Archive · 28 Jul 2026
Tier-2 Cities Showcase Strong Salary Growth in India
In India, smaller cities like Ahmedabad, Nagpur, Visakhapatnam, and Jaipur are seeing big salary increases, sometimes even more than big cities like Mumbai and Delhi.
This is happening because more factories and businesses are setting up in these smaller cities.
Big cities like Bengaluru and Hyderabad still pay the most for tech jobs, but smaller cities are catching up in other areas.
This means more people can find good jobs and higher salaries in places that weren't as popular before.
Tier-2 cities like Ahmedabad, Nagpur, Visakhapatnam, and Jaipur are showing significant salary growth, matching or surpassing some metro cities.
Chennai leads metro cities with a 9.7% salary increment, followed by Pune and Hyderabad at 9.6% each.
Ahmedabad is projected to deliver a 9.5% salary increase, placing it ahead of Bengaluru, Mumbai, and Delhi.
Manufacturing and industrial expansion are driving salary growth in Tier-2 cities.
Metro cities still lead in IT-specific salary growth, with Bengaluru projected at 12.7% and Hyderabad at 11.7%.
- Who
- Indian cities, businesses, and employees
- What
- Salary growth trends in Tier-2 cities compared to metro cities
- When
- FY2026-27
- Where
- India, across 20 cities
- Why
- Due to manufacturing expansion, industrial corridor development, and enterprise investments in Tier-2 cities
Metro Cities
Tier-2 Cities
Salary Growth
Metro Cities
Metro cities like Bengaluru, Hyderabad, and Chennai lead in IT-specific salary growth, with Bengaluru projected at 12.7%, Hyderabad at 11.7%, and Chennai at 11.5%.
Tier-2 Cities
Tier-2 cities like Ahmedabad, Visakhapatnam, and Nagpur are catching up, with Ahmedabad at 9.5%, Visakhapatnam at 9.5%, and Nagpur at 9.4%.
Economic Drivers
Metro Cities
Metro cities are driven by technology hiring and global capability centers.
Tier-2 Cities
Tier-2 cities are fueled by manufacturing investments, industrial expansion, and enterprise operations.
- Highest Salary Increment in Metros
- Chennai (9.7%), Pune (9.6%), Hyderabad (9.6%), Bengaluru (9.4%), Mumbai (9.3%), Delhi (9.3%)
- Highest Salary Increment in Tier-2 Cities
- Ahmedabad (9.5%), Visakhapatnam (9.5%), Nagpur (9.4%), Jaipur (9.3%)
- IT-Specific Salary Growth
- Bengaluru (12.7%), Hyderabad (11.7%), Chennai (11.5%), Pune (11.3%)
- Survey Details
- 1,268 businesses across 23 industries and 20 cities
- Key Sectors Analyzed
- Manufacturing, IT, banking, logistics, retail, healthcare, education, financial services