These jobs are getting the biggest salary hikes in FY27 — and they're not in IT

If you are working in India’s manufacturing, engineering and infrastructure (MEI) sector, the next salary cycle could bring a bigger pay bump than the last one.

Salary increments in the sector are projected to rise to 9.4% in FY2026–27, up from 7.9% in the previous year, according to the TeamLease Jobs and Salaries Primer FY2026–27.

The growth is being driven by a recovery in project activity, semiconductor-linked expansion and the rollout of Industry 4.0 capabilities.

But the biggest salary gains are not necessarily going to the roles one might expect.

Project Engineers lead salary growth

Project Engineers are expected to see the highest salary increment at 10.7%, according to the report. They are followed by EHS Officers and Site Engineers, at 10.1% each, while Mechanical Design Engineers are projected to receive a 9.9% increase.

The numbers point to growing demand for professionals who can keep projects moving, ensure workplace safety and compliance, and bring specialised engineering capabilities to increasingly complex industrial operations.

As companies expand manufacturing capacity and invest in new infrastructure and technology, professionals who can execute projects efficiently and safely are becoming increasingly valuable.

Engineering edges ahead of IT

At the functional level, Engineering is emerging as the strongest salary growth area in the sector, with projected increments of 9.9%.

IT follows closely at 9.8%, while Finance is expected to see salary growth of 9.5%.

The trend reflects how industrial operations are changing. Technical execution is increasingly being combined with digital systems, automation and tighter cost management, creating demand for professionals who can bring together engineering expertise and the needs of modern, digitally enabled operations.

Gurgaon and Coimbatore lead city salary growth

Location is also emerging as a factor in salary growth.

Gurgaon leads city-level salary increments in the MEI sector at 10.9%, followed by Coimbatore at 10.8%.

Hyderabad and Pune are both projected to record salary increments of 10.1%, while Vadodara follows at 9.9%.

The concentration of salary growth in these cities reflects the continued importance of industrial clusters, manufacturing ecosystems and engineering-led expansion.

Specialised skills are gaining value

The salary outlook also points to a broader shift in what employers are willing to pay for.

As manufacturing and infrastructure projects become more complex, companies are placing greater value on specialised capabilities that combine technical expertise with strong execution skills.

The rising demand for Project Engineers, EHS professionals, Site Engineers and Mechanical Design Engineers reflects the importance of delivering projects efficiently, safely and at scale.

Balasubramanian A., Senior Vice President, TeamLease Services, said the 9.4% salary growth projected for MEI reflects a sector that is moving from “recovery to execution”.

"The premium is increasingly shifting towards professionals who can translate capital investments into operational outcomes, whether on the factory floor, at the project site or through digitally enabled engineering systems," he said.

As industrial expansion deepens, he added, organisations that invest in specialised engineering and execution capabilities will be better positioned to build long-term competitiveness.

The findings are based on the TeamLease Jobs and Salaries Primer FY2026–27, which analyses projected salary growth across 23 industries and 20 cities in India. The study covers entry-level roles and provides a forward-looking view of compensation trends across industries, functions and locations.