Salary increments in India Inc are anticipated to remain stable in 2026, with an average increase of 9.1%, slightly higher than the 9% recorded in 2025, as per the “Deloitte India Talent Outlook 2026” report. Companies are now adopting a more cautious approach in their compensation strategies, emphasizing productivity and targeted skill development over aggressive pay raises. The job market has shifted in favor of employers in various sectors, leading to more prudent decisions on pay and recruitment.
The report highlights that organizations are focusing on specialized skills rather than mass hiring, with a decline in the proportion of employees receiving top ratings. Only about 7% of employees received the highest rating in 2025, down from 10% in the previous year, while more employees are now placed in lower performance categories. Despite this, promotion rates have increased, with around 14% of employees promoted in 2025, compared to 12% in 2024, especially in manufacturing and operations-heavy sectors.
While attrition levels have remained relatively stable, some sectors like financial services have seen a slight rise in employee exits. Salary increments are expected to vary across industries, with sectors like pharmaceuticals, manufacturing, and renewable energy likely to offer above-average hikes, even surpassing 10% in some cases. On the other hand, the technology sector is experiencing some moderation, with IT services firms projected to provide lower increments due to slower hiring and the influence of automation and artificial intelligence.
