Salaries to rise in India next year; biggest pay hikes expected in these sectors: Survey

Aon survey says salary growth will moderate amid global headwinds; real estate and NBFCs to lead pay hikes next year

Salaries in India are expected to rise by 9 percent in 2026, driven by robust domestic consumption, ongoing investment, and supportive government policies, despite global economic uncertainties, according to a survey released on Tuesday.

The projected 9 percent increase marks a slight uptick from the 8.9 percent salary growth recorded in 2025, as highlighted in AON’s ‘Annual Salary Increase and Turnover Survey 2025-26 India’.

The survey, now in its 30th edition, gathered insights from 1,060 organisations across 45 industries.

Industry-wise, real estate and infrastructure are expected to see the highest salary hikes at 10.9 percent, followed by non-banking financial companies (NBFCs) at 10 percent. Other sectors with notable increases include engineering design services (9.7 percent), automotive manufacturing (9.6 percent), retail (9.6 percent), and life sciences (9.6 percent), reflecting continued investment in key talent pools.

“India’s growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment, and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions for India at AON.

The survey also noted a gradual decline in overall attrition rates, falling to 17.1 percent in 2025 from 17.7 percent in 2024 and 18.7 percent in 2023.

This trend points to a more stable talent landscape, allowing organisations to focus on targeted upskilling and development programmes to build a resilient workforce and prepare for future business needs.