India Today
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indiatoday.in
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India’s young graduates are entering the job market with rising salary expectations, but the reality they face is far more restrained. A recent report by Unstop highlights a widening gap between what students hope to earn and what employers are actually offering. Across streams, the mismatch is clear: 54% of MBA students expect salaries above 12 LPA, yet only 47% manage to secure such packages; among engineering graduates, 60% aim for 9 LPA or more, but just 14% reach that level; and for undergraduate students, while 73% expect salaries above 5 LPA, only 40% achieve it
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The gap is most pronounced for engineering and general undergraduate students, where expectations are shaped more by perception than by market averages.
This disconnect is largely driven by how salary benchmarks are formed on campuses. Students tend to focus on the highest packages announced during placements, often overlooking the median salaries that reflect the broader reality.
Over time, these top offers begin to define expectations for entire batches. At the same time, the traditional advantage of degrees is steadily weakening.
SELECTIVE HIRING RESHAPES SALARIES AND WIDENS THE EXCEPTATION GAP
The report shows that 30% of MBA graduates are earning below 10 LPA, while 39% of engineering graduates are placed under 7 LPA, indicating that employers are no longer assigning a premium to degrees alone
Instead, hiring decisions are increasingly tied to specific, job-ready skills.
Importantly, this gap is not emerging from a slowdown in hiring. Companies are still actively recruiting, with 88% remaining in hiring mode and 90% maintaining or increasing their hiring budgets
However, hiring has become more selective. Higher salaries are now reserved for candidates who demonstrate expertise in areas such as artificial intelligence, data science, and domain-specific skills, while entry-level pay for the broader pool remains relatively stable.
This selective approach is reshaping how salary distribution works at the entry level.
For students, the impact is already visible. Many delay accepting job offers in anticipation of better pay, while others enter roles with a sense of dissatisfaction when expectations are not met.
The report also points to a growing concern among candidates over lack of salary transparency, even though employers do not rank it as a major issue. This mismatch in perception adds another layer of friction to the hiring process.
At a broader level, the findings reflect a structural shift in India’s early talent market. The gap between expectation and reality is not just about salaries, it signals a deeper misalignment between education, student aspirations, and industry demand.
As skills continue to take precedence over degrees and global benchmarks influence local expectations, this divide is likely to persist.
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For now, India’s graduates are aiming higher, but the market is moving at its own pace, creating a gap that defines the current transition in the country’s employment landscape.
Published By:
Rishab Chauhan
Published On:
Apr 28, 2026 17:03 IST
India’s young graduates are entering the job market with rising salary expectations, but the reality they face is far more restrained. A recent report by Unstop highlights a widening gap between what students hope to earn and what employers are actually offering. Across streams, the mismatch is clear: 54% of MBA students expect salaries above 12 LPA, yet only 47% manage to secure such packages; among engineering graduates, 60% aim for 9 LPA or more, but just 14% reach that level; and for undergraduate students, while 73% expect salaries above 5 LPA, only 40% achieve it
advertisement
❮❯
The gap is most pronounced for engineering and general undergraduate students, where expectations are shaped more by perception than by market averages.
This disconnect is largely driven by how salary benchmarks are formed on campuses. Students tend to focus on the highest packages announced during placements, often overlooking the median salaries that reflect the broader reality.
Over time, these top offers begin to define expectations for entire batches. At the same time, the traditional advantage of degrees is steadily weakening.
SELECTIVE HIRING RESHAPES SALARIES AND WIDENS THE EXCEPTATION GAP
The report shows that 30% of MBA graduates are earning below 10 LPA, while 39% of engineering graduates are placed under 7 LPA, indicating that employers are no longer assigning a premium to degrees alone
Instead, hiring decisions are increasingly tied to specific, job-ready skills.
Importantly, this gap is not emerging from a slowdown in hiring. Companies are still actively recruiting, with 88% remaining in hiring mode and 90% maintaining or increasing their hiring budgets
However, hiring has become more selective. Higher salaries are now reserved for candidates who demonstrate expertise in areas such as artificial intelligence, data science, and domain-specific skills, while entry-level pay for the broader pool remains relatively stable.
This selective approach is reshaping how salary distribution works at the entry level.
For students, the impact is already visible. Many delay accepting job offers in anticipation of better pay, while others enter roles with a sense of dissatisfaction when expectations are not met.
The report also points to a growing concern among candidates over lack of salary transparency, even though employers do not rank it as a major issue. This mismatch in perception adds another layer of friction to the hiring process.
At a broader level, the findings reflect a structural shift in India’s early talent market. The gap between expectation and reality is not just about salaries, it signals a deeper misalignment between education, student aspirations, and industry demand.
As skills continue to take precedence over degrees and global benchmarks influence local expectations, this divide is likely to persist.
advertisement
For now, India’s graduates are aiming higher, but the market is moving at its own pace, creating a gap that defines the current transition in the country’s employment landscape.
Published On:
Apr 28, 2026 17:03 IST
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