Salaries to grow 9% in 2026 as job churn slows across sectors: Survey

Real estate and NBFCs are set to lead the pay surge, while cooling attrition signals a more stable job market, according to the latest salary and turnover survey

Salaries across Indian companies are projected to rise by 9 per cent in 2026, according to Aon’s Annual Salary Increase and Turnover Survey 2025-26 India. The marginal uptick from 8.9 per cent in 2025 underscores India’s resilience amid a global slowdown and signals cautious optimism among employers.

 

Cautious optimism amid global headwinds

The 31st edition of Aon’s study, which surveyed over 1,060 organisations across 45 industries, shows that Indian firms are taking a measured approach to compensation planning. Despite geopolitical and trade uncertainties, the country’s steady GDP growth of around 6.4 per cent and easing inflation have encouraged companies to maintain competitive salary budgets.

 

 

“While global conditions remain uncertain, India’s growth story is intact, supported by infrastructure investments and strong domestic consumption,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India at Aon.

 

Sector winners: Real estate and NBFCs in the lead

The biggest pay hikes are expected in real estate and infrastructure (10.9 per cent) and non-banking financial companies (10 per cent), followed by automotive manufacturing and life sciences. These sectors continue to invest aggressively in skilled talent to drive growth and innovation.

 

Other sectors such as engineering design services (9.7 per cent), global capability centres (9.5 per cent), and retail (9.6 per cent) also show above-average projections. However, technology consulting and services remain cautious, with the lowest expected increase at 6.8 per cent.

 

Attrition slows, stability returns

Attrition in India has eased to 17.1 per cent in 2025, the lowest in five years. Aon attributes this to improved retention efforts and the normalisation of post-pandemic job churn. Interestingly, while voluntary exits have declined, involuntary separations such as layoffs and performance-based exits have inched up.

 

The road ahead

Experts say salary decisions are becoming increasingly strategic and skill-based. Companies are allocating larger budgets to critical roles, particularly in technology, financial services and infrastructure, while keeping overall costs in check.

 

“With reforms simplifying taxation and boosting consumption, organisations that align pay strategies with economic shifts will attract and retain the best talent,” said Amit Kumar Otwani, associate partner, Talent Solutions, India.

 

As India sustains its growth momentum, 2026 could mark a year of measured optimism, where salary hikes remain steady, attrition declines, and talent management becomes more targeted than ever.