Salaries across India are expected to see a 9% rise in 2026 despite global economic growth uncertainties. A newly released survey by Aon noted that the economy had remained resilient despite headwinds — supported by strong domestic consumption, investments and policy measures.
“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.
What were the findings?
According to the Annual Salary Increase and Turnover Survey 2024-25 released by Aon, the salary increases are projected to vary across industries in the coming year. Real estate or infrastructure (10.9%) and non-banking financial companies (10%) will likely see the highest increases. The report made use of inputs from 1,060 organisations across 45 industries to outline its predictions.
The report also said that automotive or vehicle manufacturing was expected to witness 9.6% salary growth while engineering design services saw a 9.7% uptick in 2026. This would be followed by the retail segment and life sciences — both seeing a 9.6% salary hike in 2026. The projections suggest there will be continued investment in critical talent pools over the next year.
Th survey also revealed that overall attrition rates have declined to 17.1% in 2025 — down from 17.7% in 2024 and 18.7% in 2023. This gradual decline points to a more stable talent landscape, with organisations experiencing improved employee retention.