Got No Hike This Year? How to Negotiate, or Switch, in 2027
If your appraisal letter this year said "0%" — or a number that barely beats inflation — you're far from alone. More than one in three Indian tech workers got no hike or a pay cut in the latest appraisal cycle (Blind). Most say it wasn't about their own performance.
The good news: a flat year doesn't have to mean a flat career. This guide explains what happened, what the 2027 pay market looks like, and exactly how to decide between negotiating where you are and switching — with scripts, numbers and a step-by-step plan.
The quick answer
- First, find out why. If it's company-wide cost-cutting, negotiate for something specific (a mid-year review, a role change or skills support). If it's your role or rating, fix that — or move.
- Know the gap. India Inc plans average raises of 9.1% in 2027, but tech services sit lowest at 6.6% (Business Standard). Switching typically pays far more: tech moves land around 30–40% at mid-level (Pigment).
- Skills set your price. AI, machine learning, cybersecurity and cloud skills command premiums of 30–40% (EY).
- Don't quit in anger. Line up the next role first, and use the next three months to prepare.
What happened this appraisal cycle
Blind surveyed 2,178 India-based tech professionals between 15 and 26 October 2026 (Content Media Solution).
Key findings
- Low hikes are now the norm. 59% received a hike of 5% or less, up from 34% in 2025 (Blind).
- Most people are unhappy. 63% are dissatisfied, including 47% who are very dissatisfied; among those with no hike or a cut, 83% are dissatisfied (Blind).
- Some employers were hit hard. At Zoho, 95% of respondents got no raise or a pay cut; no hike or a cut was also common at Oracle (60%), Salesforce (42%), Cisco (40%) and Amazon (36%) (Blind).
- But not everyone. Amazon's results were split: 36% got no raise or a cut, while 33% got raises above 15% (Blind). Nutanix gave over 10% hikes to most of its staff (NewsBytes).
The split matters: within the same company, some people got nothing while others got big raises. That tells you where the money is going — and how to get some of it.
Why it happened: three possible reasons
Asked what drove their result, workers pointed to:
| Reason | Share of respondents |
|---|---|
| Company's financial performance or cost-cutting | 41% |
| Their individual performance rating | 22% |
| AI and automation changing team priorities | 18% |
Source: Blind.
Why this matters for your next move. The right response depends on which reason applies to you:
- Company-wide freeze. Pushing hard for a raise now probably won't work — the budget isn't there. Negotiate for things that cost less now but pay later, or prepare to move.
- Your rating. Ask for specific, written feedback and a plan. If you disagree with the rating, say so calmly with evidence.
- Your role is losing priority. If AI or a strategy shift is reducing your team's importance, raises will keep shrinking. That's the strongest signal to reskill or move.
Pay is being targeted, not spread evenly. Employers are differentiating more sharply between high-impact talent and average performers, and putting more weight on scarce digital and AI skills (People Matters). Top performers can earn up to 1.6 times more through targeted pay (EY). A flat year is often a sign that your current role isn't in the group being rewarded.
What the 2027 pay market looks like
Overall, raises are steady. Aon's survey of more than 1,200 companies projects average raises of 9.1% in 2027, with NBFCs leading at 10.1% and tech services lagging at 6.6% (Business Standard). Real wage growth, after inflation, is estimated at 5.1% in 2027, up from 4.3% in 2026 (Business Standard).
Where you work in tech matters more than ever. Tech product companies plan raises of 9.5% for 2027, compared with 6.6% for tech services (CapitalVia). With retail inflation at 5.54% in September 2026, a 6.6% raise leaves little real growth (CapitalVia).
Skills drive the biggest premiums. AI, generative AI, machine learning, cybersecurity and cloud skills command premiums of 30–40% (People Matters). In an Indeed study, 26% of employers put AI premiums at 31% to 50% (360 Digital Transformation).
People are moving. Attrition is projected to rise to 18% (Business Standard), which means more openings — and more employers competing for skilled people.
What switching typically pays
| Level | Typical tech switch hike |
|---|---|
| Junior | 35–45% |
| Mid-level | 30–40% |
| Senior leaders | 20–30% |
Source: Michael Page salary guide, as reported via Pigment.
Other surveys are more conservative: the Michael Page India Salary Guide 2026 reported increments stabilising at 8–12%, with specialised experts securing up to 30% on a job change (360 Digital Transformation). And expectations run high: 70% of professionals in a foundit survey expect at least 21% when switching (Pigment). Realistically, plan for 20–35% on a like-for-like move, and more only with scarce skills or a bigger role.
Stay or switch? A simple decision framework
A flat year is a signal, not a sentence. Use these questions to decide.
| Signal | Lean towards staying and negotiating | Lean towards switching |
|---|---|---|
| Reason for no hike | Company-wide freeze, expected to lift next cycle | Your rating, or your team losing priority |
| Your learning curve | You're still learning and building skills | You've plateaued for a year or more |
| Manager support | Your manager backs you and can commit to a plan | Vague answers, no written commitments |
| Your pay vs market | Within about 10–15% of market for your role | 20% or more below market |
| Big upcoming event | Promotion, vesting, retention bonus or a major project due soon | Nothing meaningful in the next 6–12 months |
| Sector and company type | Product company, GCC or a growing business | Tech services, with low budgets for your role |
| Personal situation | You need stability right now (a loan, a move, family needs) | You can handle a 2–3-month notice and job search |
The cost of staying put, in numbers. As an illustration, take someone earning ₹15 lakh:
- Staying with three years of 6.6% raises (the tech services average): about ₹18.2 lakh after three years.
- Switching once with a 30% hike, then two years of 9.1% raises: about ₹23.2 lakh after three years.
