Chennai is expected to lead India’s salary increment chart in FY27, ahead of established technology hubs such as Hyderabad and Bengaluru, as compensation growth increasingly spreads beyond traditional
metro markets.
According to TeamLease Services’ Jobs and Salaries Primer 2026-27, employees in Chennai are likely to receive average salary hikes of 9.7% this financial year. Pune and Hyderabad follow closely at 9.6% each, while Ahmedabad and Visakhapatnam are projected to record increments of 9.5%. Nagpur is also emerging as a fast-growing salary market with expected hikes of 9.4%.
The report suggests that India’s compensation landscape is becoming more diversified, with emerging cities gaining prominence due to industrial expansion, enterprise investments and evolving business ecosystems.
| Rank | City | Expected Average Salary Hike in FY27 |
|---|---|---|
| 1 | Chennai | 9.7% |
| 2 | Pune | 9.6% |
| 2 | Hyderabad | 9.6% |
| 4 | Ahmedabad | 9.5% |
| 4 | Visakhapatnam | 9.5% |
| 6 | Nagpur | 9.4% |
| 7 | Lucknow | 8.7% |
| 8 | Chandigarh | 8.5% |
| 9 | Surat | 8.4% |
“Increment trends are increasingly being shaped by sector-specific growth and specialised skills. At the same time, compensation growth is no longer concentrated only in traditional metro markets,” TeamLease Services Senior Vice President Balasubramanian A said.
Average Salary Hikes To Range Between 8.6% And 10.2%
Overall, corporate India is expected to see salary increments ranging between 8.6% and 10.2% in FY27, driven largely by demand for skilled and execution-focused talent.
The strongest salary growth is expected in high-growth sectors such as electric vehicles (EVs) and EV infrastructure, fintech, healthcare and pharmaceuticals, where increments could range from 9.6% to 10.2%.
Among individual roles, Electrical Engineers are projected to receive the highest salary hikes at 11.2%, followed by Quality Control Inspectors at 10.9%, IT Support Executives at 10.3%, and Quality Assurance Engineers and Site Engineers at 10.2% each.
EV, FinTech And Healthcare Sectors Lead The Pack
Industries categorised under sustainable growth — including automotive, retail, insurance and business process outsourcing (BPO) — are expected to see salary increments between 8.9% and 9.5%. Project Engineers could receive hikes of 10.7%, while EHS Officers, IT Support Executives and Relationship Executives may see increments of around 10.1%.
More moderate growth is projected across banking, construction and real estate, telecommunications and textiles, where salary hikes are expected to range between 8.6% and 8.8%. However, some roles continue to outperform sector averages, including Site Engineers (9.8%), Telecallers (9.7%), and IT Support Executives and Financial Reconciliation Analysts (9.5% each).
Across functions, sales and marketing, engineering and information technology are expected to remain key drivers of compensation growth. Associate Software Engineers, for instance, are projected to receive average salary hikes of 9.7%.
Surat, Chandigarh And Lucknow See Slower Growth
The report, based on inputs from 1,268 businesses across 23 industries and 20 cities, also identified a few markets where salary growth is slowing. Surat is projected to record average hikes of 8.4%, down from 8.9% a year earlier, while Chandigarh is expected to fall to 8.5% from 9.9% and Lucknow to 8.7% from 9.1%.
