Is a 7.4 LPA Salary Reasonable for 4 Years of Experience?

When considering a salary of 7.4 Lakhs Per Annum (LPA) for someone with four years of experience, whether it is good or average depends on several critical factors. These include the industry, location, company size, and reputation, as well as the job role and skill set of the individual.

Industry Impact

Different industries have varying salary standards. For example, industries like IT, finance, and consulting often pay higher salaries compared to roles in non-profit or education sectors. An IT professional is likely to find a 7.4 LPA salary reasonable, while the same amount might be seen as lower for non-profit roles.

Location Matters

The cost of living in a particular city or region significantly affects salaries. Major metropolitan areas, such as Mumbai and Bangalore, usually offer higher salaries due to a higher cost of living. In contrast, tier 2 and tier 3 cities might find 7.4 LPA more suitable and reasonable. Researching the average salaries for similar positions in your area is essential to gauge if the offered salary aligns with market standards.

Company Size and Reputation

Larger, well-known companies often offer higher salaries compared to startups or smaller firms. Established companies might provide more competitive compensation packages to attract and retain talent. Smaller or emerging companies might offer comparatively lower salaries but potentially have other benefits such as stock options or a more flexible work environment.

Specialized Skills and Certifications

In-demand skills and certifications can significantly impact salary. If you possess specialized skills or certifications that are highly sought after, you may command a higher salary. For instance, a software developer with technical expertise in a specific language or framework is likely to earn more than someone in a more administrative role.

Job Role and Company Type

The nature of the job and the company type play a crucial role in salary determination. Certain roles naturally come with higher pay. For example, technical roles in software development might offer more than roles in administration. Similarly, working in service-based multinational corporations (MNCs) or IT service companies might yield a more reasonable salary, while working in a product company or a startup might result in a lower salary. By the fourth year, a product company or startup might offer a salary in the range of 12 LPA to 24 LPA.

Additional Considerations

For someone who started with a 3.5 to 4 LPA in 2018-2019, a salary of 7.4 LPA in 2023 would be considered a good salary, especially in service-based companies, IT service companies, and small to medium-sized enterprises (SMEs). However, if you are working in a product company or a wealthy startup, this might be considered below average. In such companies, you would typically expect a salary range of around 12 to 24 LPA by the fourth year.

Moreover, during the post-COVID era, many companies, even for junior-level software developers, are offering hefty packages. It is advisable to research industry standards and negotiate based on your qualifications and contributions. The key is to compare your current salary with the average salaries for similar positions in your area. If you find that the 7.4 LPA salary is lower than industry standards, you may want to look for other opportunities in the market.

Conclusion

A salary of 7.4 LPA for 4 years of experience in the IT sector can be considered reasonable in many cases. However, it is important to conduct thorough research and consider the industry, location, company size, and job role. If you find the offered salary is below market standards, exploring other opportunities may be beneficial.