India FY27 Salary Increment Forecast

A report by TeamLease Services, 'Jobs and Salaries Primer 2026-27', projects salary increments in India to range from 8.6 percent to 10.2 percent across industries for the financial year 2026-27. This growth is primarily driven by sustained demand for skilled and execution-focused talent. High-growth sectors such as EV and EV Infrastructure, FinTech, Healthcare and Pharmaceuticals, and Power and Energy are expected to lead with increments between 9.6 percent and 10.2 percent. Specific roles like Electrical Engineers (11.2 percent) and Quality Control Inspectors (10.9 percent) are projected to receive the highest hikes. Sustainable growth industries like Automotive, Retail, Insurance, and BPO are expected to see increments between 8.9 percent and 9.5 percent, while gradual growth sectors such as Banking, Construction and Real Estate, Telecommunications, and Textiles are projected for 8.6 percent to 8.8 percent. At the city level, India — Chennai (9.7 percent), India — Pune (9.6 percent), and India — Hyderabad (9.6 percent) are set to lead, with emerging cities like India — Visakhapatnam and India — Nagpur also gaining traction. Conversely, cities like India — Surat, India — Chandigarh, and India — Lucknow are expected to see lower growth compared to the previous year. A. Balasubramanian of TeamLease Services noted that the salary landscape is becoming more differentiated and execution-led, with compensation growth expanding beyond traditional metro markets.