EVs, Retail, and Consumer Durables to Lead India’s Salary Hikes in FY26: Report

India’s job market is gearing up for notable salary hikes in FY 2025–26, with the Electric Vehicle (EV), Consumer Durables, and Retail sectors expected to take the lead, according to TeamLease Services’ latest “Jobs and Salaries Primer” report.

Based on inputs from 1,308 companies across 23 industries and 20 cities, the report shows that the EV and EV Infrastructure sector is projected to offer the highest average salary increase at 11.3%.
Close behind are the Consumer Durables and Retail sectors, each with an expected hike of 10.7%. Non-Banking Financial Companies (NBFCs) are also among the top payers, with projected salary growth of 10.4%.The surge is being driven by rising demand for skilled talent in both technical and frontline roles.

Other sectors such as Automotive, Travel & Hospitality, FinTech, Healthcare, and Construction are expected to see pay hikes ranging between 8.1% and 9.5%.

On the lower end, sectors like Manufacturing, Media, BPO, and Educational Services are likely to offer more modest increments—between 6.2% and 7.9%.

City-Wise Trends

Pune stands out with the highest average salary growth of 10.4%, thanks to its strong base of EV, Automotive, and Consumer Durables companies. Other metro hubs like Mumbai, Bengaluru, Hyderabad, and Gurgaon are also set to offer salary hikes of over 10%, the report noted.

Functional Trends

When it comes to job functions, Sales & Marketing roles are expected to see the highest average raise at 9.9%, followed by Engineering (9.5%) and IT (9.2%) roles. The steady rise in IT salaries reflects the ongoing digital push across industries.

Also Read: Record Salary Hikes for E-commerce Sector Employees, Followed by Auto, Pharma in India 2025: Report | Republic World

Permanent vs Temporary roles

An interesting trend highlighted in the report is the narrowing salary gap between permanent and temporary roles—especially in Insurance, Banking, and Retail. Temporary roles are increasingly being rewarded at par with permanent positions in several growth sectors.

What it means for employers and job seekers

Commenting on the findings, Kartik Narayan, CEO–Staffing at TeamLease Services, said, “With fast-growing sectors looking for talent that delivers business impact quickly, demand is shifting toward roles that blend technical skills with agility. Even blue-collar roles like mechanics and material handlers are seeing double-digit hikes—pointing to a wider transformation in the workforce.”

The report underlines how India’s evolving economic landscape is changing the compensation playbook. Core infrastructure and digital-first sectors are now shaping salary trends, as support roles increasingly take center stage in driving business growth, as per the report by TeamLease Services.

With strong macroeconomic fundamentals and a focus on skilled hiring, FY26 is shaping up to be a promising year for job seekers—especially those eyeing high-growth industries and innovation-driven cities.