AI-Based Salary Prediction System Using Machine Learning and Feature Engineering

  • Unique Paper ID: 199193
  • Volume: 12
  • Issue: 11
  • PageNo: 12108-12112
  • Abstract:
  • Accurate salary estimation is a critical challenge in modern Human Resource (HR) management. This paper presents an AI-based salary prediction system, Salary Scope, developed using Python, Streamlit, and Scikit-learn. The core research problem addressed is the absence of an interpretable, real-time, multi-currency salary prediction tool that integrates domain-driven feature engineering with a deployable web interface—a gap not addressed by prior classification-focused or NLP-dependent approaches. The system employs a Linear Regression model trained on a multi-feature employee dataset enriched through domain-driven feature engineering, including experience bonus computation (validated against industry compensation surveys), education premium mapping, location-based salary adjustment, and workload factor derivation. Feature values are derived from statistical analysis of compensation literature rather than fixed arbitrarily. Categorical variables are systematically encoded using One-Hot Encoding within a unified machine learning pipeline. The interactive Streamlit-based web interface enables real-time salary prediction with multi-currency support including INR conversion for Indian users. A modular, layered software architecture ensures maintainability and scalability. Five distinct testing strategies were employed to validate system correctness. The system bridges the gap between raw HR data and actionable compensation intelligence.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{199193,
        author = {Mallela Lokesh and Konka Tarun and Shabeer V.V},
        title = {AI-Based Salary Prediction System Using Machine Learning and Feature Engineering},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {11},
        pages = {12108-12112},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=199193},
        abstract = {Accurate salary estimation is a critical challenge in modern Human Resource (HR) management. This paper presents an AI-based salary prediction system, Salary Scope, developed using Python, Streamlit, and Scikit-learn. The core research problem addressed is the absence of an interpretable, real-time, multi-currency salary prediction tool that integrates domain-driven feature engineering with a deployable web interface—a gap not addressed by prior classification-focused or NLP-dependent approaches. The system employs a Linear Regression model trained on a multi-feature employee dataset enriched through domain-driven feature engineering, including experience bonus computation (validated against industry compensation surveys), education premium mapping, location-based salary adjustment, and workload factor derivation. Feature values are derived from statistical analysis of compensation literature rather than fixed arbitrarily. Categorical variables are systematically encoded using One-Hot Encoding within a unified machine learning pipeline. The interactive Streamlit-based web interface enables real-time salary prediction with multi-currency support including INR conversion for Indian users. A modular, layered software architecture ensures maintainability and scalability. Five distinct testing strategies were employed to validate system correctness. The system bridges the gap between raw HR data and actionable compensation intelligence.},
        keywords = {Salary Prediction, Machine Learning, Linear Regression, Streamlit, Feature Engineering, One-Hot Encoding, Human Resource Analytics, Web Application, Real-Time Prediction.},
        month = {April},
        }

Cite This Article

Lokesh, M., & Tarun, K., & V.V, S. (2026). AI-Based Salary Prediction System Using Machine Learning and Feature Engineering. International Journal of Innovative Research in Technology (IJIRT), 12(11), 12108–12112.

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