A new report has revealed a major gap in software engineer salaries across Indian cities, showing how location continues to play a big role in pay scales for tech professionals. According to data compiled by Levels.fyi, Bengaluru — often called India’s Silicon Valley — offers the highest average salary for software engineers, while Ahmedabad sits at the lower end of the spectrum.
The difference is striking — salaries in Bengaluru are nearly four times higher than in Ahmedabad, highlighting how India’s tech economy remains unevenly distributed across its major cities.
Bengaluru Leads India’s Tech Pay Race
The report shows that software engineers in Bengaluru earn around ₹35 lakh per year on average, making it the best-paying city in India for tech workers. The city is home to major global and Indian tech companies, including Infosys, Wipro, TCS, Amazon, Google, and Microsoft, all of which offer competitive pay packages to attract top talent.
With the rise of startups and multinational R&D centres, Bengaluru has become a hub for high-paying roles in AI, machine learning, cloud computing, and software architecture.
An HR expert quoted in the report explained:
“Bengaluru’s pay packages reflect the demand for advanced skills and the global nature of work done there. Engineers working on AI and cloud systems often collaborate directly with US or European teams, which justifies higher salaries.”
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City-Wise Salary Comparison
Here’s a general overview of average salaries for software engineers in major Indian cities, based on the Levels.fyi data and supporting job market surveys:
| City | Average Annual Salary (Approx.) |
|---|---|
| Bengaluru | ₹35 lakh |
| Hyderabad | ₹28 lakh |
| Pune | ₹22 lakh |
| Chennai | ₹20 lakh |
| Mumbai | ₹18 lakh |
| Delhi NCR | ₹17 lakh |
| Ahmedabad | ₹9 lakh |
This comparison shows a clear divide between Tier-1 tech hubs (like Bengaluru, Hyderabad, and Pune) and emerging Tier-2 cities such as Ahmedabad.
Why Bengaluru Pays So Much More
Bengaluru’s high salaries are driven by several factors:
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Presence of global companies: The city hosts offices of Amazon, Google, Microsoft, and Meta, all of which compete for talent.
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Booming startup ecosystem: With companies like Swiggy, Flipkart, Razorpay, and Zepto offering equity and bonuses, competition pushes wages up.
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High cost of living: Rent, food, and transportation are expensive in Bengaluru, so salaries are adjusted accordingly.
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Concentration of tech talent: The best engineers often migrate to Bengaluru, raising the overall skill benchmark and pay scale.
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Remote work hubs: Even remote roles offered by Bengaluru-based companies are linked to city pay standards.
In contrast, Ahmedabad’s IT industry is smaller, with fewer global corporations and startups, leading to lower wage levels.
Ahmedabad’s Growing IT Potential
Although Ahmedabad lags behind in salaries, it’s showing strong potential. With the GIFT City project and an increase in IT and fintech companies setting up offices, the city could see salaries rise in the next few years.
Local IT firms are now offering better packages to retain talent, especially as more engineers prefer staying closer to home due to rising metro costs.
A software professional from Ahmedabad shared on social media:
“Even if the salary is lower, living costs here are almost half of what you’d spend in Bengaluru. I save more even with a smaller salary.”
This highlights another side of the story — while Bengaluru pays more, living expenses can offset much of the salary advantage.
Hyderabad and Pune Close Behind
Both Hyderabad and Pune have emerged as strong alternatives to Bengaluru. Hyderabad’s HITEC City and Pune’s growing IT parks have attracted tech giants like Accenture, Deloitte, IBM, and Tech Mahindra.
Salaries in these cities are slightly lower than Bengaluru, but the cost of living is also more affordable, making them attractive destinations for professionals seeking work-life balance.
Hyderabad, in particular, is becoming a preferred location for AI research and data analytics roles, while Pune is seeing growth in software testing and cloud technology sectors.
Remote Work Changing the Pay Game
The rise of remote work has started to change how salaries are decided. Many companies are now offering location-adjusted pay, meaning employees working from smaller towns may receive slightly lower pay than those in metros.
However, some global companies are shifting to “skill-based pay”, focusing more on what employees bring to the table than where they live. This could help reduce the gap between cities in the long term.
A report by NASSCOM noted that 35% of IT employees in 2025 are expected to work remotely or in hybrid setups, which could normalize salaries across regions.
Skill Still Rules the Market
While location plays a big role, skills remain the biggest salary driver. Engineers specializing in these areas command higher pay:
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Artificial Intelligence & Machine Learning
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Cloud Computing (AWS, Azure, Google Cloud)
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Cybersecurity
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Data Science & Analytics
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Blockchain
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Full-Stack Development
A fresher in these domains can start at ₹10–12 LPA even outside Bengaluru, while mid-level engineers can earn ₹25–40 LPA depending on experience.
Expert Opinions
Industry leaders say that the gap in salaries between cities is not just about geography — it’s about ecosystem maturity.
“Bengaluru has a decades-long advantage in networking, innovation, and mentorship,” said a senior HR manager from Infosys. “Until other cities build similar networks, the salary gap will stay.”
However, they also predict that cities like Hyderabad, Pune, and Ahmedabad could close the gap in the next 5–7 years as more companies expand beyond Bengaluru.
What This Means for Software Engineers
If you’re a software engineer or student planning your career, here’s what this report means for you:
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Location matters — for now: Moving to Bengaluru or Hyderabad can give your career an initial boost in pay and exposure.
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Skills over city: Focus on developing high-demand technical skills to command better pay anywhere.
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Remote jobs are the future: Many global companies are open to remote roles, reducing the need to move to expensive cities.
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Cost of living counts: A ₹9 LPA job in Ahmedabad could be more comfortable than ₹18 LPA in Bengaluru, depending on your lifestyle.
Conclusion
The new salary data highlights both opportunity and inequality in India’s booming IT sector. While Bengaluru continues to dominate as the best-paying city for software engineers, other regions like Hyderabad, Pune, and Ahmedabad are catching up slowly.
The message is clear — your city can influence your paycheck, but your skills determine your career’s long-term success.
With the IT landscape evolving rapidly and remote work becoming mainstream, the next few years may see a more balanced pay scale across Indian cities. Until then, Bengaluru remains the heart of India’s software gold rush.