Average pay hike across sectors projected at 9.1% in 2026: Survey
Employees across sectors are expected to get a salary hike of 9.1 per cent on average in 2026, slightly higher than the increment of 8.9 per cent received last year, a survey said on Tuesday.
The projected 9.1 per cent salary increase reflects a slight uptick from the actual 8.9 per cent hike recorded in 2025, which signals sustained salary movement, said global professional services firm AON, citing its ‘Annual Salary Increase and Turnover Survey 2025-26 India’.
The latest survey, the 32nd edition, is based on an analysis of data from more than 1,400 organisations across 45 industries in the country.The projected salary hikes will vary depending on industries, it said. The workforce in the real estate and infrastructure sectors is expected to get the maximum pay hike of 10.2 per cent on average, followed by those working in non-banking financial companies (NBFCs) at 10.1 per cent, it said.
Employees in the automotive and vehicle manufacturing sectors are expected to get a hike of 9.9 per cent, while those in engineering design services could expect an increment of 9.9 per cent.
Engineering and manufacturing sector workers would receive an average increment of 9.5 per cent and those in the retail industry are expected to get a raise of 9.5 per cent, the survey found.
These trends underscore that employers in India are focusing on strengthening technology, engineering and customer-facing capabilities as organisations compete for specialised talent in an evolving market environment, said the report.
“India is entering the next phase of its growth story on a stronger macro foundation. Resilient domestic demand, moderating inflation and new trade agreements are contributing to a positive medium-term outlook, even as firms navigate geopolitical uncertainty,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India, for Aon.
The survey further revealed that overall attrition declined to 16.2 per cent in 2025, returning close to pre-COVID levels and extending a downward trend over the past three years.
Attrition stood at 17.7 per cent in 2024, falling from 18.7 per cent in 2023, indicating steady improvement in employee retention across industries, it added.
With the implementation of new labour codes, organisations are now navigating one of the most significant regulatory transitions in decades, said Amit Kumar Otwani, associate partner, Talent Solutions, India, for Aon.
“The standardised definition of wages and expanded social security provisions are prompting many employers to reassess and restructure compensation. Clear communication around these changes will be critical to maintaining workforce trust and stability,” he added.
