Salary hikes during job switches are significantly higher than annual increments in India. While internal appraisals typically deliver 8-15% hikes, job switches average 25-40%. Understanding the benchmarks helps you negotiate effectively without underselling or overpricing yourself.
Industry benchmarks for 2026: IT Services to IT Services: 20-35% hike is standard. IT Services to Product Company: 40-100% hike (due to the structural pay gap between services and products). Product to Product (similar level): 25-40% hike. Product to Product (with promotion): 35-60% hike. Startup to MNC: 20-40% but with more stability. MNC to Startup: Variable — might take a cut on base but gain stock options.
Factors that affect your hike percentage: Current underpayment (if you're below market, expect higher hikes), In-demand skills (AI/ML, cloud, security specialists get 40-80%+ hikes), Notice period (immediate joiners sometimes get higher offers due to urgency), Multiple offers (competing offers give maximum leverage), Company stage (well-funded startups and scaling product companies offer the highest hikes), and Market conditions (2026 India has a strong hiring market, favoring candidates).
How to negotiate beyond the percentage: Don't just negotiate a percentage over your current salary — negotiate based on the market rate for the role. If the market rate for your target role is ₹25 LPA and you're currently at ₹15 LPA, a 'standard 30% hike' would give you ₹19.5 LPA — significantly below market. Instead, negotiate for ₹23-25 LPA based on market data. This reframing can mean the difference between a 30% hike and a 60% hike.