What Salary Increases Can Employees Expect in 2026-27? Insights from TeamLease Report

A new report from TeamLease Services reveals that salary increases in India for the financial year 2026-27 are expected to range from 8.6% to 10.2%. This growth is driven by demand in high-growth sectors like Electric Vehicles, FinTech, and Healthcare. Notably, Electrical Engineers may see the highest increments at 11.2%. Emerging cities are also gaining traction in the talent economy, while traditional metro markets are evolving. Discover more insights on salary trends and projections across various industries in this comprehensive overview.

By Ambika Singh Jun 9, 2026, 15:45 IST

Projected Salary Increases Across Industries

Mumbai: A recent report indicates that salary hikes in Corporate India are anticipated to range from 8.6% to 10.2% this financial year, largely fueled by a persistent demand for skilled professionals and execution-oriented talent.

According to TeamLease Services' report titled 'Jobs and Salaries Primer 2026-27', the average salary increments are projected between 8.6% and 10.2%, primarily driven by rapidly growing sectors such as Electric Vehicles (EV) and EV Infrastructure, FinTech, Healthcare, and Pharmaceuticals.

"The salary landscape in India for 2026-27 is evolving to become more specialized and execution-focused. Increment trends are increasingly influenced by growth in specific sectors and the demand for specialized skills. Furthermore, compensation growth is no longer limited to traditional metropolitan areas," stated Balasubramanian A, Senior Vice President at TeamLease Services.

High-growth sectors, particularly EV and EV Infrastructure, are expected to see salary increases between 9.6% and 10.2%, based on data collected from 1,268 businesses across 23 industries and 20 cities.

Specific roles are projected to experience notable salary increments, with Electrical Engineers seeing an increase of 11.2%, Quality Control Inspectors at 10.9%, IT Support Executives at 10.3%, and both Quality Assurance Engineers and Site Engineers at 10.2%.

Industries categorized under sustainable growth, such as Automotive, Retail, Insurance, and BPO, are expected to follow with increments ranging from 8.9% to 9.5%.

While overall growth remains moderate, certain positions are expected to exceed this range, including Project Engineers at 10.7%, and EHS Officers, IT Support Executives, and Relationship Executives at 10.1%.

A more conservative growth trend is evident in gradually expanding industries like Banking, Construction, Telecommunications, and Textiles, where increments are projected between 8.6% and 8.8%.

Within this cautious range, standout roles include Site Engineers at 9.8%, Telecallers at 9.7%, and IT Support Executives and Financial Reconciliation Analysts at 9.5% each.

The report highlights that growth momentum is particularly strong in Sales and Marketing, Engineering, and IT sectors.

In the IT sector, Associate Software Engineers are expected to see a growth of 9.7%, while IT Support Executives continue to be in high demand across Information Technology, Healthcare, and Pharmaceuticals, underscoring the significance of foundational digital roles in enterprise transformation.

At the city level, Chennai is projected to lead with a 9.7% salary increment, followed closely by Pune and Hyderabad at 9.6% each, and Ahmedabad at 9.5%.

Emerging cities like Visakhapatnam at 9.5% and Nagpur at 9.4% are also gaining ground, bolstered by manufacturing growth and industrial corridor developments.

Conversely, cities such as Surat at 8.4% (down from 8.9%), Chandigarh at 8.5% (down from 9.9%), and Lucknow at 8.7% (down from 9.1%) are experiencing slower growth compared to the previous year.