EVs, Retail, and Tech to Push Salary Growth in FY26: TeamLease Report

India is expected to see strong salary increases in the financial year 2025-26, led by sectors like Electric Vehicles (EVs), Consumer Durables, and Retail. This is according to TeamLease Services’ new “Jobs and Salaries Primer” report.

The study looked at 1,308 companies across 23 industries and 20 cities. It found that the EV and EV Infrastructure sector is likely to see the highest average salary increase of 11.3%. Next in line are Consumer Durables and Retail, both with expected hikes of 10.7%. Non-Banking Financial Companies (NBFCs) are also expected to do well, with a 10.4% increase. The boost in salaries is mainly due to high demand for technical and frontline workers.

Other Sectors and City-Wise Trends

Other industries like Construction, Automotive, Travel & Hospitality, FinTech, and Healthcare are expected to give salary hikes between 8.1% and 9.5%. However, some areas like Manufacturing, Media, BPO, and Education will likely offer smaller raises, between 6.2% and 7.9%.

Among Indian cities, Pune is expected to offer the highest average raise of 10.4%, thanks to its strong presence of EV, Auto, and Consumer Durable businesses. Mumbai, Hyderabad, Bengaluru, and Gurgaon also show strong numbers, all expecting average salary growth above 10%.

Key Job Roles and Changing Pay Trends

Among job functions, Sales & Marketing roles may get the biggest raises with a 9.9% increase, followed by Engineering at 9.5%. IT jobs are also seeing good growth with 9.2%, showing the continued push for digital tools in many industries. The report also notes that the pay gap between permanent and temporary workers is shrinking in sectors like Insurance, Banking, and Retail. Kartik Narayan, CEO of Staffing at TeamLease Services, said, “As fast-growing industries expand, more jobs now require both technical skills and business impact. Even traditional jobs like mechanics or material handlers are seeing big pay jumps. This is a sign for employers to adjust their hiring, and for workers to gain new skills.”

The report shows that India’s labor market is changing, with digital and infrastructure roles now leading pay trends. “Jobs once seen as support roles are now helping drive business growth,” it added. With the economy staying strong and key industries focusing on skilled talent, FY26 could be a great year for job seekers, especially in growing cities and new-age sectors.