India Salary Forecast: 9% Increase Projected for 2026 Despite Global Economic Uncertainties

The analysis incorporates data from 1,060 organizations spanning 45 industry sectors.

Mumbai:

According to a survey released Tuesday, salaries across India are projected to increase by 9 percent in 2026, supported by robust consumption patterns, ongoing investments, and favorable policy frameworks, despite global economic uncertainties.

This forecasted growth represents a marginal improvement from the 8.9 percent actual salary increase recorded in 2025, even as global economic expansion slows, based on findings from global professional services firm AON's 'Annual Salary Increase and Turnover Survey 2024-25 India'.

The report highlights that despite external challenges, India's economy has demonstrated remarkable resilience, bolstered by strong domestic consumption, continuous investments, and effective policy initiatives.

This 30th edition of AON's comprehensive annual survey draws insights from 1,060 organizations across 45 diverse industries.

The survey further indicates that salary increases will vary significantly across sectors, with real estate/infrastructure (10.9 percent) and non-banking financial companies (10 percent) projected to lead with the highest increases in 2026.

The automotive/vehicle manufacturing sector is expected to implement 9.6 percent salary growth, closely followed by engineering design services (9.7 percent), retail (9.6 percent), and life sciences (9.6 percent), reflecting sustained investment in critical talent segments.

"India's growth trajectory remains robust, underpinned by infrastructure investments and supportive policy measures. Our survey demonstrates that key sectors like real estate and NBFCs are at the forefront of talent investment, while businesses are adopting strategic approaches to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty," noted Roopank Chaudhary, partner and rewards consulting leader for Talent Solutions India at Aon.

Additionally, the survey reveals that overall attrition rates have decreased to 17.1 percent in 2025, down from 17.7 percent in 2024 and 18.7 percent in 2023.

This progressive decline suggests an increasingly stable talent landscape, with organizations experiencing better employee retention outcomes.

As workforce stability improves, companies are well-positioned to invest in targeted upskilling and development initiatives, ensuring they can build resilient talent pipelines and prepare effectively for future business requirements, according to the survey findings.