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India Leads Global Appraisal Average In 2025–26

A report by Aon highlights how India is leading in terms of global increment average. Here's what the data shows

India Leads Global Salary Hikes (AI Image)
Summary
  • India leads global salary increments at 9.1%

  • Auto, real estate sectors see highest hikes

  • Junior employees get highest increment levels

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India’s corporate appraisal cycle for the year 2025-26 has stood out significantly for providing fair financial growth to employees. India was in the lead in wage increments globally, as per a recent report by Aon, namely, “Salary Increase & Turnover Survey 2025-26”. The data reveals that India stands at 9.1 per cent, which is the highest among the global economies. This data also reveals the sectors where the increase was lower than the global average rate.

For employees and those joining the workforce in the coming years, this becomes a useful point of reference for their career growth. A salary increase of 9 per cent places individuals ahead of the national average, while increments around this range suggest alignment with other vast corporate trends. The data also reveals how well the other global markets are doing in this segment, where performance-based raises and salary corrections are concerned.

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The report also gives a sector-wise breakdown of which industries provide increments at what rates in 2025 and what the projected salary increment is for 2026. As per the data, automotive and vehicle manufacturing stood at 9.8 per cent for an increase in 2025, while the projected growth in 2026 is expected to be 9.9 per cent. Followed by banking at 8.4 per cent with an expectation of 8.8 per cent, and chemicals at 8.5 per cent with a projection of 8.8 per cent. The automotive, engineering and real estate industries are leading this growth with growth percentiles between 9.9 per cent and 8.5 per cent.

Aon Data
Aon Data

The other picture the data paints is that the technology consulting sector has emerged slowly, with comparatively low increments. The trend reflects cautious spending with new and evolving business models and the growing impact of automation, which reshapes hiring and compensation planning.

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Insight shared in a report by NDTV mentions a variation in appraisals across employee levels. Junior-level employees receive the highest average increment of around 9.6 per cent. This is followed by mid-level professionals at nearly 9 per cent. The senior leadership sees a lower increment at 8.5 per cent.

Interestingly, the report highlights the shift in expectations that employees have. Rather than just focusing on the salary digits, professionals are evaluating the real purchasing power, role clarity, and long-term growth opportunities.

“Resilient domestic demand, moderating inflation and new trade agreements are contributing to a positive medium‑term outlook, even as firms navigate geopolitical uncertainty. Stronger salary growth in sectors such as real estate, NBFCs and manufacturing underscores employers’ intent to invest in critical talent while building more sustainable compensation strategies,” stated Roopank Chaudhary, Partner, Talent Solutions, Aon

The appraisal landscape in India reflects a balanced approach through the data shared by Aon, with steady salary growth. While increments remain healthy for the employees' personal and financial demands, India's leading position in the global ranking shows how the industries are rewarding their employees.

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