Industry insights: Which sectors will see biggest salary jumps in India by 2026?

New Delhi: Salaries in India are expected to grow by 9.1 per cent in 2026, slightly higher than the 8.9 per cent increase recorded in 2025, according to a new report by professional services firm Aon plc.

The study, which surveyed over 1,400 organisations across 45 industries, indicates that salary growth will vary significantly by sector. Real estate and infrastructure firms are forecasted to offer the highest increases at 10.2 per cent, followed closely by non-banking financial companies (NBFCs) at 10.1 per cent.

In contrast, the Technology Consulting and Services sector is projected to see the slowest growth, with average salary hikes of 6.6 per cent. Automotive and vehicle manufacturing, engineering design services, general engineering and manufacturing, and retail sectors are expected to deliver slightly above-average increases. Retail employees may receive raises averaging 9.5 per cent, life sciences firms 9.4 per cent, global capability centres 9.3 per cent, and funds and asset management firms 8.5 per cent.

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The report highlights a growing emphasis among Indian employers on strengthening technology, engineering, and customer-facing capabilities as organisations compete for specialised talent in a dynamic market.

Attrition rates also showed improvement, declining to 16.2 per cent in 2025 from 17.7 per cent in 2024 and 18.7 per cent in 2023. This reflects more targeted hiring practices, enhanced employee engagement, greater career mobility, and increased workplace stability.

“With a stable and engaged workforce, organisations are better positioned to focus on targeted upskilling, invest in future-critical capabilities, and build resilient talent pipelines to support long-term growth,” the report noted.

Amit Kumar Otwani, Associate Partner, Talent Solutions, India, for Aon, added that India’s newly notified labour codes are prompting companies to reassess and restructure compensation. “The standardised definition of wages and expanded social security provisions are significant regulatory changes. Clear communication will be critical to maintaining workforce trust and stability,” he said.

IANS