The IT sector in 2025 presents a mixed bag of opportunities and challenges for professionals seeking salary increments. While the industry shows signs of recovery from previous economic headwinds, salary hikes remain cautiously optimistic across major IT companies.
Current Salary Hike Landscape
TCS has taken the lead, announcing hikes ranging from 4-8 per cent effective April 2025, setting the tone for the rest of the industry. However, other major players like Infosys, HCLTech, Wipro, and Tech Mahindra are adopting a wait-and-watch approach before finalizing their increment announcements.
The overall salary increment scenario varies significantly based on skills and specialization. Corporate India is likely to witness annual salary hikes in the range of 6%-15% this year, depending on the industry, role criticality, and niche skills with some roles commanding even higher premiums.
Key Trends Shaping IT Salaries in 2025
AI and Emerging Skills Premium
Professionals with AI-related skills and emerging technologies are positioned for substantial growth. This figure may touch as high as 40 per cent for emerging skills and critical leadership roles, making specialized skills a crucial differentiator in the current market.
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Conservative Approach by Major Players
The average salary hike among India’s top five (IT) firms will be in the 5-8.5% range, indicating a cautious but steady approach to compensation growth. This conservative stance reflects the industry’s focus on sustainable growth amid economic uncertainties.
Leadership and Executive Compensation
At the leadership level, CEO pay in Nifty50 companies surged by 18-20% from 2023 to 2024. This trend shows that while entry and mid-level positions see moderate increases, executive compensation continues to grow significantly.
What This Means for IT Professionals
The 2025 salary landscape rewards specialization and adaptability. Professionals should focus on:
- Skill Development: Investing in AI, machine learning, and emerging technologies
- Career Positioning: Targeting roles with high criticality and niche requirements
- Market Awareness: Understanding industry-specific trends and timing career moves strategically
Industry Outlook
Salaries are expected to grow steadily and sustainably in the coming year, with the job market for tech workers improving for both traditional IT services and product companies. This positive trajectory suggests better opportunities ahead for skilled professionals.
The salary hike patterns in 2025 reflect the IT industry’s transition toward value-based compensation, where specialized skills and critical roles command premium salaries while maintaining overall fiscal discipline.
Frequently Asked Questions
TCS has been the first major IT company to announce salary hikes for 2025, with increments ranging from 4-8%. Other major players like Infosys, HCLTech, Wipro, and Tech Mahindra are expected to announce their hike policies soon.
The average salary hike among India’s top IT firms is expected to be in the 5-8.5% range. However, professionals with AI and emerging technology skills may see increases as high as 40% for critical roles.
Focus on developing AI and machine learning skills, target niche technology roles, and position yourself in critical projects. Specialized skills in emerging technologies are commanding premium salaries in the current market.