Bengaluru, India, Jan 27: India’s compensation landscape is entering a new phase of maturity, marked by salary stability, strong demand for niche skills, and the rapid rise of Tier-2 cities as credible, high-paying talent hubs, reveals the Randstad Annual Salary Trends Report 2025–26.
Despite a year marked by economic and geopolitical volatility, Tier-1 salaries have shown notable resilience, stabilising at a national average of INR 5.92 lakhs (junior), INR 16.70 lakhs (middle), and INR 32.40 lakhs (senior). This trend signals a strategic recalibration by organizations, moving away from uniform salary hikes towards targeted, data-driven rewards frameworks that balance compensation with productivity, skills development, flexibility, and workforce well-being.
One of the most striking findings from this year’s report is the significant surge in senior-level salaries in Tier-2 cities, where the average CTC has risen to INR 28.38 lakhs, with the top two Tier-2 locations now offering compensation comparable to Tier-1 cities. Tier-2 cities are fast emerging as domain and industry-led Global Capability Center (GCC) hubs, driving demand for leadership, niche domain expertise, and advanced technology skills, and compelling organizations to pay competitively.
The insights also point to the growing prominence of Kochi, Thiruvananthapuram, Thane, Surat, Jaipur, Vadodara, Bhopal, and Indore as future-ready Tier-2 locations, supported by infrastructure investments, progressive state policies, accelerated digital transformation, advanced manufacturing growth, and dedicated GCC and startup setups.
From an industry perspective, IT commands the highest salaries across all levels, with average CTCs of INR 6.65 lakhs (junior), INR 20.75 lakhs (middle), and INR 35.66 lakhs (senior). Demand for skills in AI/ML, cloud computing, cybersecurity, data, and DevOps continues to outpace talent supply, pushing organisations towards skills-based pay and performance-linked incentives.
Other industries showing strong salary momentum include:
● Energy & utilities: up to INR 18.38 lakhs (middle) and INR 24 lakhs (senior)
● IT-enabled services (ITES): INR 24.70 lakhs at the senior level
● Infrastructure, real estate & construction: INR 24.11 lakhs at the senior level
● Media & entertainment: competitive middle-level salaries at INR 17.03 lakhs, driven by digital and OTT growth
Hot Jobs 2025-26 with indicative average salaries:
The top 10 high-paying jobs for middle-level professionals in India include:
Software developer (INR 17.27 lakhs), PHP developer (INR 16.86 lakhs), JavaScript developer (INR 16.72 lakhs), Product manager (INR 16.25 lakhs), Java professional (INR 16.06 lakhs), Cloud architect/Cloud computing (INR 16.03 lakhs), .Net developer (INR 15.81 lakhs), C++ Developer (INR 15.70 lakhs), Python Specialist (INR 15.30 Lakhs), Big Data engineer (INR 15.17 lakhs)
Commenting on the findings, Viswanath PS, MD & CEO, Randstad India, a talent company, said: “As we step into 2026, the Indian job market is witnessing a profound shift where value is no longer defined by traditional roles, but by a ‘digital premium’ on specialized, future-ready skills. The emergence of high-impact ‘hot jobs’—centered around software development, product management, and data engineering—reinforces that technology is the ultimate equalizer in our economy.
Our report indicates that the decentralization of growth is arguably the most significant aspect of India’s employment landscape; we are seeing a remarkable surge in senior-level compensation across Tier-2 cities, with many regional hubs now standing shoulder-to-shoulder with Tier-1 metros. This democratization of high-value opportunity, coupled with a steady salary performance across diverse sectors like Energy & Utilities, BFSI, Telecom, Media & Entertainment, highlights a resilient and multi-industry economic engine.
From an employer’s perspective, today, organizations are prioritizing a balanced blend of work flexibility, holistic well-being, and personalized benefits to attract and retain high-caliber talent. In this digital-first era, the focus for India Inc. is on building a future-ready workforce where the value proposition is deeply rooted in purpose and continuous skilling. All in all, the focus has evolved from simple pay raises to a holistic ‘total rewards’ philosophy that balances competitive compensation with intangible incentives, ensuring that India remains a global powerhouse for innovation and sustainable talent building.”
The Emergence of Tier-2 Cities as Major Talent Hubs:
● Chennai rises in rankings at the middle (INR 17.89 lakhs) and senior (INR 34.72 lakhs) levels, and stands steady in the Top 5 at the middle level.
● Hyderabad rises to the third rank in average CTC (INR 33.56 lakhs) in the senior level, while maintaining its second spot in the junior level (INR 6.23 lakhs).
● Kochi’s rise as an emerging innovation hub has catapulted it to the top of the table in the middle level (INR 16.81 lakhs), the second rank in senior level (INR 34.72 lakhs), and third in the junior level (INR 5.52 lakhs).
● Thiruvananthapuram surges to the first position in junior level average salaries (INR 5.85
lakhs), and a close second in the middle level (INR 16.26 lakhs).
● Surat maintains its leadership among the Top 3 in senior level salaries (average CTC of
INR 32.16 lakhs).
● Jaipur rises impressively to the Top 10 in average salaries in the middle (INR 12.70
lakhs) and senior (INR 29.60 lakhs) levels.
Additional insights from the 2025–26 salary landscape:
• The growing concentration of Global Capability Centers outside metros is reshaping compensation benchmarks, particularly for senior and niche roles in technology, operations, and digital transformation, as Tier-2 cities are projected to contribute nearly 60% of new job creation by 2026, largely driven by GCC-led growth.
• Demand for future-ready skills is accelerating faster than overall wage growth, indicating a shift towards skills-based differentiation rather than uniform increments, with premium pay emerging for roles linked to AI, cloud, cybersecurity, automation, data, and advanced engineering.
• Organizations are increasingly prioritising retention-led compensation strategies, using targeted pay premiums, long-term incentives, and capability-based rewards for critical roles, contributing to a decline in overall attrition levels (from 18.3% in 2023 to 17.5% in 2024).
