Will there be a hefty salary hike this year? Sector-wise projections from the TeamLease report

Private Job Salary Hike: Good times ahead for private sector employees! According to a recent TeamLease report, company salaries could rise by up to 10% this year. Engineers and the fintech sector are set for a windfall; check the outlook for your city and sector.

Private Job Salary Hike: While government employees eagerly await the 8th Pay Commission, those in the private sector are keeping a close watch on this year's appraisals and increments. Although increments for the 2025-26 fiscal year have already started reaching employees' accounts, the big question now is: how much will salaries rise in the new fiscal year, 2026-27 (FY27)?

According to the latest report, 'Jobs and Salaries Primer 2026-27,' by HR firm TeamLease Services, Indian companies are set to reward their employees generously this year. The report projects an average salary increment ranging from 8.6% to 10.2% across various sectors. The primary driver behind this is the massive demand for skilled talent in the market.

How much will your salary increase, sector-wise?

TeamLease has categorized the country's job market and sectors into three main groups based on their growth trajectories.

High-Growth Sectors (Average increment: 9.6% to 10.2%)

Leading this list are the Electric Vehicle (EV), FinTech, Healthcare, and Pharmaceutical sectors.

Electrical Engineers: Could see a massive hike of up to 11.2% this year.

Quality Control Inspectors: Their salaries could witness a significant jump of 10.9%. IT Support Executives: May see 10.3% growth.

Site Engineers: Salaries could rise by up to 10.2%.

Sectors with sustainable growth (Average increment: 8.9% to 9.5%)

This category includes automotive, retail, insurance, and BPO sectors.

Project Engineers: May receive an impressive average increment of 10.7%.

EHS Officers and Relationship Executives: Salaries could increase by up to 10.1%.

Sectors with moderate growth (Average increment: 8.6% to 8.8%)

Companies in banking, construction, real estate, telecom, and textiles are likely to be somewhat cautious with salary hikes this year. Nevertheless, specific roles will still see good increments.

Site Engineers: 9.8% increase.

Telecallers: 9.7% hike.

Financial Analysts: 9.5% increment.

Cities offering the highest increments

According to TeamLease Services, the trend of salary growth is no longer limited to super-metro cities like Delhi and Mumbai; other cities are taking the lead this time.

Chennai (9.7%) leads the pack in terms of salary increments this year. It is closely followed by Pune and Hyderabad (9.6%) and Ahmedabad (9.5%).
Due to their emergence as new manufacturing hubs, Visakhapatnam (9.5%) and Nagpur (9.4%) are likely to see significant average salary hikes.
Compared to last year, the pace of salary growth is expected to be slightly slower in Surat (8.4%), Chandigarh (8.5%), and Lucknow (8.7%).

The increment breakdown: At a glance