Steady Climb: India's Projected Salary Surge in 2026

India is projected to see a 9% salary increase in 2026, slightly up from 8.9% in 2025, due to strong domestic consumption, investments, and supportive policies amid global economic uncertainties. The real estate and non-banking financial sectors are expected to lead with the highest salary hikes.

India's salaries are expected to rise by 9% in 2026, as reported by AON's 'Annual Salary Increase and Turnover Survey 2025-26 India'. The increase is driven by resilient domestic consumption, investment, and policy support, despite global economic uncertainties.

According to the survey, real estate and infrastructure sectors foresee the largest salary growth at 10.9%, followed by non-banking financial companies (10%), automotive manufacturing (9.6%), and life sciences (9.6%). This highlights a strategic focus on retaining crucial talent amid the global slowdown.

The survey also reveals a drop in attrition rates to 17.1% in 2025, indicating improved employee retention. Companies are setting sights on targeted upskilling to fortify their talent pipeline, ensuring preparedness for future business needs.

(With inputs from agencies.)