Indian professionals are expected to get a big boost in 2026, with salary growth expected to reach 9%, according to Aon plc’s annual Salary Increase and Employee Turnover Survey 2025-26 India. This growth reflects a steady economic recovery, increasing demand for skilled talent, and strong investments in key sectors. The survey, now in its 31st year, analyzed data from more than 1,060 companies in 45 industries, providing comprehensive insights into compensation trends, workforce movements, and sector-specific opportunities.
The 9% increase represents a slight increase from the 8.9% salary growth recorded in 2025, demonstrating resilience despite a slowing global economy. India’s strong domestic consumption, strong investments, and proactive policy measures are creating positive expectations for salary increases.
Industry wise salary trends
Salary growth is expected to vary across sectors, with real estate/infrastructure companies and non-banking financial companies (NBFCs) leading the pack. Other industries such as automotive, engineering design services, retail, and life sciences are also expected to see above-average increases, supported by sustained investments in important talent pools.
Expected salary increases across industries:
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India overall: 2025–8.9% | 2026–9.0%
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Real estate/infrastructure: 2025–10.5% | 2026–10.9%
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Non-banking financial companies: 2025–9.8% | 2026–10.0%
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Automotive: 2025–9.8% | 2026–9.6%
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Life Sciences: 2025–9.6% | 2026–9.6%
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E-commerce: 2025–8.9% | 2026–9.2%
Decreased stability of attrition signals
The survey also indicates lower employee attrition rates, which fell to 17.1% in 2025 from 17.7% in 2024. This decline indicates a more stable talent landscape, allowing companies to invest in upskilling and development initiatives. “India’s growth story remains strong, supported by infrastructure investments and policy measures,” notes Rupank Chaudhary, head of partner advisory and rewards at Aon.
Impact of policy reforms
Tax reforms also contribute to positive expectations, as simple compliance and rationalization of tax rates enhance business efficiency. “Companies that align their compensation strategies with these changes are better positioned to attract and retain top talent,” says Amit Kumar Utwani, associate partner at Aon.
With key industries leading and attrition rates low, companies are focusing on workforce stability, upskilling, and strategic investments in talent, ensuring a solid foundation for growth in 2026 and beyond.
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