Summary of this article
Salaries in India are projected to rise by 9 per cent in 2026, slightly higher than the 8.9 per cent increase recorded in 2025, according to Aon’s Annual Salary Increase and Turnover Survey. The report highlights that real estate, infrastructure, and non-banking financial companies (NBFCs) will see the biggest pay hikes, even as attrition rates continue to decline across industries.
Salaries in India are expected to rise by around nine per cent in 2026, according to Aon’s latest Annual Salary Increase and Turnover Survey. The figure marks a small but steady improvement over the 8.9 per cent average increase recorded this year, showing that most companies are holding on to their hiring and pay plans even as the global economy slows.
The survey, now in its 31st year, gathered data from more than a thousand companies across 45 industries. What stands out in the report is that sectors tied closely to India’s domestic growth story, namely, real estate, infrastructure, and non-banking financial companies (NBFCs), are leading the way with the sharpest pay hikes.
This is how the salary hike projection looks across all the key sectors:
Real estate and infrastructure firms are expected to offer salary increases averaging 10.9 per cent next year, while NBFCs are likely to follow at 10 per cent.
Life sciences, retail, and automotive manufacturing sectors are projected to offer salary hikes close to or above 9.5 per cent.
The technology consulting segment, however, is showing signs of moderation, with projected increases of around 6.8 per cent.
“India’s growth story remains strong, supported by infrastructure investments and policy measures,” says Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions for India at Aon.
He added that sectors such as real estate and NBFCs are focusing on building long-term talent pipelines, even as companies across industries become more deliberate about how they distribute compensation.
Interestingly, the report highlights another trend that hints at stability. Attrition rates, which shows the percentage of employees leaving an organisation over a specific period, had been climbing post pandemic. However, these rates dropped to 17.1 per cent in 2025, down from 17.7 per cent the year before.
The report notes that as more employees stay on, organisations are starting to redirect budgets towards upskilling and internal mobility rather than merely hiring to fill gaps.
Amit Kumar Otwani, associate partner at Aon, pointed out that recent tax reforms and policy changes are helping companies realign compensation strategies with new opportunities in the market. “Simpler compliance and rationalised tax rates are boosting efficiency, especially for consumer goods and automotive players,” he said.
The larger message from these findings seems to be that, while Indian employers remain cautious, they are not pulling back on talent investment.
Salary increases next year may not be significantly higher than the previous year, but the findings show a degree of confidence that domestic demand and infrastructure push will keep driving salaries upward for now.
