India's 2026 Salary Growth to Hit 9.1%, Led by Real Estate & NBFCs

The report from professional services firm Aon plc said salary growth will vary by industry, with real estate or infrastructure and NBFCs expected to deliver the highest increases at 10.2 per cent and 10.1 per cent respectively.

Technology Consulting and Services is estimated to be the industry with slowest salary growth at 6.6 per cent, the report said. The automotive and vehicle manufacturing, engineering design services, engineering and manufacturing and the retail sectors are also projected to offer slightly higher-than-average salary hikes, the report further said.

Retail workers are expected to see average salary increases of 9.5 per cent, while life sciences firms are projected to see raises of 9.4 per cent. Global capability centres are forecasted to see hikes of 9.3 per cent, and funds and asset management firms at 8.5 per cent.

The study covering over 1,400 organisations and 45 industries found that 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, the report further said.

Overall attrition declined to 16.2 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent in 2023, indicating steady improvement in employee retention across industries.

This normalisation reflects more targeted hiring practices, and a greater emphasis on employee engagement, career mobility and workplace stability, the firm said.

With a more stable and engaged workforce and a healthier underlying talent environment, organisations are better positioned to focus on targeted upskilling, invest in future‑critical capabilities and build resilient talent pipelines to support long‑term growth, it forecasted.

"With India's labour codes now notified, organisations are navigating one of the most significant regulatory transitions in decades," said Amit Kumar Otwani, associate partner, Talent Solutions, India, for Aon.

Otwani noted that 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 suggested.

- IANS