Tier-2 cities’ senior salaries climb to ₹28.38 lakh, narrowing gap with metros: Randstad
Senior-level salaries in Tier-2 cities have risen to an average of ₹28.38 lakh, with top locations offering compensation comparable to Tier-1 metros, even as national salaries remain stable and skills-based pay gains prominence.
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India’s compensation landscape is entering a phase of stabilisation, marked by steady salary levels in Tier-1 cities and a sharp rise in senior-level pay across Tier-2 locations, according to the Randstad Annual Salary Trends Report 2025–26.
The report shows that despite economic and geopolitical volatility, national average salaries in Tier-1 cities have remained resilient at ₹5.92 lakh for junior roles, ₹16.70 lakh for middle-level professionals, and ₹32.40 lakh at the senior level. This stability reflects a broader shift by companies away from uniform annual increments towards skills-based and performance-linked compensation models.
Tier-2 cities see sharp rise in senior pay
One of the most notable findings is the convergence of senior-level salaries in Tier-2 cities with those in major metros. The average senior-level CTC in Tier-2 cities has risen to ₹28.38 lakh, with the top two Tier-2 locations now offering compensation comparable to Tier-1 cities, the report noted.
Cities such as Kochi, Thiruvananthapuram, Thane, Surat, Jaipur, Vadodara, Bhopal and Indore have emerged as high-growth Tier-2 talent hubs, driven by infrastructure investments, state-level policy support, digital transformation, and the expansion of Global Capability Centers (GCCs).
Randstad projects that Tier-2 cities will contribute nearly 60% of new job creation by 2026, largely led by GCC-led hiring in technology, operations and advanced digital roles.
Also read: AI could add $550 billion to India’s economy by 2035: PwC report
City-wise salary trends
Among Tier-1 cities, Bengaluru continues to lead junior-level salaries with an average CTC of ₹7.16 lakh and remains competitive at the middle level with ₹18.90 lakh. Mumbai tops the chart at the middle level with ₹18.98 lakh and leads senior-level pay at ₹40.04 lakh. Chennai recorded average salaries of ₹17.89 lakh at the middle level and ₹34.72 lakh at the senior level, while Hyderabad ranked third at the senior level with an average CTC of ₹33.56 lakh and second at the junior level with ₹6.23 lakh.
In Tier-2 cities, Kochi stood out with average salaries of ₹5.52 lakh (junior), ₹16.81 lakh (middle), and ₹34.72 lakh (senior). Thiruvananthapuram led junior-level salaries among Tier-2 cities at ₹5.85 lakh and reported ₹16.26 lakh at the middle level. Surat remained among the top-paying Tier-2 cities at the senior level with an average CTC of ₹32.16 lakh, while Jaipur reported ₹12.70 lakh at the middle level and ₹29.60 lakh at the senior level.
IT leads industry-wise compensation
From an industry perspective, IT continues to offer the highest salaries across experience levels, with average CTCs of ₹6.65 lakh (junior), ₹20.75 lakh (middle), and ₹35.66 lakh (senior). Other sectors showing strong compensation momentum include Energy & Utilities, which offers up to ₹18.38 lakh at the middle level and ₹24 lakh at the senior level, and IT-enabled services (ITES), where senior-level salaries average ₹24.70 lakh.
Infrastructure, real estate and construction reported senior-level salaries of ₹24.11 lakh, while media and entertainment recorded competitive middle-level pay at ₹17.03 lakh, driven by growth in digital and OTT platforms.
High-paying roles and skills premium
The report identified software development and technology-led roles as the highest-paying positions at the middle level. Software developers earned an average of ₹17.27 lakh, followed by PHP developers (₹16.86 lakh), JavaScript developers (₹16.72 lakh), product managers (₹16.25 lakh), and cloud architects at ₹16.03 lakh. Python specialists and big data engineers earned average salaries of ₹15.30 lakh and ₹15.17 lakh, respectively.
Demand for skills in AI, machine learning, cloud computing, cybersecurity, automation, data and advanced engineering continues to outpace supply, resulting in premium pay for niche and future-ready capabilities, the report said.
Attrition declines as firms focus on retention
The report also highlighted a moderation in attrition levels, which declined from 18.3% in 2023 to 17.5% in 2024. Randstad attributed this trend to retention-led compensation strategies, including targeted pay premiums, long-term incentives and capability-based rewards for critical roles.
Commenting on the findings, Viswanath PS, MD & CEO, Randstad India, said the Indian job market is witnessing a shift where compensation is increasingly driven by digital skills and specialised capabilities, alongside a broader move towards a “total rewards” approach that balances pay with flexibility, well-being and long-term career value.
