Average Salary in India in 2026

You need to hire a senior data analyst and fast. You have two great candidates: one in San Francisco who wants US$180,000 and the other in Bangalore who has similar skills and experience. But what should you offer?

India anticipates creating 10–12 million jobs in 2026, making it the second-most in-demand country for jobs worldwide (behind Brazil), according to a survey by ManpowerGroup. The country is now one of the best places to find tech talent, service expertise, and the infrastructure to support remote work dynamics. But most global employers don’t have a clear idea of how much to pay their foreign hires.

Getting salary benchmarks right isn’t just about saving money. It’s the difference between landing top talent and watching them accept offers from competitors who did their homework. So what does the average salary in India look like in 2026? We’ll break down average salary by role, explain how different levels of experience affect pay, and give you the numbers you need to make smart decisions when hiring in India.

What is the average salary in India in 2026?

The average monthly salary in India is expected to be around INR 32,000, which is about INR 3.85 lakh a year (about US$4,600). But averages don’t tell the whole story. Half of India’s workforce earns less than the median salary of INR 27,500 per month.

What does this difference mean? High earners at the top throw off average salary figures. A handful of top executives earning INR 5 million can significantly raise the average, but most employees earn much less. The median shows you more clearly what most workers really take home. For employers, this means that your offer should reflect the median for mid-level jobs, not just an average on the high side.

The location of your prospective hires makes all the difference. In cities like Bengaluru, Mumbai, and Hyderabad, the average monthly salary is between INR 40,000 and INR 80,000. Tier-2 cities’ salaries drop to INR 30,000 to INR 50,000, and Tier-3 cities and smaller towns’ wages range from INR 25,000 to INR 35,000.

The gap is due to the cost of living, business density, and accessibility to multinational employers.

Average salary in India by job role

Salary expectations in India vary widely depending on the role. Here’s what you can expect to pay, monthly and yearly, for the position global companies typically hire for in India.

Note: A lakh equals 100,000 INR.

• Software engineer. INR 71,700/month | INR 8.6 lakh/year (~US$10,300 annually)
• Data analyst. INR 126,700/month | INR 15.2 lakh/year (~US$18,200 annually)
• Customer support agent. INR 20,000/month | INR 2.4 lakh/year (~US$2,900 annually)
• Accountant. INR 33,000/month | INR 4 lakh/year (~US$4,800 USD annually)
• Marketing specialist. INR 74,200/month | INR 8.9 lakh/year (~US$10,700 annually)
• Sales representative. INR 18,000/month | INR 2.16 lakh/year (~US$2,600 annually)
• HR manager. INR 145,000/month | INR 17.4 lakh/year (~US$20,900 annually)
• Project manager. INR 139,400/month | INR 16.7 lakh/year (~US$20,000 annually)
• Administrative assistant. INR 25,000/month | INR 3 lakh/year (~US$3,600 annually)
• Healthcare professional (e.g., nurse). INR 24,900/month | INR 2.98 lakh/year (~US$3,600 annually)

Experience matters. A junior software engineer might make INR 3.5 lakh a year, while a senior professional with seven years of experience can make INR 18 lakh or more. All roles follow this same pattern. New HR managers make a lot less money than those with 10-plus years of experience.

Average pay also depends on where an employee lives. The above numbers represent the whole country, but people who work in Bengaluru or Mumbai usually make 20% to 40% more than those who work in smaller cities. Some of this gap is due to differences in the cost of living, but not all of it. In metro areas, wages rise because people work for multinational companies and in competitive tech ecosystems.

Minimum wage and labor law considerations in India

India doesn’t have a universal minimum wage. Each state sets its own rates based on industry, skill level, and the state itself. The data below reflects the most recent wage structures as reported by India Briefing.

Many states, like Maharashtra, set minimum wages that vary by sector and skill category, with regular updates. Here, you can expect a minimum wage as low as INR 12,442 for unskilled Zone III workers, up to INR 15,236 for skilled Zone I workers.

In more advanced states like Delhi, minimum wages range from INR 18,456 for unskilled workers to INR 23,356 for highly skilled workers, with no zones specified.

Karnataka has a similar but more elaborate system, with different rates for different types of workers and industries (across four distinct zones). In less developed states, the minimum wage is considerably less. So, if wage minimums are relevant to your hiring, make sure to check local regulations.

Compliance is not optional for global employers and outsourcing partners. If you pay someone less than the minimum wage, you could be fined up to INR 10,000 for each underpaid employee. There are regular inspections, and employees can file complaints directly. Knowing about these differences between states protects your business from legal trouble and ensures employees are treated fairly.

Salary trends in India for 2026

Salaries in India are shifting fast. A combination of global demand, digital transformation, and workforce scarcity is rewriting compensation expectations across sectors.

