The compensation landscape in India is shifting towards a more selective, skills-focused pay structure, with professionals anticipating salary increases ranging from 6–10 per cent. Sectors like AI, digital technology, electric vehicles (EV), and specialized technical roles are expecting increments exceeding 10 per cent, as per the Adecco India ‘2026 Salary Guide.’
The report emphasizes talent shortages in specialized areas, escalating labor expenses, and the necessity for extensive reskilling to adapt to rapid technological advancements. Leadership and management skills (22 per cent), AI and machine learning (16 per cent), and project management (15 per cent) are projected to be crucial over the next five years.
Amid cautious optimism in the labor market, 42 per cent of professionals are actively seeking new opportunities, while 47 per cent are open to offers without actively searching, the report reveals. In healthcare, transitions in clinical research and regulatory affairs could lead to salary hikes of 20–35 per cent, while fintech and data finance roles may witness increases of 30–40 per cent.
IT specialists like AI/ML engineers, data engineers, and cybersecurity professionals generally foresee growth of 10–12 per cent. Other digital roles, including full-stack, cloud, and DevOps engineers, typically anticipate 8–10 per cent increments. Strategic leadership positions in BFSI, such as CFOs and CROs, command salaries double the market average, with metro cities offering 10–20 per cent higher pay than Tier 2 and Tier 3 locations.
Employee retention is increasingly influenced by comprehensive employment value, with factors like work-life balance (25 per cent), professional development (23 per cent), brand reputation (16 per cent), managerial quality and culture (14 per cent), and benefits (13 per cent) playing key roles. Flexible work arrangements are prevalent, with 43 per cent in hybrid roles, 35 per cent fully remote, and 22 per cent fully in-office.
Despite the benefits, the adoption of AI raises concerns, with 65 per cent of professionals apprehensive about bias in AI-led screening and 35–45 per cent worried about automation impacting job opportunities. Sunil C., Country Manager at Adecco India, noted a noticeable shift in India’s employment landscape towards a more selective, skills-driven model due to digital transformation and automation reshaping talent demand.
Salary increments in 2026 are projected to be moderate at 6–10 per cent across most industries, with stronger growth anticipated in emerging domains like Generative AI, data science, cloud, cybersecurity, blockchain, 5G, IoT, quantum computing, and augmented reality over the next three to five years.