That's a gap of about ₹5 lakh a year — and it compounds, because every future raise is calculated on a higher base. This is why one well-timed switch can matter more than several good appraisals.
But switching isn't automatically better. A bigger number at a shakier company, with longer hours or no learning, can cost more than it pays. Compare total compensation, stability, learning and growth — not just the hike percentage.
How to negotiate when you got no hike
When there's no budget, a straight "please revise my hike" usually fails. The better approach is to negotiate for commitments and non-salary value — and to get them in writing.
Step 1: Prepare before you talk
- List your results for the year with numbers: revenue, savings, time saved, projects delivered, problems solved.
- Check your market rate for your role, city and experience. Use salary reports, job postings and conversations with recruiters.
- Decide your ask and your fallback before the meeting.
- Pick the right moment: a separate one-to-one a week or two after appraisals, not in the heat of the rating conversation.
Step 2: Ask the right questions
"I'd like to understand the decision behind my increment. Was it driven by my performance, my role, or a company-wide budget constraint?"
The answer tells you which path to take.
Step 3: Negotiate for what's possible
| If they say... | Ask for... |
|---|---|
| "It's a company-wide freeze" | A written mid-year salary review (e.g. in six months), a one-time bonus, or a retention component |
| "Your rating was average" | Specific feedback, measurable goals and a review date to reassess |
| "There's no budget for your role" | A move to a higher-priority team or project, or a stretch role |
| "We can't change pay now" | A title or promotion timeline, paid certification or course, ESOPs/RSUs, more flexibility or extra leave |
Useful scripts
Asking for a mid-year review:
"I understand the budget is tight this year. Given what I delivered — [two or three results] — could we agree to a formal salary review in [month], with clear goals I can work towards? I'd appreciate having that in writing."
Asking for growth instead of money:
"If a raise isn't possible now, I'd like to invest in skills the business needs. Could the company sponsor [certification/course] and let me take on [AI/automation/cloud] work on [project]?"
Raising the market gap (calmly, without threats):
"I've looked at the market for my role and experience, and I'm currently around [X]% below it. I'd like to stay and grow here — what would it take to close that gap over the next year?"
What not to do
- Don't threaten to leave unless you have an offer and are ready to go.
- Don't compare yourself with named colleagues; talk about your results and the market.
- Don't accept vague promises. "We'll look at it later" isn't a commitment; ask for a date and put it in an email afterwards.
A word on counter-offers. If you resign and your employer suddenly matches an offer, ask yourself why it took a resignation. Counter-offers can work if the reasons you wanted to leave are also fixed; if only the money changes, many people end up leaving anyway.
How to switch smartly in 2027
Aim where the money is going
- GCCs and product companies generally pay more than tech services. Tech products plan 9.5% raises for 2027 versus 6.6% for services (CapitalVia), and GCCs are among the strongest payers (EY).
- Financial services is a strong option for tech and operations professionals, with NBFCs leading 2027 raises at 10.1% (Business Standard).
- AI-adjacent roles are growing: AI hiring rose 16% year on year in June 2026 even as overall IT hiring fell 3%, according to Naukri (Anantam IAS).
A 90-day switch plan
Days 1–30: Get ready
- Update your CV with measurable achievements, and tailor it for each target role. Build it free on ResumeMinter.
- Refresh LinkedIn and Naukri: headline, skills, recent projects and "open to work" settings visible to recruiters.
- Pick one in-demand skill to strengthen (AI tools in your domain, cloud, data or security) and start a small project you can show.
Days 31–60: Get in front of hiring managers
- Lead with referrals. In India, 20–30% of referred candidates get hired, compared with 1–3% through job boards (The People's Board). Message former colleagues and managers directly.
- Apply selectively to 10–15 well-matched roles rather than hundreds of random ones.
- Prepare stories for interviews: problems you solved, numbers you moved, and how you use AI tools in your work.
Days 61–90: Negotiate and close
- Anchor on market rate, not your current salary. If your current pay is low after a flat year, a percentage hike on it understates your value.
- Compare total compensation: fixed pay, variable pay (and how reliably it's paid), joining bonus, ESOPs/RSUs, insurance and leave.
- Use a joining bonus to cover gaps, such as a notice-period buyout or a bonus you'll lose by leaving.
- Check your take-home pay under the new labour codes, since the structure of an offer affects your in-hand salary. See our guide on the new labour codes.
- Get everything in writing before you resign.
Avoid these switching mistakes
- Resigning before you have a signed offer.
- Chasing only the percentage. A 40% hike at an unstable company can be worse than 25% at a growing one.
- Ignoring the notice period. Long notice periods put off some employers; plan your timeline and ask about buyouts.
- Surprises in background checks. Make sure your dates, titles and documents match your CV. See our Background Verification guide.
- Leaving on bad terms. You'll need a relieving letter and references — serve your notice professionally.
Your no-hike action checklist
This week
- Ask your manager what drove your increment: company budget, your rating, or your role
- Write down your top results for the year, with numbers
- Check your market rate for your role, experience and city
This month
- Have a calm one-to-one; ask for a written mid-year review or a non-salary alternative
- Update your CV and LinkedIn, even if you plan to stay
- Pick one in-demand skill to build and start a small project
Next 90 days
- Decide: stay with a written plan, or start a focused switch
- If switching, contact your network for referrals and apply selectively
- Compare offers on total compensation, stability and learning — not just the hike
- Resign only after a signed offer
The bottom line: a zero-hike year is frustrating, but it's information. Find out why it happened, then act: negotiate for commitments if your company and role still have a future, or make a well-planned switch to a sector, company or skill set where pay is growing. In a market where raises are increasingly targeted, the people who move deliberately — not angrily — come out ahead. Start by building a sharper CV, free, on ResumeMinter.