India Inc. salaries are expected to rise by 9% by 2026, driven by resilient consumption, investment, and policy support, despite uncertainties in global economic growth.
The AON Annual Salary Increase and Turnover Survey 2025-26, cited by PTI, collected input from 1,060 organisations across 45 industries nationwide.
India Inc. Salaries Set to Rise 9% by 2026 Amid Strong Domestic Growth and Policy Support
The real estate and infrastructure sector is projected to see a 10.9% salary increase, while employees in non-banking financial companies (NBFCs) are expected to get a 10% hike in 2026.
Other sectors are also expected to see growth: automotive/vehicle manufacturing at 9.6%, engineering design services at 9.7%, retail at 9.6%, and life sciences at 9.6%.
Roopank Chaudhary, partner and rewards consulting leader at Aon, said, “India’s growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty.”
The overall attrition rate in India has declined to 17.1% in 2025 so far, down from 17.7% in 2024 and 18.7% in 2023.
The gradual decline in attrition is attributed to a more stable talent landscape, with organisations experiencing improved employee retention.
As employees in India Inc. become more settled, companies are better positioned to invest in targeted upskilling and development programs, helping build a resilient talent pipeline and prepare for future business needs.
Indian Companies to Offer Average Salary Hikes of 6.2% to 11.3% in FY 2025–26
In August, we reported that Indian companies will raise salaries by an average of 6.2% to 11.3% during the fiscal year 2025–2026.
According to the TeamLease Services – Jobs and Salaries Primer 2025-26 report, pay increases of up to 13.8% are possible for certain roles.
As demand shifts toward roles with technical skills and immediate business impact, the anticipated growth “signals a broader realignment in India’s job and wage landscape,” according to Kartik Narayan, CEO-Staffing at TeamLease Services.
Data from 1,308 businesses in 20 cities and 23 industries served as the basis for the report.
