Salaries in India projected to increase by 9 pc in 2026: Report

Salaries in India are expected to grow by nine% in 2026, a new report said on Tuesday.
The projected increase is slightly higher than the 8.9% growth recorded in 2025 — reflecting a resilient job market despite global economic slowdowns.
The data compiled by Aon plc highlighted that sectors like real estate, infrastructure, and non-banking financial companies (NBFCs) are likely to see the highest salary hikes in 2026.
The data compiled by Aon plc highlighted that sectors like real estate, infrastructure, and non-banking financial companies (NBFCs) are likely to see the highest salary hikes in 2026.
Real estate and infrastructure companies are expected to offer a 10.9% increase, while NBFCs may see salaries rise by 10% .
Other industries such as automotive and vehicle manufacturing are projected to offer 9.6% , engineering design services 9.7% , engineering and manufacturing 9.2% , retail 9.6% , and life sciences 9.6% .
Salaries in chemicals are expected to grow by 8.8% , e-commerce by 9.2% , fast-moving consumer goods (FMCG) by 9.1% , global capability centres by 9.5% , technology platform and products by 9.4% , banking by 8.6% , and technology consulting and services by 6.8% .
According to Aon, India’s strong domestic consumption, infrastructure investments, and supportive policy measures are helping businesses maintain growth and stability.
Roopank Chaudhary, partner and rewards consulting leader at Aon, said, “Key sectors like real estate and NBFCs are leading the way in talent investment. Companies are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty.”
The report also showed that attrition rates have gradually declined, reaching 17.1% in 2025, down from 17.7% in 2024 and 18.7% in 2023.
This points to a more stable talent landscape, with companies increasingly able to retain employees and invest in upskilling and development programmes to build a resilient workforce for the future.
Amit Kumar Otwani, associate partner at Aon, noted that recent tax reforms are transforming India’s business environment, particularly benefiting consumer goods and automotive sectors.
“Simpler compliance and rationalised tax rates are boosting efficiency. Companies that align their rewards strategies with these changes will be best positioned to attract top talent,” he added.