights by Krati Gautam, Co-Founder of LexGenics and Senior Associate at Chambers of Anurag M. Katarki.
