06/25/2026

IT Sector Tops Pay Charts; Tier-2 Cities Catch Up in Salary Growth: Randstad Report

IT Sector Tops Pay Charts; Tier-2 Cities Catch Up in Salary Growth: Randstad Report

India’s job market is witnessing a stable yet transformative phase, with technology roles dominating the salary landscape and smaller cities emerging as strong employment hubs, according to the Randstad Salary Trends Report 2025-26. The report analyses compensation patterns across more than 100,000 jobs in eight Tier-1 and 24 Tier-2 cities across industries and functions.

One of the key findings is the continued dominance of the information technology (IT) sector, which leads salary rankings across all experience levels. Average annual salaries in IT stand at around Rs. 6.65 lakh for junior professionals, Rs. 20.75 lakh for mid-level employees and Rs. 32.66 lakh for senior executives, reflecting strong demand for advanced digital skills such as cloud computing, artificial intelligence, cybersecurity and data analytics.

The report highlights that the top-paying jobs for mid-level professionals are largely technology-driven. Roles such as software developers, cloud architects, Java professionals, Python specialists and big data engineers command average salaries between Rs. 15 lakh and Rs. 17 lakh annually.

Salary levels across India’s major cities remain largely stable. Among Tier-1 cities, Bengaluru leads the junior-level salary rankings with an average package of about Rs. 7.16 lakh per year, reflecting the city’s strong presence of technology companies and global capability centres (GCCs). Mumbai tops the charts for mid-level and senior professionals, offering average salaries of Rs. 18.98 lakh and Rs. 40.04 lakh respectively.

Also read – India’s Job Market Shows Resilience; Salaries Stabilise with High Demand for AI and Tech Skills: Report

The report also notes a narrowing pay gap between Tier-1 and Tier-2 cities. Senior-level salaries in Tier-2 cities have risen significantly, with the average touching Rs. 28.38 lakh annually. Cities such as Thane, Kochi and Surat are emerging as strong employment hubs due to improved infrastructure, technology investments and growing GCC presence.

Among Tier-2 locations, Thiruvananthapuram leads junior-level salaries, while Kochi ranks highest for mid-level professionals and Thane offers the highest senior-level pay, with packages exceeding Rs. 40 lakh. The report attributes this growth to expanding innovation ecosystems and policy initiatives aimed at attracting global enterprises.

Beyond IT, sectors such as energy and utilities, professional services, IT-enabled services (ITES), infrastructure, and media and entertainment also feature among the top-paying industries. Rising investments in renewable energy, infrastructure projects and digital services are driving demand for specialised talent in these sectors.

From a functional perspective, operations-technical and IT-technology roles command the highest salaries across most experience levels. Other high-paying functions include legal and compliance, healthcare, finance and accounts, and sales and business development.

The report also points to a broader shift in compensation strategies. Companies are moving beyond traditional salary hikes toward holistic reward models, combining competitive pay with flexible work options, learning opportunities, wellness initiatives and performance-linked incentives to attract and retain talent.

With India’s digital economy expanding and startups continuing to generate employment, the study suggests that the country’s compensation landscape will increasingly be shaped by specialised skills, technological innovation and the rising importance of emerging job hubs beyond metropolitan centres.

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