Salary hikes are here: Why electrical engineers and Chennai employees are having a moment

If you're an electrical engineer, FY27 could be a good year. 

According to TeamLease Services' latest Jobs and Salaries Primer FY 2026-27, professionals in engineering-led roles are expected to see some of the highest salary growth in the country. Electrical engineers are projected to receive salary increments of 11.2%, followed by quality control inspectors at 10.9% and project engineers at 10.7%. 

The report, based on inputs from 1,268 businesses across 23 industries and 20 cities, projects overall salary growth of 8.6% to 10.2% across industries, with EV and EV Infrastructure, FinTech, Healthcare and Pharmaceuticals, and Power and Energy leading the charge. 

At the city level, Chennai is expected to lead the salary race with projected increments of 9.7%, followed by Pune and Hyderabad at 9.6% each, while Ahmedabad and Visakhapatnam are close behind at 9.5%.  Nagpur at 9.4% are also gaining traction supported by manufacturing expansion and industrial corridor development. In contrast, cities including Surat at 8.4% (down from 8.9%), Chandigarh at 8.5% (down from 9.9%), and Lucknow at 8.7% (down from 9.1%) are witnessing lower levels of growth compared to the previous year. 

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Commenting on the findings, Balasubramanian A, Senior Vice President, TeamLease Services, said India's salary landscape in FY 2026-27 is becoming more differentiated and execution led. “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. Emerging cities are steadily strengthening their position in the talent economy, supported by industrial expansion, enterprise investments, and evolving business ecosystems." 

But amid optimism, a question continues to trouble employees: Do salary hikes really translate into a better quality of life? 

Speaking to Business Today, Balasubramanian said that employees often experience inflation very differently from headline economic data. 

"The biggest pressure points for the middle class are housing, healthcare and education. These costs often rise much faster than overall inflation. As a result, even when salaries increase, many employees may not feel significantly better off financially," he said. 

Why freshers are struggling to command higher salaries 

The report highlights a growing trend that is reshaping India's labour market: employers are increasingly rewarding specialised skills over generic qualifications. 

Balasubramanian believes this also explains why entry-level salaries in several sectors have remained relatively stagnant despite continued discussions about talent shortages. 

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"It is not just about employment. It is about employability," he said, pointing out that companies spend significant resources training fresh graduates during their first year of employment. 

According to him, internships and practical exposure should be viewed as an essential part of education rather than an optional advantage. 

The outcome is a widening divide between graduates who possess industry-relevant skills and those who do not.  

Why GCC salaries aren't distorting the market 

The rise of Global Capability Centres (GCCs) has sparked concerns that salary growth is becoming concentrated among a small section of highly skilled professionals. But the premium is attached to capability rather than the GCC label itself. 

"Compensation has always been linked to skills and business models rather than job titles. GCCs pay more because they require higher-value skills and operate further up the value chain," Balasubramanian said. 

The pay transparency 

Another shift underway is the growing transparency around salaries. 

Employees today have access to salary reports, peer benchmarks, professional networks and online communities, making compensation conversations more informed than ever before. 

"The future is less likely to be about secrecy and far more about clearly explaining why people are paid differently," Balasubramanian said. 

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This increasing transparency is forcing organisations to articulate not just what they pay, but why they pay it. 

AI, layoffs and the future of work 

The report arrives at a time when concerns around layoffs, restructuring and artificial intelligence continue to dominate workplace conversations. 

Yet Balasubramanian remains optimistic. "We are going through a disruptive transition, but technological shifts have historically created more opportunities than they have eliminated," he said. 

The real differentiator, he argues, will be adaptability. As AI reshapes work, the labour market is increasingly rewarding continuous learning, digital fluency and the ability to acquire new skills quickly. 

For professionals worrying about whether AI will take away jobs, the message is straightforward: the future may belong less to those who hold a degree and more to those who keep learning.