As the appraisal cycle unfolds amid the ongoing job market complexity, India’s compensation landscape is steadily shifting towards a more selective, skills-aligned wage cycle, according to the Adecco India Salary Guide 2026.
Professionals anticipate salary increments in the range of 6–10 per cent, with expectations crossing 10 per cent in high-demand areas such as artificial intelligence (AI), digital technology, electric vehicles (EVs) and specialised technical roles.
Labour market dynamics are also telling a different story. Among those surveyed, 42 per cent of professionals are actively looking for new opportunities, with 47 per cent open but not actively searching, indicating a complex scenario.
This reflects cautious career optimism, where professionals are open to better roles amid skill-led demand and pay differentiation, but are making measured moves due to economic uncertainty and selective hiring.
For instance, in healthcare, job change in the clinical research & regulatory affairs segment can fetch 20–35 per cent hikes in package on a job change.
Similarly, niche or high-skill roles in fintech and data finance can expect anywhere between 30 and 40 per cent.
AI/machine learning (ML) engineers, data engineers, and cybersecurity specialists may see salary jumps of around 10 to 12 per cent in the information technology (IT) sector. Other digital roles such as full stack, Cloud, and DevOps engineers typically may see 8-10 per cent increases, still above the market average.
Sunil C, country manager, Adecco India, said, “As we unveil the Adecco India 2026 Salary Guide, we are seeing a clear shift in India’s employment landscape. It is towards a more selective, skills-driven model as digital transformation and automation reshape talent demand.”
He also said that salary hikes in 2026 are expected to remain moderate at 6–10 per cent across most industries.
He sees stronger growth concentrated in emerging domains such as Generative AI, data science, Cloud, cybersecurity, blockchain, 5G, Internet of Things (IoT), quantum computing, and augmented reality over the next three to five years.
At the same time, organisations are contending with acute talent shortages in niche domains, rising labour costs, and the urgent need to reskill at scale in response to rapid technological shifts.
Leadership and management (22 per cent), AI and ML (16 per cent), and project management (15 per cent) are emerging as the most critical skills over the next five years. All of this is happening amid the rise of a multigenerational workforce, presenting both integration challenges and an opportunity to build more diverse, adaptive talent models.
Beyond mobility and compensation shifts, retention dynamics are being redefined by a broader employment value proposition rather than pay alone. Work-life balance (25 per cent) continues to be a leading retention driver, followed by professional development (23 per cent), brand reputation (16 per cent), manager quality and organisational culture (14 per cent), and benefits (13 per cent), signalling a clear shift towards holistic employment value.
This is further reflected in evolving work structures, with 43 per cent of professionals in hybrid roles, 35 per cent fully remote, and 22 per cent fully in office, highlighting the ongoing recalibration between flexibility and operational needs.
Even as AI is increasingly viewed as a growth enabler, apprehensions persist, with 65 per cent concerned that AI-led screening may unfairly exclude qualified candidates, 35–45 per cent anxious about automation reducing job opportunities, and 20 per cent wary of data handling and misuse. This is reinforcing the need for more transparent and responsible adoption of AI in talent practices.
From an employer perspective, retention is increasingly being addressed through structured growth and capability-building interventions.
Personalised career development plans (23 per cent), technical upskilling and certifications (19 per cent), leadership development programmes (18 per cent), and access to learning platforms and online courses (16 per cent) are among the most preferred levers, alongside mentorship and coaching initiatives (10 per cent).
However, despite strong intent, only 30–40 per cent of organisations from the surveyed report have formal, personalised career development pathways in place, indicating a gap between strategy and execution.
On the diversity, equity, and inclusion (DEI) front, efforts are becoming more structured, with flexible work policies (46 per cent), pay equity reviews (39 per cent), diversity training programmes (38 per cent), transparent communication of DEI goals (31 per cent), and inclusive hiring practices (25 per cent) emerging as the most common focus areas. This is because organisations seek to institutionalise inclusion rather than treat it as a standalone initiative.
 "Adecco sees 6-10% salary hikes in 2026; AI-led roles to get bigger jumps")
