Salaries in India are expected to rise by 9.1% in 2026, a slight increase from the 8.9% growth seen in 2025, as per a report by Aon plc. The report indicates that salary growth will vary across industries, with real estate, infrastructure, and NBFCs likely to witness the highest increases at 10.2% and 10.1% respectively.
Technology Consulting and Services are anticipated to experience the slowest salary growth at 6.6%, according to the report. Sectors such as automotive, vehicle manufacturing, engineering design services, engineering, manufacturing, and retail are also projected to offer slightly above-average salary hikes.
Retail employees are forecasted to receive average salary increments of 9.5%, while life sciences companies are expected to see raises of 9.4%. Global capability centers are likely to witness hikes of 9.3%, with funds and asset management firms at 8.5%.
The study, which surveyed over 1,400 organizations and 45 industries, highlighted that Indian employers are enhancing technology, engineering, and customer-facing capabilities to attract specialized talent in a competitive market. Overall attrition rates decreased to 16.2% in 2025 from 17.7% in 2024 and 18.7% in 2023, indicating improved employee retention across sectors.
This decline in attrition reflects more focused hiring practices and a greater emphasis on employee engagement, career mobility, and workplace stability. With a more stable and engaged workforce, organizations can concentrate on targeted upskilling, invest in critical capabilities for the future, and develop resilient talent pipelines for long-term growth.
“With India’s labor codes now in effect, organizations are navigating significant regulatory changes,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, at Aon. Otwani emphasized that the standardized definition of wages and expanded social security provisions are leading many employers to review and restructure compensation. Effective communication regarding these changes will be crucial for maintaining workforce trust and stability.
