Tier-2 cities catch up: Senior pay touches ₹35-28 lakh, near metro levels

India's Next Pay Hubs Are No Longer Tier-1

Senior talent no longer needs to be anchored to the largest metros to command top-tier compensation. According to the Randstad Annual Salary Trends Report 2025–26, Tier-2 cities are rapidly closing the pay gap with Tier-1 hubs, particularly at senior levels, reshaping how and where high-income professionals build their careers—and wealth.

 

Cities such as Kochi, Thiruvananthapuram, Thane, Surat, Jaipur and Indore are emerging as high-growth talent hubs, with senior-level salaries now comparable to Tier-1 pay. The average cost-to-company (CTC) for senior professionals in Tier-2 locations has climbed to ₹28.38 lakh, with the top Tier-2 markets approaching Tier-1 senior averages of ₹32.40 lakh.

 

 

This shift is being driven by more than just cost arbitrage. 

 

Tier-2 cities are increasingly evolving into domain- and industry-led Global Capability Centre (GCC) hubs, creating demand for leadership roles, niche expertise and advanced technology skills—forcing employers to pay competitively regardless of geography.

 

"Our report indicates that the decentralisation 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 democratisation 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," said Viswanath P S, MD & CEO, Randstad India.

 

Salary Stability at the Top, Acceleration in the Middle

 

Despite a year marked by global economic and geopolitical volatility, salaries in Tier-1 cities have remained resilient. National average compensation levels have stabilised at ₹5.92 lakh for junior roles, ₹16.70 lakh for mid-level professionals, and ₹32.40 lakh for senior roles, signalling a maturing compensation cycle rather than runaway inflation.

 

What stands out, however, is the pace of acceleration in Tier-2 cities—particularly at the senior end—highlighting the decentralisation of economic opportunity.

 

Technology Continues to Set the Pay Ceiling

 

From a wealth perspective, technology remains the single most powerful income multiplier. IT continues to command the highest salaries across levels, with average CTCs of ₹6.65 lakh (junior), ₹20.75 lakh (middle) and ₹35.66 lakh (senior).

 

Demand for skills in AI/ML, cloud computing, cybersecurity, data engineering and DevOps continues to outstrip supply, pushing companies toward skills-based compensation and performance-linked incentives rather than tenure-led pay.

 

The report notesd that roles such as software development, product management and data engineering have emerged as high-impact “hot jobs,” reinforcing technology’s role as an economic equaliser across cities.

 

Non-Tech Sectors Also Gain Ground

 

Importantly, salary momentum is no longer limited to IT alone. Several non-tech sectors are showing meaningful gains:

 

Energy & utilities: up to ₹18.38 lakh (middle) and ₹24 lakh (senior)

 

IT-enabled services (ITES): ₹24.70 lakh at the senior level

 

Infrastructure, real estate & construction: ₹24.11 lakh (senior)

 

Media & entertainment: competitive ₹17.03 lakh at the middle level, driven by digital and OTT growth

 

Where the Money Is for Mid-Career Professionals

 

For mid-level professionals, the highest-paying roles remain firmly tech-led. The top-paying jobs include software developer (₹17.27 lakh), PHP developer (₹16.86 lakh), JavaScript developer (₹16.72 lakh), product manager (₹16.25 lakh), and cloud architect (₹16.03 lakh), among others.  With inputs from PTI