New Delhi, Oct 7 — Salaries in India are projected to rise by 9 per cent in 2026, slightly higher than the 8.9 per cent growth observed in 2025, despite slowing global economic growth, according to Aon’s ‘Annual Salary Increase and Turnover Survey 2025-26 India’ released on Tuesday.
The survey, based on inputs from 1,060 organisations across 45 industries, highlighted that India’s economy remains resilient, supported by robust domestic consumption, policy measures, and continued investment, even amid global headwinds.
Salary growth is expected to vary across sectors. Real estate and infrastructure are projected to see the highest increases at 10.9 per cent, followed by non-banking financial companies (NBFCs) at 10 per cent. Other key industries including automotive (9.6%), engineering design services (9.7%), retail (9.6%), and life sciences (9.6%) are also set to witness significant pay hikes, reflecting sustained investment in critical talent pools.
Roopank Chaudhary, partner and rewards consulting leader at Aon India, said, “India’s growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment, and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty.”
The survey also revealed a gradual decline in overall attrition rates, which fell to 17.1 per cent in 2025 from 17.7 per cent in 2024 and 18.7 per cent in 2023, indicating a more stable talent landscape and improved employee retention.
According to Aon, a settled workforce positions companies to invest in targeted upskilling and development programmes, helping build a resilient talent pipeline capable of meeting future business needs.
The survey’s findings underscore a strategic approach to compensation and workforce management, as organisations seek to retain top talent while navigating economic uncertainties and preparing for long-term growth.
