Salary hikes in India likely to be around 9% in 2026: Aon

Employees could get salary hikes of around 9% in 2026, as per the Annual Salary Increase and Turnover Survey 2025-26 India by Aon, which would be a notch higher than 8.9% in 2025.

Amongst sectors, real estate/infrastructure and nonbanking financial companies (NBFCs) are likely to see the highest salary increases in 2026 at 10.9% and 10% respectively, while the technology consulting and services space could see the lowest hikes of 6.8% next year. However, salary hikes in the technology platform and products sector are seen at 9.4% in 2026. Global capability centres could also give salary hikes in the range of 9.5%.

“Despite headwinds, India’s economy remains resilient, supported by strong domestic consumption, investments and policy measures,” noted the report.

Automotive/vehicle manufacturing, engineering design services, retail and life sciences are also expected to continue rolling out slightly higher salary increases compared to other sectors in 2026, reflecting continued investment in critical talent pools, it further said.

“India’s growth story remains strong, supported by infrastructure investments and policy measures,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions for India at Aon.

The study shows 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,” it said.

As the workforce becomes more settled, companies are well-positioned to invest in targeted upskilling and development programs, ensuring they can build a resilient talent pipeline and prepare for future business needs, it further noted.

The study by Aon, a professional services firm, analyses data from over 1,060 companies across 45 industries.