Salary hikes: How much increment can you expect this year? Here’s what a new report suggests
Indian businesses are projected to offer average salary increases between 6.2 per cent and 11.3 per cent this financial year, as companies adapt their workforce approaches with enhanced focus on skill certifications and performance-based engagement, according to a report released on Tuesday.The TeamLease Services – Jobs and Salaries Primer 2025-26 report, cited by news agency PTI, indicates that while average salary increases will range from 6.2 per cent to 11.3 per cent across sectors, certain role-specific increments could reach 13.8 per cent.“The projected salary growth, ranging from 6.2 per cent to 11.3 per cent, signals a broader realignment in India’s job and wage landscape. As new-age industries scale rapidly, demand is shifting toward roles that combine technical capability with immediate business impact,” TeamLease Services CEO – Staffing, Kartik Narayan said.The analysis, incorporating data from 1,308 organisations across 23 industries and 20 cities, reveals highest salary growth expectations in EV and EV infrastructure (11.3 per cent), consumer durables (10.7 per cent), retail (10.7 per cent), and NBFCs (10.4 per cent).Leading positions with maximum salary increases include Electrical Design Engineer (12.4 per cent) in EV & EV Infrastructure, In-Store Demonstrator (12.2 per cent) in Consumer Durables, Relationship Executive (11.6 per cent) in NBFC, and Fashion Assistant (11.2 per cent) in Retail.The study identifies significant improvements in blue-collar compensation, driven by increased infrastructure investments, expanding EV sector, and recovery in real estate and manufacturing.Notable growth in blue-collar salaries includes mechanic (10.4 per cent), material handler (10 per cent), machine operator (9.9 per cent), and electrician (9.3 per cent).“In the upward momentum in blue-collar wages even the traditionally stable roles like mechanic and material handler are seeing double-digit hikes. We see this shift as a critical signal for employers to align hiring with new growth engines, and for job seekers to upskill toward relevance and resilience,” Narayan said.Companies are revising their workforce strategies, emphasising skill certification, retention, and incentive-based engagement amidst growing competition for skilled operational workers.Specific roles in various cities show remarkable salary increases: Quality Control Inspector (13.8 per cent) in Pune, MIS Executive (13.4 per cent) in Hyderabad, Data Engineer (12.9 per cent) in Bengaluru, Electrical Design Engineer (12.6 per cent) in Mumbai and Sales Executive (12.4 per cent) in Gurgaon.Sales and marketing roles lead functional areas with projected average salary increases of 9.9 per cent, followed by engineering at 9.5 per cent.Other essential functions including finance, customer service and back office, blue collar, and HR and admin anticipate moderate increases between 8.2 per cent and 8.6 per cent, suggesting balanced growth across crucial business areas.
