India 2026 Salary Increase Forecast
Analysis based on 7 articles · First reported Dec 17, 2025 · Last updated Dec 17, 2025
The projected 9% salary increase in India for 2026, as reported by Mercer, indicates a stable economic outlook and potential for increased consumer spending, positively impacting various sectors. Companies in India are recalibrating compensation strategies, focusing on performance and skills, which could lead to improved productivity and talent retention.
Mercer's 'Total Remuneration Survey 2026' forecasts an average 9% salary increase for employees in India in 2026. The survey, covering over 8,000 roles and 1,500 companies, highlights a shift towards short-term incentives, performance-linked rewards, and skills-based pay frameworks. Key factors influencing these increases include individual performance, inflation, and market competitiveness. Malathi KS and Mansee Singhal of Mercer emphasized the balance between cost pressures and talent retention, alongside the growing importance of skills-based organizational architecture. High-tech and automotive industries are expected to see the highest increases, at 9.3% and 9.5% respectively. The implementation of new labor codes is also noted to influence compensation planning by tightening social security and healthcare provisions.
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