Corporate India is projected to implement an average salary rise of 9.1% in 2026, with Global Capability Centres (GCCs) leading the way in pay growth, as per a recent report. GCCs are anticipated to provide the highest increments at 10.4%, fueled by strong global demand for digital and technology skills, according to the latest Future of Pay report by EY India. The financial services sector is expected to witness salary hikes of about 10%, followed by e-commerce at 9.9% and life sciences and pharmaceuticals at 9.7%, the report revealed.
The report also pointed out a gradual decrease in attrition rates, with an overall decline to 16.4% in 2025 from 17.5% in 2024, indicating a more stable job market. Despite this, over 80% of departures are voluntary, indicating that employees are still changing jobs for better prospects rather than due to layoffs. Financial services recorded the highest attrition at 24%, while professional services and hi-tech and IT sectors also experienced elevated levels.
In contrast, GCCs reported relatively lower attrition at 14.1%, as per the report. Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning at EY India, mentioned that companies are reconsidering how they invest in talent. He emphasized that the future of pay is no longer solely about the size of annual increments but about recognizing the right skills to reward and balancing competitiveness with long-term sustainability.
The report highlights a significant shift towards skills-based compensation, with nearly half of the surveyed organizations transitioning from traditional role-based pay structures to skill-based frameworks. Professionals with expertise in artificial intelligence, generative AI, machine learning, cybersecurity, and cloud computing can demand salary premiums of 30 to 40%, as these skills are increasingly vital for business growth. Variable pay is also gaining prominence, with the average variable pay as a share of fixed salary increasing to 16.1% in 2025, compared to 14.8% a year earlier.
