What 2025 salary trends mean for hiring decisions in 2026 

Tech salary trends have changed during 2025. After several years of volatility, tech salaries in 2025 have moved into a period of relative stability, with most permanent tech salaries increasing between 3% to 8% over the year. This reflects a market that has stabilised and is moving forward with cautious optimism (Ian Cruickshank, Managing Director).

For employers, this has created a more predictable environment for workforce planning. However, it has also reinforced the need for greater selectivity and a clear understanding of where salary investment delivers the most value.

Drawing on our 2025 Tech Hiring Insights Report, this snapshot highlights what last year’s salary trends mean for employers planning for 2026.

Targeted salary growth

Rather than widespread inflation across all roles, salary growth in 2025 has been highly targeted. The strongest upward movement was seen in senior and specialist positions, particularly where skills shortages align with transformation-led hiring and immediate business priorities.

This reflects a broader shift in hiring behaviour. Many organisations are prioritising experienced hires who can deliver impact quickly, rather than expanding teams through volume hiring. As a result, salary premiums remain most evident at the senior end of the market, while movement across junior and generalist roles has been more limited.

What this means for 2026:
 Salary pressure is likely to persist in specialist and hard-to-hire areas. Employers will need to be clear on where targeted investment delivers the greatest return, rather than relying on across-the-board increases.

Changing candidate expectations

As salary growth has stabilised, the wider employment offer has taken on greater importance. Our data shows that flexibility continues to shape candidate decision-making, with remote and hybrid working now rivalling pay as a key driver for job moves.

For employers, this reinforces the need to look beyond base salary when attracting and retaining talent. Flexibility, development opportunities and overall quality of life are now central considerations in a competitive market.  

What this means for 2026:
 Total reward matters more than ever. Employers that balance competitive pay with flexibility and long-term development will be better positioned to secure in-demand skills.

Planning ahead for 2026

As organisations plan for 2026, the challenge is less about headline salary inflation and more about understanding where genuine pressure exists and how to respond strategically. Employers that align pay decisions with market insight, flexibility and long-term capability needs will be better positioned to hire with confidence this year.

Read our full 2025 Tech Hiring Insights Report to explore the trends shaping tech salaries and hiring decisions as organisations plan for 2026.