India salary increments FY27: 8.6–10.2% growth across industries, TeamLease report
Synopsis
India's FY27 salary outlook is no longer a single number — it is a tiered map. TeamLease's survey of 1,268 businesses across 23 industries shows EV, FinTech, and Healthcare pulling increments past 10%, while Banking and Telecom settle near 8.6%. Equally significant: Chennai, Pune, Hyderabad, and Ahmedabad are emerging as new salary growth hubs, signalling a decisive shift away from metro concentration.
Key Takeaways
India's average salary increments for FY2026–27 are projected at 8.6% to 10.2% , per TeamLease Services .
High-growth sectors — EV and EV Infrastructure , FinTech , Healthcare and Pharmaceuticals , and Power and Energy — are expected to see increments of 9.6% to 10.2% .
Electrical Engineers top role-level projections at 11.2% , followed by Quality Control Inspectors at 10.9% .
Gradual growth industries such as Banking , Telecom , and Textiles are projected at 8.6% to 8.8% .
Chennai , Pune , Hyderabad , and Ahmedabad identified as key salary growth hubs, signalling decentralisation of compensation growth.
Report is based on insights from 1,268 businesses across 23 industries and 20 cities .
India is projected to record average salary increments of 8.6 per cent to 10.2 per cent in FY2026–27, driven by sustained demand for skilled and execution-focused talent, according to a report released on Tuesday, 9 June by TeamLease Services. The findings, drawn from insights across 1,268 businesses spanning 23 industries and 20 cities, point to a labour market that is increasingly differentiated by sector and role rather than uniform across the board.
High-Growth Industries Lead the Pack
Industries classified under the high-growth category are expected to post salary increments in the range of 9.6 per cent to 10.2 per cent. Sectors leading this cohort include EV and EV Infrastructure, FinTech, Healthcare and Pharmaceuticals, and Power and Energy. These sectors are benefiting from a combination of policy tailwinds, capital inflows, and acute shortages of specialised talent.
At the role level, Electrical Engineers are projected to see the highest increments at 11.2 per cent, followed by Quality Control Inspectors at 10.9 per cent, IT Support Executives at 10.3 per cent, and both Quality Assurance Engineers and Site Engineers at 10.2 per cent.
Sustainable and Gradual Growth Segments
Industries under the sustainable growth category — including Automotive, Retail, Insurance, and BPO — are projected to see increments between 8.9 per cent and 9.5 per cent. Within this band, select roles continue to outperform: Project Engineers are projected at 10.7 per cent, while EHS Officers, IT Support Executives, and Relationship Executives are each pegged at 10.1 per cent.
A more measured compensation outlook applies to gradual growth industries such as Banking, Construction and Real Estate, Telecommunications, and Textiles, where increments are projected between 8.6 per cent and 8.8 per cent.
Emerging Cities Reshaping the Salary Map
The report identifies Chennai, Pune, Hyderabad, and Ahmedabad as key salary growth hubs in India's evolving employment landscape. This signals a structural shift away from compensation growth being concentrated solely in traditional metro markets such as Mumbai and Bengaluru.
'India's salary landscape in FY2026–27 is becoming more differentiated and execution-led. Increment trends are increasingly being shaped by sector-specific growth and specialised skills. At the same time, compensation growth is no longer concentrated only in traditional metro markets,' said Balasubramanian A, Senior Vice President, TeamLease Services.
Functional Areas Driving Momentum
Across functional areas, growth momentum is most visible in Sales and Marketing, Engineering, and IT, according to the report. The overall trend points towards a more balanced and distributed employment market, with emerging cities steadily strengthening their position in the talent economy, supported by industrial expansion and enterprise investments.
This comes amid a broader recalibration of India's workforce priorities, where execution capability and domain specialisation are commanding premium compensation over generalist profiles. As FY27 unfolds, the trajectory of salary growth will likely remain anchored to sector-led demand and the pace of industrial expansion in non-metro hubs.
Point of View
And that is not a bad thing. The old model — where a handful of IT-heavy metros set the tone for the entire market — is giving way to a more granular, sector-driven dynamic. The real story here is the emergence of Ahmedabad and Chennai as salary growth hubs, which reflects the geographic spread of manufacturing and energy investments. What the report does not address is whether these increments are keeping pace with cost-of-living increases in these emerging cities, where infrastructure and housing costs are rising sharply alongside salaries. The 11.2% projection for Electrical Engineers also deserves scrutiny: it reflects a genuine skills shortage in the EV and energy transition space, but supply-side pipelines from engineering colleges have not yet caught up. If that gap persists, premium increments in these roles could accelerate further — or trigger a wave of lateral poaching that inflates numbers without adding net talent capacity.
NationPress
12 Aug 2026
Frequently Asked Questions
What is the projected salary increment in India for FY27?
India is projected to see average salary increments of 8.6% to 10.2% in FY2026–27, according to a TeamLease Services report. The range varies significantly by industry and role, with high-growth sectors such as EV, FinTech, and Healthcare leading at 9.6% to 10.2%.
Which industries will see the highest salary hikes in FY27?
EV and EV Infrastructure, FinTech, Healthcare and Pharmaceuticals, and Power and Energy are projected to lead salary growth in FY27, with increments in the 9.6% to 10.2% range. These sectors are benefiting from policy support, capital inflows, and demand for specialised talent.
Which job roles are getting the biggest salary increments?
Electrical Engineers top the projections at 11.2%, followed by Quality Control Inspectors at 10.9%, IT Support Executives at 10.3%, and Quality Assurance Engineers and Site Engineers at 10.2%. Project Engineers in the sustainable growth segment are projected at 10.7%.
Which cities are emerging as salary growth hubs in India?
Chennai, Pune, Hyderabad, and Ahmedabad have been identified as key salary growth hubs in FY27, according to the TeamLease report. This reflects a broader shift away from salary growth being concentrated in traditional metros like Mumbai and Bengaluru.
What is the salary outlook for Banking and Telecom in FY27?
Banking, Telecommunications, Construction and Real Estate, and Textiles fall under the gradual growth category, with projected increments of 8.6% to 8.8% in FY27. While lower than high-growth sectors, select roles within these industries — such as Relationship Executives — can still exceed 10%.
