India is anticipated to experience average salary increases ranging from 8.6% to 10.2% in the fiscal year 2026-27, driven by a demand for skilled and execution-focused talent, as per a recent report. The report by TeamLease Services indicates a stable salary outlook across various industries, with high-growth sectors like EV and EV Infrastructure, FinTech, Healthcare, Pharmaceuticals, Power, and Energy expected to witness increments between 9.6% and 10.2%.
The salary growth trend extends to specific roles, with projections of 11.2% for Electrical Engineers, 10.9% for Quality Control Inspectors, 10.3% for IT Support Executives, and 10.2% for Quality Assurance Engineers and Site Engineers. The report, based on inputs from 1,268 businesses in 23 industries and 20 cities, also identifies Chennai, Pune, Hyderabad, and Ahmedabad as key hubs for salary growth in India’s evolving job market.
Industries categorized under sustainable growth, including Automotive, Retail, Insurance, and BPO, are expected to witness increments ranging from 8.9% to 9.5%. Despite overall moderate growth, certain roles are projected to exceed this range, such as Project Engineers at 10.7%, and EHS Officers, IT Support Executives, and Relationship Executives at 10.1%.
Balasubramanian A, Senior Vice President at TeamLease Services, noted that India’s salary landscape is evolving to be more execution-focused and diverse, influenced by sector-specific growth and specialized skills. He highlighted the increasing compensation growth not only in traditional metro areas but also in emerging cities, which are strengthening their position in the talent economy.
The employment market is showing a more balanced and distributed trend across industries and regions, with gradual growth sectors like Banking, Construction, Real Estate, Telecommunications, and Textiles projected to have increments between 8.6% and 8.8%. The report also points out that growth momentum is particularly noticeable in Sales and Marketing, Engineering, and IT domains, indicating a labor market shaped by role-specific variations and sector-driven compensation changes.
