New Delhi (Gurpreet Singh): Employees across industries in India are projected to receive an average salary increase of 9.1 per cent in 2026, slightly higher than the 8.9 per cent rise recorded in 2025, according to a recent survey.
Global professional services firm Aon, in its ‘Annual Salary Increase and Turnover Survey 2025-26 India’, said the marginal uptick signals continued stability in compensation trends despite global economic uncertainties.
The survey, now in its 32nd edition, analysed inputs from over 1,400 organisations spanning 45 industries across the country. It highlighted that increment levels will differ by sector, reflecting varying demand and business conditions.
The real estate and infrastructure segments are expected to lead with an average hike of 10.2 per cent. Non-banking financial companies (NBFCs) may see increments of 10.1 per cent. Employees in the automotive and vehicle manufacturing industries, as well as engineering design services, are projected to receive salary increases of 9.9 per cent.
Meanwhile, workers in the engineering and manufacturing sectors are likely to see an average rise of 9.5 per cent, similar to employees in the retail industry.
The report noted that organisations are increasingly focusing on strengthening technology capabilities, engineering expertise and customer-facing roles as they compete for skilled talent in a rapidly evolving business landscape.
Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India, at Aon, said India’s economic outlook remains encouraging, supported by strong domestic demand, easing inflation and expanding trade partnerships, even as geopolitical challenges persist.
The survey also found that attrition rates declined to 16.2 per cent in 2025, moving closer to pre-pandemic levels and continuing a steady downward trajectory. Attrition had stood at 17.7 per cent in 2024 and 18.7 per cent in 2023, reflecting improved employee retention across sectors.
Amit Kumar Otwani, associate partner, Talent Solutions, India, at Aon, observed that the rollout of new labour codes has prompted organisations to reassess compensation structures. He emphasised that clearer communication around wage restructuring and enhanced social security provisions will be essential to maintaining employee confidence during this transition.
