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The new baseline: Why 10% is the minimum hike for India’s top talent in 2026

The new baseline: Why 10% is the minimum hike for India’s top talent in 2026

India’s job market is evolving and professionals are now expecting salary hikes of 6–10 per cent in 2026, according to the Adecco India ‘2026 Salary Guide’. The report indicates that salary expectations in high-demand sectors such as Artificial Intelligence, digital technology, electric vehicles (EV), and specialised technical roles are set to exceed 10 per cent.

This change is over a combination of talent shortages in niche areas, rising labour costs, and the rapid pace of technological advancements. Professionals with skills in leadership, AI, machine learning, and project management are likely to see the highest demand.

High salary growth in emerging sectors

Certain industries are expected to see even greater salary growth, with sectors like fintech, data finance, and healthcare offering significant hikes. For instance, roles in clinical research and regulatory affairs in healthcare may experience salary increases of 20–35 per cent, but fintech professionals can expect up to 40 per cent growth in their wages.

IT specialists in AI/ML, data engineering, and cybersecurity are also set to benefit from a growth rate of 10–12 per cent. Other digital roles, including full-stack, cloud, and DevOps engineers, are likely to see growth of 8–10 per cent.

Key skills for the future

The next five years will see a surge in demand for professionals with skills in leadership and management (22 per cent), AI and machine learning (16 per cent), and project management (15 per cent). As businesses focus on innovation and technological advancements, these areas will emerge as critical for success.

Work-life balance and career development

In today’s competitive job market, salary alone is not enough to retain top talent. The report shows the importance of factors such as work-life balance, professional development, and a company’s brand reputation. Flexible work arrangements are now a key offering, with 43 per cent of employees working in hybrid roles, 35 per cent fully remote, and 22 per cent in-office.

“Retention is increasingly driven by holistic employment value,” says Sunil C., Country Manager, Adecco India. As companies embrace digital transformation, they are focusing on offering employees not just competitive salaries, but also an overall better work experience.

Concerns over AI and automation

A significant portion of the workforce is wary of AI-led screening processes and the potential for job losses due to automation. Around 65 per cent of professionals fear bias in AI-driven hiring, while 35–45 per cent worry that automation might reduce their job opportunities.

Growth in India’s cleantech sector

India’s cleantech industry is one of the fastest-growing talent markets in the country. Over the past two years, hiring in this sector has risen by 56.6 per cent, with the workforce expanding by 13.4 per cent year-on-year (YoY), according to a report from CIEL HR. However, the report also pointed out that the sector is still facing challenges, including gender imbalances and skill gaps.

Regardless of these challenges, the demand for talent in cleantech continues to rise, driven by government targets to increase non-fossil fuel energy capacity. The report notes that India’s clean technology market is expected to generate $63.4 billion in revenue in 2024, growing to $152.5 billion by 2030, with a compound annual growth rate (CAGR) of 16.1 per cent.

Challenges in talent pipeline

Although the cleantech sector is expanding rapidly, there is a misalignment between the available talent pool and the advanced skills required for renewable energy systems, grid integration, and storage technologies. India produces over one million engineering graduates every year, yet the sector faces challenges in recruiting professionals with the necessary expertise.

Metro cities dominate hiring, but Tier 2 and Tier 3 cities catching up

The cleantech sector, like other industries, shows a concentration of job opportunities in metro cities. The Delhi NCR region accounts for 44 per cent of the total job openings, while Tier 2 and Tier 3 cities account for 30 per cent. Cities like Mumbai, Bengaluru, and Pune also contribute to the hiring landscape, with Mumbai leading with 9 per cent of openings.

In the cleantech industry, nearly 48 per cent of roles offer annual salaries of Rs 10 lakh or more, a figure comparable to the IT sector. However, the sector’s workforce remains fluid, with professionals often switching jobs after relatively short tenures ie 2.7 years on average.

Source – https://www.financialexpress.com/business/news/the-new-baseline-why-10-is-the-minimum-hike-for-indias-top-talent-in-2026/4161592

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