India Inc to dole out salary hikes of up to 10.2% across industries in FY27: Report

New Delhi: Corporate India is likely to see salary increments in the range of 8.6 percent to 10.2 percent across industries this financial year, primarily driven by sustained demand for skilled and execution-focused talent, a report said on Tuesday.

TeamLease Services' report, Jobs and Salaries Primer 2026-27, projects average salary increments of 8.6 percent to 10.2 percent, mainly led by high growth sectors including EV and EV Infrastructure, FinTech, Healthcare and Pharmaceuticals.

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"India's salary landscape in 2026-27 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.

"Emerging cities are steadily strengthening their position in the talent economy, supported by industrial expansion, enterprise investments, and evolving business ecosystems," TeamLease Services Senior Vice President Balasubramanian A said.

The high-growth industries led by EV and EV Infrastructure are expected to register salary increments in the range of 9.6 percent to 10.2 percent, the report based on inputs from 1,268 businesses across 23 industries and 20 cities said.

Salary increments for Electrical Engineers are projected at 11.2 percent, Quality Control Inspectors at 10.9 percent, IT Support Executives at 10.3 percent, and both Quality Assurance Engineers and Site Engineers at 10.2 percent.

Meanwhile, industries under the sustainable growth category, including Automotive, Retail, Insurance, and BPO, are expected to follow with increments between 8.9 percent and 9.5 percent.

While overall growth remains moderate, select roles continue to push beyond this band, led by Project Engineers at 10.7 percent, and EHS Officers, IT Support Executives, and Relationship Executives at 10.1 percent.

A more measured compensation trend is visible across gradual growth industries such as Banking, Construction and Real Estate, Telecommunications, and Textiles, where increments are projected between 8.6 percent and 8.8 percent.

Even within this conservative range, certain roles stand out, including Site Engineers at 9.8 percent, Telecallers at 9.7 percent, and IT Support Executives, along with Financial Reconciliation Analysts at 9.5 percent each.

According to the report across functional areas, growth momentum is most visible in Sales and Marketing, Engineering, and IT.

In IT, Associate Software Engineers are projected to grow at 9.7 percent, while IT Support Executives continue to see steady demand across Information Technology, Healthcare, and Pharmaceuticals, reinforcing the importance of foundational digital roles in enterprise transformation.

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At the city level, Chennai at 9.7 percent, Pune and Hyderabad at 9.6 percent each, and Ahmedabad at 9.5 percent are set to lead salary increment markets in FY27.

Emerging cities, such as Visakhapatnam at 9.5 percent and Nagpur at 9.4 percent, are also gaining traction, supported by manufacturing expansion and industrial corridor development.

In contrast, cities including Surat at 8.4 percent (down from 8.9 percent), Chandigarh at 8.5 percent (down from 9.9 percent), and Lucknow at 8.7 percent (down from 9.1 percent) are witnessing lower levels of growth compared to the previous year, added the report.

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