IT Sector Tops Pay Charts; Tier-2 Cities Catch Up in Salary Growth: Randstad Report
The Randstad Salary Trends Report 2025–26 paints a picture of a resilient and evolving Indian job market. The IT sector continues to dominate pay charts, but Tier-2 cities are rapidly catching up, reshaping the geography of employment.
India’s job market is entering a stable yet transformative phase, according to the Randstad Salary Trends Report 2025–26. The survey, which analysed compensation patterns across more than 100,000 jobs in eight Tier-1 and 24 Tier-2 cities, reveals two defining trends: the continued dominance of the IT sector in salary rankings and the rapid rise of Tier-2 cities as competitive employment hubs.
IT Sector: The Undisputed Leader
Salary Benchmarks
- Junior professionals: Average annual salary of ₹6.65 lakh.
- Mid-level employees: Average annual salary of ₹20.75 lakh.
- Senior executives: Average annual salary of ₹32.66 lakh.
These figures underscore the IT sector’s dominance across all experience levels, driven by demand for advanced digital skills such as cloud computing, artificial intelligence, cybersecurity, and data analytics.
Mid-Level Technology Roles
The top-paying jobs for mid-level professionals are largely technology-driven:
- Software developers
- Cloud architects
- Java professionals
- Python specialists
- Big data engineers
Average salaries for these roles range between ₹15–17 lakh annually, reflecting the premium placed on specialised digital expertise.
Regional Salary Dynamics
Tier-1 Cities
- Bengaluru: Leads junior-level salary rankings with an average package of ₹7.16 lakh, reflecting its strong base of technology companies and Global Capability Centres (GCCs).
- Mumbai: Tops mid-level and senior-level salaries, offering ₹18.98 lakh and ₹40.04 lakh respectively.
Tier-2 Cities: Closing the Gap
The report highlights a narrowing pay gap between Tier-1 and Tier-2 cities.
- Senior-level salaries in Tier-2 cities have risen significantly, averaging ₹28.38 lakh annually.
- Thiruvananthapuram: Leads junior-level salaries.
- Kochi: Ranks highest for mid-level professionals.
- Thane: Offers the highest senior-level pay, exceeding ₹40 lakh.
This surge is attributed to improved infrastructure, technology investments, and the growing presence of GCCs in Tier-2 cities, which are increasingly becoming attractive employment destinations.
Sectoral Insights Beyond IT
- Energy and Utilities : Rising investments in renewable energy and infrastructure projects are driving demand for specialised talent in engineering, project management, and sustainability roles.
- Professional Services & ITES : Consulting, outsourcing, and IT-enabled services continue to offer competitive salaries, particularly in client-facing and analytics-driven roles.
- Infrastructure : Large-scale infrastructure projects are creating opportunities for engineers, project managers, and compliance professionals.
- Media and Entertainment : Digital transformation in content creation and distribution is boosting demand for professionals in production, marketing, and digital strategy.
Functional Salary Trends
From a functional perspective, the highest-paying roles are concentrated in:
- Operations-technical and IT-technology functions.
- Legal and compliance roles, reflecting regulatory complexity.
- Healthcare positions, driven by innovation and private investment.
- Finance and accounts, particularly strategic CFO roles.
- Sales and business development, where performance-linked incentives are significant.
Shifts in Compensation Strategy
The report notes a broader transformation in how companies approach rewards:
- Moving beyond traditional salary hikes toward holistic reward models.
- Combining competitive pay with:
- Flexible work options
- Learning and upskilling opportunities
- Wellness initiatives
- Performance-linked incentives
This reflects a global HR trend where employee experience and engagement are as critical as compensation in attracting and retaining talent.
Strategic Implications for HR Leaders
- Talent Distribution : The rise of Tier-2 cities requires HR leaders to rethink talent strategies. Expanding recruitment beyond metros can reduce costs while tapping into new pools of skilled professionals.
- Skill Premiums : Specialised digital skills will continue to command significant salary premiums. HR leaders must prioritise upskilling and reskilling programs to meet demand in AI, cloud, and cybersecurity.
- Employer Branding : With salary levels stabilising, employer value propositions—including career growth, flexibility, and wellness—will become decisive in talent acquisition.
- Workforce Planning : Strategic workforce planning must account for the dual rise of IT dominance and Tier-2 city competitiveness, ensuring balanced talent pipelines.
- Global Confidence : India’s evolving compensation landscape signals increasing global confidence in its talent ecosystem, positioning the country as a critical hub for innovation and digital transformation.
Global Context
India’s trends mirror global shifts but with unique local dynamics:
- United States: Tech salaries remain high, but layoffs have created volatility. India’s IT sector shows steadier growth.
- Europe: Energy transition is driving demand for renewable skills, similar to India’s infrastructure and energy boom.
- Asia-Pacific: Countries like Singapore and South Korea are competing for AI talent, but India’s scale and Tier-2 expansion provide a distinct advantage.
Survey Highlights
- IT sector leads salary rankings across all levels.
- Mid-level technology roles command ₹15–17 lakh annually.
- Bengaluru tops junior-level salaries; Mumbai leads mid and senior levels.
- Tier-2 cities like Thane, Kochi, and Thiruvananthapuram are emerging as strong hubs.
- Senior-level salaries in Tier-2 cities average ₹28.38 lakh, with Thane exceeding ₹40 lakh.
- Beyond IT, energy, infrastructure, ITES, and media sectors show strong pay growth.
- Companies are shifting toward holistic reward models, integrating flexibility, wellness, and learning.
Conclusion
The Randstad Salary Trends Report 2025–26 paints a picture of a resilient and evolving Indian job market. The IT sector continues to dominate pay charts, but Tier-2 cities are rapidly catching up, reshaping the geography of employment.
For HR leaders, the message is clear: India’s compensation landscape is no longer defined solely by metropolitan centres or traditional salary hikes. It is being shaped by specialised skills, holistic reward strategies, and the rise of new employment hubs.
This transformation signals a future where India’s talent ecosystem is not only globally competitive but also geographically diverse, offering opportunities across industries and regions. For further insights into the evolving workplace paradigm, visit
- IT Sector Tops Pay Charts; Tier-2 Cities Catch Up in Salary Growth: Randstad Report - March 16, 2026
- India’s Job Market Shows Resilience in 2026 with Stable Salaries and High AI Skills Demand : Report - March 16, 2026
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