Tier-2 cities in India are increasingly emerging as major talent hubs, with senior-level salaries seeing a sharp rise, bringing them close to Tier-1 metro pay, according to the Randstad Annual Salary Trends Report 2025–26. Cities such as Kochi, Thiruvananthapuram, Thane, Surat, Jaipur, and Indore are witnessing this surge, driven by demand for leadership, domain expertise, and advanced technology skills.

The report highlights that Tier-2 cities are becoming Global Capability Centre hubs, attracting investments in infrastructure, digital transformation, manufacturing, and dedicated startup ecosystems. These developments are encouraging organizations to offer competitive pay to retain top talent.

Viswanath P S, MD & CEO of Randstad India, noted that the decentralization of growth is one of the most significant shifts in the Indian job market. He emphasized that high-value opportunities are no longer limited to metros, with Tier-2 cities now offering salaries comparable to Tier-1 locations.

Despite economic and geopolitical uncertainties, Tier-1 salaries have remained stable, with averages of Rs 5.92 lakh for junior, Rs 16.70 lakh for middle, and Rs 32.40 lakh for senior-level positions. In comparison, senior-level salaries in Tier-2 cities have risen to an average of Rs 28.38 lakh, with the top two locations matching metro-level compensation.

The IT sector continues to command the highest pay, with average CTCs of Rs 6.65 lakh (junior), Rs 20.75 lakh (middle), and Rs 35.66 lakh (senior). High-demand skills such as AI/ML, cloud computing, cybersecurity, data, and DevOps are driving skills-based and performance-linked compensation.

Other sectors showing strong growth include energy and utilities, IT-enabled services, infrastructure, real estate, and media, while emerging high-paying roles for middle-level professionals include software developers, product managers, cloud architects, and data engineers.