India 2026 Salary Hike Forecast
Analysis based on 7 articles · First reported Feb 24, 2026 · Last updated Feb 24, 2026
The projected 9.1% average salary hike in India for 2026, as reported by Aon (company), indicates a positive economic outlook and increased consumer spending potential, which could boost various sectors. The decline in attrition rates suggests a more stable workforce, allowing companies to focus on upskilling and long-term growth strategies.
A report by Aon (company) forecasts that salaries in India are expected to increase by an average of 9.1% in 2026, a slight rise from the 8.9% recorded in 2025. This growth is driven by resilient domestic demand, moderating inflation, and new trade agreements, despite geopolitical uncertainties. Sectors like real estate, infrastructure, and non-banking financial companies (NBFCs) are projected to see the highest increases, while technology consulting and services may experience slower growth. The report, based on a survey of over 1,400 organizations across 45 industries, also highlights a significant decline in attrition rates to 16.2% in 2025, nearing pre-COVID levels. This normalization reflects more targeted hiring, enhanced employee engagement, and increased workplace stability. Additionally, India's newly notified labor codes are prompting companies to reassess and restructure compensation, with Amit Kumar and Pankaj Chaudhary of Aon (company) emphasizing the importance of clear communication during this transition.
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