India Inc Salary Hikes to Narrow in FY27, EV and Fintech Lead the Pack

Salary increments across industries are expected to range between 8.6% and 10.2% in 2026–27 (FY27), narrowing from the 6.2–11.3% range recorded in 2025–26 (FY26), according to the Jobs and Salaries Primer 2026–27 report released by TeamLease Services on Tuesday.

The electric vehicles (EV) and EV infrastructure sector is projected to remain the highest-paying industry, with salary growth of 10.2% in FY27, though lower than the 11.3% recorded a year ago.

"While salary increments are moderating compared to last year, not all functions are moving at the same pace. In FY27, the gap between high-impact and support functions is becoming more visible, with pay growth increasingly aligned to business-critical priorities," the report observed.

Sector-Wise Breakdown

Financial technology (fintech) is expected to record salary growth of 10% in FY27, while healthcare and pharmaceuticals, and power and energy are projected to offer increments of 9.7% and 9.6%, respectively.

"These industries — EV and EV infrastructure, fintech, healthcare and pharma, and power and energy — continue to command the strongest salary growth, driven by capital intensity, regulatory momentum, digital adoption, and the long arc of the energy transition," the report said.

At the lower end, textiles are expected to post salary increments of 8.6%, followed by construction and real estate at 8.7%, and banking and telecommunications at 8.8% each.

Not all sectors are seeing a slowdown, however. Educational services are projected to see salary growth rise sharply to 9% from 6.2% a year ago, making it among the strongest year-on-year gainers. The business process outsourcing sector is expected to improve to 9% from 6.7%, while banking is projected to edge up to 8.8% from 8.1%, amid growing demand for digital banking, cybersecurity, and technology-led operations.

Across functions, engineering and IT continue to attract the highest salary hikes, with projected increments of 9.9% and 9.8%, respectively. Sales and marketing roles are expected to see 9.7% salary growth, supported by demand from organised retail, quick commerce, and direct-to-consumer businesses. Finance is projected at 9.5%, while human resources and customer service functions are expected to record increments of 9% and 8.9%, respectively.

At the role level, electrical engineers are expected to receive the highest salary hikes at 11.2%, followed by project engineers at 10.7%. IT support executives, system administrators, quality assurance engineers, and site engineers are also projected to see double-digit salary growth, the report said.

Chennai is projected to lead salary growth among cities with increments of 9.7%, followed by Pune and Hyderabad at 9.6% each, and Ahmedabad at 9.5%. While metro cities continue to dominate, non-metro centres such as Ahmedabad, Visakhapatnam, Nagpur, and Jaipur are becoming increasingly competitive, driven by manufacturing expansion, industrial corridor development, and rising enterprise investment, the report said.

"India's salary landscape in FY27 is becoming more differentiated and execution-led. Increment trends are increasingly being shaped by sector-specific growth and specialised skills. Compensation growth is no longer concentrated only in traditional metro markets. Emerging cities are steadily strengthening their position in the talent economy," said Balasubramanian A, Senior Vice-President at TeamLease Services.