Salaries for artificial intelligence (AI)-related roles in India have compounded 23 per cent between 2024 and 2026, even as pay in several legacy technology categories has declined or flatlined, according to a report released on Wednesday, 2 September by jobs platform foundit. The findings point to a deepening compensation divide within India's technology job market.

AI Leads All Categories in Salary Growth

Among all tracked job categories, AI recorded the highest year-on-year salary growth of 12 per cent last year. Computer and Network Security and Semiconductors followed at 9 per cent each. By contrast, sectors such as computer hardware and e-commerce saw pay declines, while IT Services stagnated over the same two-year period.

Entry-level AI professionals with 0–3 years of experience earn between ₹8.87 LPA and ₹15.41 LPA, with compensation rising sharply to ₹70.99–₹89.24 LPA for those with more than 15 years of experience. Cybersecurity commands the single highest salary ceiling across all tracked categories, at ₹97.81 LPA.

Bengaluru Leads, Hyderabad Closes the Gap

AI compensation varies considerably by city, reflecting the concentration of product companies, AI-first startups, and global capability centres (GCCs). Bengaluru remains India's highest-paying market for AI talent: senior professionals there earn ₹61.70–₹91.25 LPA — roughly 10–15 per cent more than in NCR or Mumbai, and up to 40 per cent more than in Chennai at the senior level.

Hyderabad is emerging as the closest challenger to Bengaluru, backed by expanding GCC and product engineering investments in the city. This geographic clustering suggests that professionals willing to relocate to these hubs may command meaningfully higher packages.

Legacy Tech Pay Under Pressure

The picture is markedly different for conventional IT roles. Entry-level pay in Information Technology and IT Services starts at ₹2.68–₹5.08 LPA and reaches ₹57.55–₹72.13 LPA at over 15 years of experience — but both categories recorded a 1 per cent pay decline in the last year alone. This comes amid broader automation of routine software development and maintenance tasks, which has reduced employer appetite for generalist IT profiles.

Growth Beyond Technology: Semiconductors and Automation

Outside core technology, salary growth is concentrated in sectors building new industrial capabilities. Semiconductors have compounded 17 per cent over two years (7 per cent, then 9 per cent), while industrial automation has grown 13 per cent (5 per cent, then 8 per cent) — both accelerating in the second year. Senior salaries reach ₹58.90 LPA in industrial automation and ₹48.49 LPA in semiconductors.

Automotive recorded 6 per cent growth in the last year. In healthcare, Medical Practice saw 8 per cent salary growth with senior compensation of ₹56.70 LPA, followed by Medical Devices at 6 per cent and Pharmaceuticals at 4 per cent.

What Industry Leaders Are Saying

Tarun Sinha, CEO of foundit, said companies are becoming increasingly selective about what they pay a premium for. '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,' Sinha said.

Sinha added that professionals should expect salary growth to increasingly favour those who continuously deepen and renew their skills as business priorities shift. As India's talent market recalibrates around capability over tenure, the divide between AI-skilled and legacy-skilled workers looks set to widen further.