• Wage growth is holding steady at 9%. A recent report from Mercer, a global HR consulting firm, indicates that India Inc. (the umbrella for the country’s corporate and governmental sectors) is projected to increase salaries by 9% in 2026. This is a testament to India’s fast-growing global economy, with auto and tech leading the drive.
• Tech and specialized roles are seeing explosive increases. Salaries are jumping in AI, machine learning, cloud computing, semiconductors, and healthcare sectors. AI and ML professionals alone can see their compensation rise by 15% to 20% annually, with senior roles in global capability centers earning INR 58–60 lakh per year.
• Urban tech hubs command premium pay. Bengaluru leads with mid-to-senior AI and ML salaries ranging from INR 15–40 lakh annually, while Delhi NCR offers INR 10–28 lakh for similar roles. The concentration of multinational companies and startups in these cities creates fierce competition for skilled professionals.
• Remote work is raising the bar for cross-border expectations. Indian workers are moving into international salary bands because of global remote jobs. Senior AI engineers who work from home for companies in other countries can make between INR 60 and 80 lakh, which is much more than what is typical in India.
• Skills shortages and inflation are forcing companies to adapt. Companies are moving away from giving employees annual raises and instead shifting toward pay structures based on skills and short-term performance bonuses. In some areas of construction, wages have gone up by as much as 25% because there aren’t enough people with the right skills.

How to benchmark salaries for remote hiring in India

Getting compensation right starts with real data. To determine the average salary for a job, use salary survey sites, market data tools, and global compensation databases. Salary surveys in your field give you more than just guesstimates about the market, and knowing what employee benefits in India are standard versus optional is just as critical.

It’s not just about being fair to meet local expectations. If you offer too little, other companies that know the market will get the candidates. If you give too much without a plan, you will have problems with pay equity within your company. More and more remote workers in India are comparing their offers to global standards. Because of this, your benchmark needs to take into account both local norms and the realities of working across borders.

Plan for the whole pay package, not just the base salary. Statutory benefits add about 20% to 22% to your gross salary. This includes the Provident Fund (12% from the employer), the Gratuity (4.81%), the Employee State Insurance (3.25% to 4.75% if applicable), and any state-specific professional taxes. Include any bonuses, leave time, and optional benefits like health insurance or learning stipends.

An Employer of Record (EOR) makes this whole process easier. They take care of payroll processing, following compliance regulations, withholding taxes, and managing benefits in INR. You get accurate estimates of costs and don’t have the hassle of dealing with 28 different state labor laws.

FAQs: Average salary in India

Here are answers to the most common questions employers ask when evaluating compensation in India.

What is the average salary in India for software engineers?

Software engineers in India earn an average of INR 71,700 per month, or approximately INR 8.6 lakh annually (around US$10,300). Junior engineers with less than two years of experience typically start around INR 3.5 lakh per year, while senior professionals with seven or more years can command INR 18 lakh or higher. Location matters significantly, with Bengaluru and Hyderabad offering 20% to 40% more than smaller cities.

How much do remote workers in India typically earn?

When Indian employees work for global companies, they generally make a lot more money. Senior professionals who work remotely for international companies can make between INR 60 and 80 lakh a year—significantly more than the average in their home country. In India, the average salary for remote jobs is about INR 29 lakh a year. Remote work has pushed salaries up because Indian workers can now see what other countries pay.

Is $500/month a good salary in India?

US$500 per month translates to roughly INR 42,000, which sits above the national average monthly salary of INR 32,000 and well above the median of INR 27,500. For entry-level or administrative roles, this is competitive. However, for specialized roles like software engineering or data analysis in metro cities, it falls below market expectations.

What factors influence salaries in India the most?

The biggest pay gaps are between people with different levels of experience. Senior professionals make 3–5 times more than junior professionals in the same role. The second most important thing is where you live. Metro cities like Bengaluru and Mumbai pay 20% to 40% more than Tier-2 or Tier-3 cities. There are also big differences between industries and specialized skills. For example, tech, healthcare, and AI jobs will pay 15% to 30% more in 2026.

How do Indian salaries compare to the U.S. or the U.K.?

In absolute terms, Indian salaries are much lower, but they are rising faster. In 2026, India’s average salary is expected to go up by 9%, while the U.S., U.K., and Europe will only see a 2% to 4% increase. A software engineer in India who makes INR 8.6 lakh (US$10,300) a year makes significantly less than a U.S. engineer at US$80,000 to US$120,000. But the difference in the cost of living means that Indian professionals still have a lot of buying power at home, and remote work is slowly closing the pay gap for global roles.

Hire confidently in India with local salary insights

Leveraging India’s talent pool isn’t just about saving money. It’s about making smart offers that draw in the right people and keep them on your team. When you know the real numbers, you can hire people faster and compete better.

Pebl’s global EOR services, with integrated global payroll solutions, take care of the administrative details, so you can focus on growing. We handle compliance, tax withholding, statutory benefits, and structuring compensation for all 28 Indian states. You can hire the best people without having to set up local businesses or stay up-to-date on new labor laws.

Are you ready to hire in India? Let Pebl help you grow your business around the world by providing compliant, efficient payroll and hiring solutions tailored to your needs. Contact us to learn more.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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