A new report by Deel, a global HR and payroll company, reveals that despite nominal salary increases, Indian tech workers are facing a decline in real earnings due to rising inflation. The 3% salary growth is outpaced by inflation, leading to a 2.5% year-over-year decline in real earnings.

The State of Global Compensation report, in partnership with Carta, an equity management platform, also highlights the persistent gender pay gap in India, particularly in tech roles.

"India's compensation landscape is a complex one, with nominal salaries increasing by 3% but real earnings declining due to inflation," said Sumit Sabharwal, Deel's Country Leader for India.

Deel's data also shows that men and women still get paid differently around the world.  Women in India, especially in engineering and data roles, continue to earn less than their male counterparts, although the gap is narrower than in other markets like the US and Canada.

For example, in India in engineering and data roles, men earn a median salary of $35K compared to $26K for women,  added Sumit.

The US tech industry has rebounded strongly, with compensation levels surpassing pre-pandemic levels, especially for engineering and data roles.

Canada, the US, and Great Britain continue to lead in terms of overall compensation across all job types.

Software engineers worldwide receive substantial equity grants, often amounting to 75-150% of their annual salary.

The tech industry is increasingly relying on independent contractors, particularly in product and design roles.

This trend is especially pronounced in India, where 56% of product and design roles are held by independent contractors.