Jobs and Salaries Report 2026-27: High salaries now available in smaller cities; report reveals
Jobs and Salaries Report 2026-27: According to a new report, better job opportunities are emerging in Tier-2 cities due to increased corporate investment, the expansion of the manufacturing sector, and the development of new industrial corridors.
Jobs and Salaries Report 2026-27: Relocating to major cities like Delhi, Mumbai, or Bengaluru is no longer the only way to secure a good job and a high salary. Many smaller cities across the country are rapidly gaining ground in terms of employment and remuneration. The new report highlights that Tier-2 cities are seeing improved job prospects driven by rising corporate investment, manufacturing sector expansion, and the creation of new industrial corridors. Consequently, the rate of salary growth in these cities is now outpacing that of many major metropolitan areas.
Rapid salary growth in smaller cities
According to TeamLease’s 'Jobs and Salaries Primer 2026-27' report, high salaries are no longer exclusive to the IT sector or metropolitan cities. Tier-2 cities such as Ahmedabad, Nagpur, Indore, Jaipur, and Visakhapatnam are giving stiff competition to major hubs like Delhi, Mumbai, and Bengaluru regarding salary increments. The report indicates that the expansion of the manufacturing sector, the development of industrial corridors, and increased corporate investment in these cities are directly impacting jobs and salaries.
Projected salary growth by city
According to the report, several Tier-2 cities are poised to surpass major metropolitan areas in salary growth during the 2026-27 fiscal year. Ahmedabad is projected to see the highest salary growth at 9.7%, followed by Nagpur, Visakhapatnam, and Indore at 9.5%, and Jaipur at 9.3%. In contrast, projected salary growth in metro cities stands at 9.4% for Bengaluru, 9.2% for Delhi, and 9.0% for Mumbai. The report indicates that smaller cities are rapidly gaining ground in terms of employment and better salaries, posing stiff competition to many major cities.
Why are salaries rising in smaller cities?
According to the report, the IT sector was previously considered the primary driver of salary growth, but this trend is shifting. Manufacturing companies are expanding rapidly across many of the country's smaller cities. Concurrently, industrial corridors are being developed, and companies are consistently increasing their investments. As a result, new employment opportunities are emerging across various sectors in these cities, leading to better salaries for employees.
Bengaluru still leads in the IT sector
When it comes to the IT sector, Bengaluru remains at the forefront. The report projects an overall average salary increase of 9.4% in Bengaluru, with growth in the IT sector alone potentially reaching 12.7%. Additionally, salary increases of 11.7% in Hyderabad and 11.5% in Pune are projected.
The salary gap between employees has also narrowed.
The report also highlights that the salary disparity between permanent employees and those on contract or temporary assignments is narrowing compared to the past. Meanwhile, significant salary growth is being observed across several sectors, including manufacturing, engineering, infrastructure, banking, hospitality, fintech, and power.
