Maximizing Salary Hikes When Switching Jobs in Indian IT

Switching jobs after 2-3 years can be a strategic move that not only changes your professional direction but also impacts your salary positively. In this article, we explore the average salary hikes in the Indian IT sector and provide strategies to negotiate higher salaries effectively. By understanding the dynamics of salary hikes and negotiation techniques, you can maximize your earning potential.

Understanding Salary Hikes in Indian IT

When considering a job switch in the Indian IT sector, it is crucial to understand the average salary hikes that professionals experience. According to recent statistics, the average salary hike in FY24 is estimated to be between 20-30 percent. However, the actual amount can vary based on individual performance, experience, and the company's policy.

Strategies for Negotiating a Salary Hike

Initial Ask for Salary Hike

Once you receive an offer from a new company, it is important to make an initial ask that reflects your expectations. For most professionals, a 20-30 percent hike upon receiving the offer is a reasonable request. This shows that you are making a strategic move to improve your earning potential and expect fair compensation for your skills and experience.

Counter Offer and Target Hike

Upon receiving the initial offer, it is wise to counter with an additional 20 percent. This step demonstrates your flexibility and willingness to work within a reasonable range. The target is to aim for an overall salary hike of 80-90 percent. While this is ambitious, it reflects the potential you bring to the company and can be a significant motivational factor for the employer.

My Career Journey and Salary Increase

Let me share my own journey to illustrate how these strategies can be put into practice. When I started my first job in May 2017 with a small company in Pune, my initial salary was 1.88 LPA (lac per annum). Over the next three years, I received steady raises, with my salary increasing to 2.4 LPA after one year, 3.2 LPA after two years, and ultimately 4 LPA by the time I left in September 2020. With 3.4 years of experience, I had already achieved a substantial salary increase.

My next role at STL in Pune, starting September 2020, brought a 50 percent switch hike to 6 LPA, with a 5.5 LPA base and a 50K monthly variable. However, I stayed for only four months before leaving in January 2021 with 3.9 years of total experience.

Undeterred, I made another career move in February 2021 to join Cognizant. This switch came with a significant 107 percent hike, bringing my salary to 13.89 LPA. Over the following year, I received two more raises: a 10 percent increase that brought my salary to 13.89 LPA and a second increase to 14.89 LPA. By the time I left Cognizant, I had 6.11 years of experience and a salary of 16.34 LPA.

My most recent move in July 2024 was to Synechron, where I now earn 32.8 LPA, representing a 100 percent hike from my previous salary. This represents a total of 7 years of experience and a staggering 1645 percent increase from my initial 1.88 LPA starting salary.

Key Factors Contributing to Exceptional Salary Growth

The key factors that contributed to this exceptional salary growth include:

Consistently gaining valuable experience and skills over time. Strategically changing jobs every 1-2 years to negotiate higher salaries. Leveraging job changes to secure raises ranging from 50 to 107 percent. Receiving regular performance-based raises, including a 10 percent hike. Continuously developing my expertise and taking on more senior roles.

While the path has not been linear, proactively managing my career progression has allowed me to achieve this remarkable 1645 percent salary increase over the course of my 7-year career. The willingness to change jobs every few years has been a crucial part of maximizing my earning potential.

Upvote if you like my journey and want to know how I prepared for interviews. Feel free to share your experiences and tips in the comments below.