EV, FinTech, Healthcare and Engineering Roles Expected to Lead Pay Hikes; Emerging Cities Gain Ground in India's Talent Economy
Corporate India's workforce is likely to receive healthy salary increments in FY27, with annual pay hikes projected between 8.6 per cent and 10.2 per cent across industries, according to a new report by TeamLease Services. The report suggests that despite global economic uncertainties and cost pressures, companies continue to invest in skilled talent as they pursue growth, digital transformation, and expansion initiatives.
The findings indicate that India's employment market remains resilient, with organizations increasingly competing for specialized professionals in sectors such as electric vehicles, financial technology, healthcare, pharmaceuticals, and engineering.
As industries evolve and technology reshapes business models, compensation growth is becoming more closely tied to skill availability, industry performance, and execution capabilities than ever before.
High-Growth Industries Expected to Offer Highest Salary Increments
The report identifies Electric Vehicles (EV) and EV Infrastructure as the fastest-growing sectors in terms of compensation growth.
Employees in these industries are expected to receive salary hikes ranging between 9.6 per cent and 10.2 per cent during FY27. Strong government support, increasing investments in clean mobility, charging infrastructure expansion, and rising consumer adoption are fueling demand for skilled professionals across the EV ecosystem.
FinTech, Healthcare, Pharmaceuticals, and advanced manufacturing sectors are also expected to witness above-average salary growth as organizations compete for talent capable of driving innovation and operational efficiency.
Industry experts believe these sectors will continue to generate significant employment opportunities over the next several years as India strengthens its position in emerging industries.
Talent Shortage Driving Compensation Growth
One of the key drivers behind rising salary increments is the growing shortage of specialized talent.
Companies are increasingly seeking professionals with expertise in digital technologies, automation, engineering, quality management, project execution, and customer-facing functions. As a result, employers are willing to offer higher compensation packages to attract and retain skilled workers.
The report notes that salary growth is becoming more differentiated across industries and job functions, with compensation increasingly linked to specialized capabilities rather than standard annual increments.
This trend reflects a maturing labor market where skills and productivity are becoming critical determinants of earning potential.
Engineering Professionals Among Top Beneficiaries
Engineering-related roles are expected to witness some of the strongest salary growth during FY27.
Electrical Engineers are projected to receive salary increments of approximately 11.2 per cent, making them among the most sought-after professionals in the market. The increasing demand for electrification, industrial automation, renewable energy projects, and EV manufacturing continues to drive hiring activity.
Quality Control Inspectors are expected to receive salary hikes of around 10.9 per cent, while IT Support Executives could see increments of 10.3 per cent.
Quality Assurance Engineers and Site Engineers are also projected to receive salary growth exceeding 10 per cent, reflecting the importance of operational excellence and project execution across industries.
Automotive, Retail and Insurance Sectors Maintain Momentum
Industries categorized under the sustainable growth segment are also expected to offer healthy compensation increases.
The Automotive, Retail, Insurance, and Business Process Outsourcing (BPO) sectors are projected to register salary hikes between 8.9 per cent and 9.5 per cent.
As consumer spending improves and businesses continue investing in digital capabilities, these sectors are expected to maintain steady hiring momentum.
Within these industries, Project Engineers are projected to receive salary hikes of around 10.7 per cent, while Environment, Health and Safety (EHS) Officers, Relationship Executives, and IT Support professionals are expected to see compensation growth above 10 per cent.
Banking and Real Estate Witness Moderate Growth
The report indicates that industries such as Banking, Construction, Real Estate, Telecommunications, and Textiles are likely to witness comparatively moderate salary growth, with increments projected between 8.6 per cent and 8.8 per cent.
However, even within these sectors, specific job profiles continue to command strong compensation increases due to skill shortages and business requirements.
Site Engineers are expected to receive salary hikes of nearly 9.8 per cent, while Telecallers may see increments of approximately 9.7 per cent. Financial Reconciliation Analysts and IT Support Executives are projected to receive salary growth of around 9.5 per cent.
This suggests that specialized roles continue to outperform broader industry averages.
Sales, Marketing and IT Continue to Dominate Hiring
The report highlights Sales and Marketing, Engineering, and Information Technology as the most dynamic functional areas for salary growth.
Businesses across sectors continue to invest heavily in customer acquisition, digital transformation, technology infrastructure, and operational optimization. This has created strong demand for professionals capable of supporting business expansion and innovation.
Within the IT sector, Associate Software Engineers are expected to receive salary hikes of approximately 9.7 per cent. Meanwhile, IT Support Executives remain among the most in-demand professionals due to the increasing digitization of business operations.
As companies adopt artificial intelligence, cloud computing, cybersecurity solutions, and automation technologies, technology talent is expected to remain highly valuable.
Emerging Cities Challenge Traditional Talent Hubs
One of the most significant findings of the report is the growing importance of emerging cities in India's talent ecosystem.
Traditionally, metropolitan centers such as Mumbai, Bengaluru, Delhi-NCR, and Chennai dominated hiring activity and compensation growth. However, increasing industrial investments, infrastructure development, and business expansion are creating new opportunities in Tier-2 cities.
Among major cities, Chennai is projected to lead salary increments with growth of 9.7 per cent, followed by Pune and Hyderabad at 9.6 per cent each. Ahmedabad is expected to record salary growth of 9.5 per cent, highlighting its emergence as a significant employment hub.
The report also points to growing opportunities in cities such as Visakhapatnam and Nagpur, both of which are benefiting from industrial corridor development, manufacturing investments, and improved infrastructure.
Ahmedabad Emerges as a Key Growth Market
Ahmedabad's projected salary increment rate of 9.5 per cent places it among the top-performing cities in India.
The city's growing manufacturing base, expanding industrial parks, infrastructure projects, and increasing corporate presence have strengthened its position as a talent destination. Sectors such as pharmaceuticals, chemicals, engineering, financial services, and technology continue to drive employment growth in the region.
For professionals and job seekers, Ahmedabad's combination of competitive salary growth and relatively lower cost of living compared to major metros offers an attractive value proposition.
Some Cities Witness Slower Growth
While several cities are experiencing strong salary growth, others are witnessing moderation.
The report notes that Surat, Chandigarh, and Lucknow are expected to record lower salary increment levels compared to the previous year. This slowdown may reflect changing industry dynamics, sector-specific challenges, and evolving business investment patterns.
However, overall compensation growth remains positive across most regions, underscoring the resilience of India's employment market.
Outlook for FY27
The outlook for FY27 suggests that India's labor market will remain highly competitive, particularly in sectors undergoing rapid transformation and expansion.
Organizations are expected to continue investing in talent acquisition and retention strategies, while employees with specialized skills are likely to enjoy stronger bargaining power and career opportunities.
As industries embrace technology, sustainability, automation, and innovation, compensation growth will increasingly reward professionals who possess future-ready skills and the ability to drive business outcomes.
For job seekers and working professionals, the message is clear: upskilling, specialization, and adaptability will be the key factors determining career growth and earning potential in the evolving employment landscape of FY27.