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

New Delhi, Oct 7 (IANS) Salaries in India are expected to grow by nine per cent in 2026, a new report said on Tuesday.

The projected increase is slightly higher than the 8.9 per cent 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 per cent increase, while NBFCs may see salaries rise by 10 per cent.

Other industries such as automotive and vehicle manufacturing are projected to offer 9.6 per cent, engineering design services 9.7 per cent, engineering and manufacturing 9.2 per cent, retail 9.6 per cent, and life sciences 9.6 per cent.

Salaries in chemicals are expected to grow by 8.8 per cent, e-commerce by 9.2 per cent, fast-moving consumer goods (FMCG) by 9.1 per cent, global capability centres by 9.5 per cent, technology platform and products by 9.4 per cent, banking by 8.6 per cent, and technology consulting and services by 6.8 per cent.

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 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent 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.

--IANS

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