Campus pay for MBAs, BTechs rises in 2025 as hiring rebounds after muted 2024

By: Shantanu Bhattacharji

Variable pay—often called ‘pay at risk’—is now standard practice, with 97% of employers including performance-linked bonuses or short-term incentives in their compensation packages.

After a sluggish 2024, campus hiring in India is gaining momentum. According to Deloitte’s latest Campus Workforce Trends report, the Class of 2025 is seeing stronger salary offers—especially at the country’s top engineering and business schools—pointing to a recovery in corporate hiring.

Median pay for MBA graduates is projected to rise 8.3 per cent this year, while BTech graduates are expected to see a 4.3 per cent increase. That marks a clear reversal from 2024, when MBA salaries fell by 9 per cent and BTech pay edged down slightly.

At elite institutions, the gains are even sharper. The median package at the top 10 MBA colleges is set to reach Rs 26 lakh, up from Rs 24 lakh last year. For top engineering colleges, the figure is Rs 17 lakh, compared to Rs 16.3 lakh in 2024.

So, what’s driving the bounce? First, companies are catching up after a year of hiring freezes. The slowdown in 2024 wasn’t just about caution—it was about cost-cutting. With economic signals turning more positive in 2025, employers are now hiring to fill those gaps. Secondly, attrition in 2023–24 left many firms short-staffed. Replacing those exits—especially in consulting, finance, and tech—is adding momentum to this year’s hiring cycle. And finally, companies are focusing on students with high-demand skills: data science, AI, product management, cybersecurity.

But here’s the catch: this optimism doesn’t extend to everyone. The Deloitte study covers over 500 colleges, but the salary gains are concentrated in the top 10 per cent—mostly elite institutions with strong alumni networks, global exposure, and proven placement records. For students in tier-2 or lesser-known colleges, job prospects remain uneven, and salary packages have barely budged.

The gap between the best and the rest is growing. There’s another shift underway that’s worth watching. Recruiters are moving away from bulk hiring to what some are calling “just-in-time hiring.” The message is clear: the hiring market is becoming smarter, faster, and more selective. India’s demographic dividend—millions of young graduates entering the workforce each year—is still a major economic strength. But to fully unlock that potential, education institutions must align better with real-world skills, and students must look beyond textbooks to gain practical experience.

Interestingly, it’s not just salaries that are evolving—it’s how they’re structured. Variable pay, or ‘pay at risk,’ has become the new norm. Nearly every employer surveyed (97 per cent) now includes short-term bonuses or performance-linked incentives as part of their offers. The manufacturing and consumer goods sectors led in terms of compensation growth, while life sciences and pharmaceuticals lagged behind. Another positive sign: pre-placement offers—typically extended after internships or project work—rose 24 per cent compared to last year, across degree types. That suggests companies are increasingly using real-world performance as a filter for full-time hiring.

Notably, the rebound in salaries isn’t just showing up in national reports—campus data is backing it up. Placement officials say the uptick is driven by surging demand in fast-growing sectors like private equity, renewable energy, and healthcare. At leading institutions, there’s also a notable shift in how offers are structured: more compensation is now tied to performance-based bonuses, especially in finance and consulting roles. It’s a sign that companies are hiring with sharper expectations and linking pay more closely to results.

This year’s Deloitte Campus Workforce Trends report—its fifth edition—adds fresh insight into how India’s graduate job market is shifting. Based on a survey of 238 companies across industries, the report finds that engineering degrees are seeing the fastest year-on-year salary growth at 4.65 per cent, outpacing even management degrees, which posted a 2.19 per cent increase. Among undergraduates, BTech students continue to land the highest offers, followed by those pursuing law and business administration. For the fifth consecutive year, tech remains the most sought-after industry for fresh graduates.