Salary Increases Projected to Moderate in FY27 with EV Sector Leading Pay Growth
Salary hikes to moderate in FY27; EV sector remains top-paying industry

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Salary increments for FY27 are expected to range from 8.6% to 10.2%, a decrease from FY26. The electric vehicles sector will continue to be the highest-paying industry, while educational services and BPO sectors are projected to see notable increases in pay.
- 01Salary growth in the electric vehicles sector is projected at 10.2%, down from 11.3% in FY26.
- 02Consumer durables' salary increments are expected to slow to 9%, while non-banking financial companies will see 8.9% growth.
- 03Educational services are set to rise sharply to 9%, up from 6.2% last year.
- 04Engineering and IT roles are projected to receive the highest increments of 9.9% and 9.8%, respectively.
- 05Chennai is expected to lead salary growth among cities at 9.7%.
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According to a report by TeamLease Services, salary increments across various industries for the financial year 2026-27 (FY27) are expected to range between 8.6% and 10.2%, a decline from the previous year's 6.2% to 11.3% range. The electric vehicles (EV) sector remains the highest-paying industry, with a projected salary growth of 10.2%, though this is lower than the 11.3% recorded in FY26. Other sectors like consumer durables and non-banking financial companies are also experiencing slowdowns, with expected increments of 9% and 8.9%, respectively. Notably, educational services are anticipated to see a significant increase to 9%, up from 6.2% last year. Engineering and IT roles are expected to attract the highest salary hikes at 9.9% and 9.8%. Chennai is projected to lead among cities with a 9.7% salary growth, followed closely by Pune and Hyderabad at 9.6% each. The report highlights a growing differentiation in salary trends, influenced by sector-specific growth and specialized skills, as non-metro cities become increasingly competitive in the talent economy.
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The moderation in salary increments may affect consumer spending and job market dynamics across various sectors.
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