A new study by Randstad found that 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
The study titled Randstad Annual Salary Trends Report 2025–26 further found that 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 organisations, 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 Centre (GCC) hubs, driving demand for leadership, niche domain expertise, and advanced technology skills, and compelling organisations 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
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 specialised, future-ready skills. The emergence of high-impact ‘hot jobs’, centred around software development, product management, and data engineering, reinforces that technology is the ultimate equaliser in our economy
