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Salary Hike Expectations for Software Engineers in India

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Salary Hike Expectations for Software Engineers in India

In India’s ever-evolving tech landscape, software engineers have long been seen as the core engine of growth. But in 2025, the rules of the game are shifting.

With global cost pressures, AI disruption, and growing expectations around productivity, the big question is:
What kind of salary hike can software engineers realistically expect this year?

The 2025 Context: No More Blanket Double-Digit Hikes

The post-pandemic boom has settled.
In 2025, salary hikes are more selective, skill-driven, and role-specific than ever before.

“It’s no longer about how many years you’ve worked. It’s about the value you bring—especially in niche tech areas.”
— NASSCOM HR Trends Report 2025

2025 Salary Hike Snapshot: Realistic Expectations

Profile

Expected Annual Hike

Notes

Entry-Level (0–2 yrs)

6–10%

Tier-1 cities pay higher; ₹4.5–6.5 LPA range

Mid-Level (3–7 yrs)

10–15%

Cloud, full-stack, DevOps > core backend

Senior Engineers (8–12 yrs)

12–18%

Strong demand in product/startups, less in IT services

Architects / Niche Specialists

18–25%

AI/ML, blockchain, cybersecurity lead this group

Job Switchers (any level)

20–35%

Especially high for product, fintech, SaaS firms

Hikes at large IT services companies (Infosys, TCS, Wipro) remain conservative at 5–9%.
But product companies (Swiggy, Zoho, Razorpay, Gojek) are offering much more aggressive raises.

What’s Driving the Numbers?

1. Skills > Seniority

Companies are investing in tech professionals who bring direct business impact — via automation, AI, platform engineering, or scalable backend systems.

2. AI Isn’t Killing Jobs — It’s Reshaping Them

There’s reduced headcount growth in generic dev roles, but a surge in demand for engineers skilled in:

  • LLM integration

  • MLOps

  • Data engineering

  • Cybersecurity and cloud infra

3. Product > Services

Product companies and funded startups are paying 15–30% more than IT services — especially for frontend/backend leads, DevOps, and data roles.

4. Location Still Matters

City

Hike Potential

Bengaluru

Highest – 12–18% avg for in-demand roles

Hyderabad

Strong for cloud, platform, mid-level talent

Pune & NCR

Competitive for fintech, B2B SaaS

Chennai

Fast-rising hub for backend, automation

Tier-2 Cities

Slower hike pace, but growing rapidly with remote/flex models

 

How to Maximize Your Salary Growth in 2025

1. Target High-Value Domains

AI, cloud security, data infra, and dev tools are where the money is.

2.  Show Measurable Impact

Hiring managers want engineers who’ve improved performance, reduced cost, or scaled systems — quantify your wins.

3. Switch Roles Strategically

Use job changes to move not just horizontally, but up the value chain. Look for growth, not just a new company.

4. Use Location to Your Advantage

Proximity hiring is back. Companies want talent closer to office zones — and job seekers want roles closer to home.

Final Word: The Market Is Selective, But Rewarding

In 2025, software engineers in India are still in high demand — but only for the right skills, right attitude, and right roles.

Salary hikes may no longer be automatic, but for those who:

  • Invest in niche expertise

  • Think like product owners

  • Leverage smart job platforms like InRadius

— the rewards are still substantial.

So instead of hoping for a raise, go earn one.
Because the best hikes in 2025 are the ones you engineer yourself.