Indian Salaries to Grow up to 10.2% in FY27; EV, Engineering Roles Lead: TeamLease Report

India’s labour market is expected to witness salary increments between 8.6% and 10.2% in FY 2026–27, driven by strong demand in electric vehicles (EVs), fintech, healthcare, engineering, and infrastructure sectors, according to TeamLease Services’ latest Jobs and Salaries Primer Report.

The report, based on insights from 1,268 businesses across 23 industries and 20 cities, highlights that while overall salary growth remains stable, compensation is becoming increasingly role-specific and skill-driven, with engineering-led functions emerging as the strongest growth drivers.

High-growth industries such as EV and EV infrastructure, fintech, healthcare and pharmaceuticals, and power and energy are expected to record increments between 9.6% and 10.2%.

At the role level, electrical engineers (11.2%), quality control inspectors (10.9%), and project engineers (10.7%) are among the highest gainers, reflecting sustained demand for execution-heavy technical roles.

According to the report, manufacturing, engineering, and infrastructure show the highest compensation variance at 11.4%, while sectors such as IT (4.9%) and fintech (4.8%) remain relatively stable, indicating maturity and standardisation in pay structures.

City-wise, Chennai (9.7%), Pune and Hyderabad (9.6% each), and Ahmedabad (9.5%) are expected to lead salary growth markets. Emerging hubs such as Visakhapatnam and Nagpur are also gaining momentum due to industrial expansion and manufacturing activity.

The report also notes that blue-collar and operational roles are witnessing steady growth, supported by infrastructure development and EV ecosystem expansion. Roles such as EV charger installation technicians (10.3%) and field service technicians (9.6%) continue to see rising demand.

Commenting on the findings, Balasubramanian A, Senior Vice President, TeamLease Services, said, “India’s salary landscape in FY 2026–27 is becoming more differentiated and execution-led. Increment trends are increasingly being shaped by sector-specific growth and specialised skills.”

He further noted that salary growth is no longer confined to metros, with emerging cities steadily strengthening their position in the talent economy.

The report highlights widening differences between permanent and temporary roles across sectors. Manufacturing, engineering, and infrastructure again show the highest variance, while IT and fintech remain among the most stable segments.

At the functional level, demand is strongest in engineering, sales and marketing, and IT, with roles such as associate software engineers (9.7%) and relationship executives (10.1%) reflecting steady hiring momentum across sectors.

Overall, the report concludes that India’s salary landscape is becoming increasingly segmented, skill-driven, and regionally distributed, as industries shift toward specialised, execution-led talent models.