AI salaries rise 23% in two years as legacy tech roles see pay cuts
India’s technology salary market is showing a widening gap between specialised, high-demand skills and more established roles, with artificial intelligence (AI) emerging as the strongest area of salary growth.
According to the latest foundit Insights Tracker, AI salaries increased 12% year-on-year in 2026, following 10% growth in 2025. Over the two-year period, AI salaries have risen 23% on a compounded basis, the highest growth among the IT and IT-enabled services categories tracked.
The trend is markedly different for several legacy technology segments. Salaries in computer hardware and e-commerce have declined for two consecutive years, while IT services have seen only limited movement. The data points to a compensation market increasingly shaped by specialised capabilities rather than experience or tenure alone.
AI salary premium starts at entry level
AI professionals are commanding a significant salary premium from the beginning of their careers. Professionals with 0–3 years of experience in AI earn between ₹8.87 lakh and ₹15.41 lakh per annum. At the senior end, professionals with more than 15 years of experience earn between ₹70.99 lakh and ₹89.24 lakh annually.
Cybersecurity has recorded an even higher salary ceiling at the senior level. Professionals in Computer & Network Security with more than 15 years of experience can earn up to ₹97.81 lakh, the highest senior salary ceiling among the categories tracked.
The difference is particularly pronounced when compared with mainstream IT roles. Entry-level professionals in Information Technology and IT Services earn between ₹2.68 lakh and ₹5.08 lakh annually, while the 15-plus years bracket reaches ₹57.55 lakh–₹72.13 lakh. Both categories recorded a 1% decline in salaries over the last year.
“Companies are getting selective about what they pay a premium for. Experience on its own no longer commands the strongest raises — what matters is whether a skill fills a capability gap the business needs; whether that is building AI systems, securing infrastructure, automating factories or delivering specialised healthcare,” said Tarun Sinha, CEO, foundit. He added that salary growth will increasingly follow professionals who continue to deepen and renew their skills as business requirements change.
AI and cybersecurity lead technology salary growth
The divergence is visible across India’s wider IT and ITeS salary market. Computer & Network Security recorded 9% salary growth in 2026, taking its two-year compounded increase to 19%. Data Mining followed with 7% annual growth and 14% growth over two years, while Analytics recorded 5% growth in 2026 and 13% over the two-year period.
Computer Software and Enterprise Software saw more modest gains. Computer Software salaries increased 1% in 2026, after rising 7% the previous year, resulting in 8% growth over two years. Enterprise Software recorded 2% growth in 2026 following 6% growth in 2025, also translating into 8% two-year growth.
Several segments moved in the opposite direction. Information Technology salaries declined 1% in 2026 after growing 5% in the previous year, leaving four-year? No—two-year growth at 4%. Information Technology and Services also declined 1% in 2026 following 3% growth in 2025, resulting in 2% growth over two years.
The sharper declines came in Internet, computer hardware and e-commerce. Internet salaries fell 2% in each of the past two years, resulting in a 4% two-year decline. Computer hardware declined 3% in 2025 and another 4% in 2026, taking its two-year decline to 7%. E-commerce salaries fell 4% in 2025 and 3% in 2026, also resulting in a 7% decline over two years.
Salary growth extends beyond technology
The premium for specialised skills is also visible outside the technology sector. Semiconductor salaries have increased 17% over two years, rising 7% in the first year and 9% in the second. Industrial Automation has recorded 13% growth over the same period, with annual salary growth accelerating from 5% to 8%.
Senior professionals in Industrial Automation can earn up to ₹58.90 lakh, while senior semiconductor professionals have a salary ceiling of ₹48.49 lakh. Automotive salaries also recorded 6% growth in the latest year.
Specialised healthcare roles have similarly registered salary gains. Medical Practice recorded the strongest increase at 8%, with senior compensation reaching ₹56.70 lakh. Medical Devices salaries grew 6%, while Pharmaceuticals recorded 4% growth. Real Estate and Digital Marketing each recorded 7% growth, while Oil & Energy salaries increased 6%.
Within financial services, Venture Capital & Private Equity recorded the highest salary growth at 5%, followed by Investment Banking at 3% and Banking at 2%.
Bengaluru remains the top AI salary market
Geography continues to play a significant role in AI compensation. Bengaluru remains India’s highest-paying AI market, reflecting its concentration of product companies, AI-focused startups and global capability centres. Senior AI professionals in the city earn between ₹61.70 lakh and ₹91.25 lakh.
Bengaluru’s senior AI compensation is around 10–15% higher than NCR and Mumbai, while the gap can reach up to 40% compared with Chennai at the senior end. Hyderabad is emerging as another major market, supported by increasing investments in global capability centres and product engineering.
The difference between metro and Tier-2 markets becomes more pronounced with experience. For AI professionals with 0–3 years of experience, salaries in Tier-2 cities are around 28% lower than in metros. The gap remains between 27% and 29% for professionals with 4–6 years of experience and is around 28% for those with 7–10 years.
For professionals with 11–15 years of experience, the Tier-2 salary gap widens to around 29–30%. Among professionals with more than 15 years of experience, Tier-2 salaries are about 31% lower than metro compensation.
The tracker covers Tier-2 markets including Coimbatore, Kochi, Ahmedabad, Chandigarh, Jaipur and Indore. While AI hiring and talent are becoming more distributed at the entry and mid-career levels, experienced professionals remain concentrated in major technology hubs.
Pune and Chennai are nevertheless developing specialist salary premiums around automotive AI, industrial automation and manufacturing analytics. This suggests that AI compensation is beginning to vary not only by geography but also by the business application of the technology.
Hiring shows early signs of stabilisation
The salary trends come as India’s overall hiring market shows some signs of stabilisation. Hiring activity increased 5% month-on-month in August, although it remained 10% lower than a year earlier.
Healthcare and Pharmaceuticals recorded 16% annual hiring growth, while Travel & Tourism increased 22% and Real Estate grew 10%. At the occupation level, Medical roles recorded 23% growth in hiring, followed by Marketing & Communications at 20%.
Professionals with 7–10 years of experience saw the strongest hiring momentum, with hiring in the segment rising 10% year-on-year. In contrast, hiring for entry-level professionals with 0–3 years of experience fell 9%, while hiring for those with more than 15 years of experience declined 11%.
Among major cities, Bengaluru continued to lead hiring momentum with 5% year-on-year growth, followed by Hyderabad and Kochi. Chandigarh and Kolkata recorded the sharpest declines among the cities tracked.
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First Published on September 2, 2026, 14:10:25 IST
