By Shyamu Maurya

Copyright informalnewz

Salary Hike in India 2026: If you’re wondering how much companies will increase salaries in the coming year, there’s good news for you. According to a new report, salary growth in India is expected to be slightly better in 2026 than in 2025, even as the world’s major economies are currently grappling with recession and uncertainty.

Salary Hike in India 2026: If you’re employed, this news brings good news for you. Good news regarding salary increases has arrived on the occasion of Diwali. According to a new survey, salaries in India are projected to increase by an average of 9% in 2026. This increase is slightly higher than in 2025, when an average salary increase of 8.9% was recorded. Despite the global economic slowdown and uncertain environment, India’s strong consumption, investment, and government policies have fueled salary growth.

India Expected to See 9% Salary Growth in 2026

According to Aon’s ‘Annual Salary Increase and Turnover Survey 2024-25 India’, salaries in India are expected to see an average increase of 9% in 2026. This is slightly higher than the 8.9% growth seen in 2025. The report states that despite the global economic slowdown, India’s growth story remains strong, thanks to strong domestic consumption, investment, and government policy support.

Which sectors will see the highest salary increases?

According to an Aon survey, salary increases will not be uniform across sectors. Certain industries are expected to see the highest salary growth in 2026.

Salaries in the real estate and infrastructure sectors are expected to increase by approximately 10.9%, while non-banking financial companies (NBFCs) are expected to see approximately 10% growth.

Sectors such as automobile manufacturing (9.6%), engineering design services (9.7%), retail (9.6%), and life sciences (9.6%) are also expected to see good salary growth. This clearly indicates that companies are continuing to invest in skilled talent.

India’s growth story remains strong, with a focus on talent and stability.

Aon India Partner Rupank Chaudhary said, “India’s growth story remains strong. Infrastructure investment and government policy support are giving companies the confidence to grow. Companies are now focusing more on talent retention and long-term stability. Sectors like real estate and NBFCs are investing in talent, and companies are making strategic salary and hiring decisions to ensure both growth and stability.”

Good news for employees: The rate of job change is declining.

The survey also revealed that the attrition rate is gradually decreasing. While it was 18.7% in 2023, it decreased to 17.7% in 2024 and 17.1% in 2025. This indicates that employee stability is increasing compared to before, and companies are succeeding in retaining their workforce for longer.

This survey is based on data from 1,060 Indian companies and 45 different industries. Its results clearly indicate that India’s economy remains stable and strong despite global uncertainties.

Companies Focus on Upskilling and Development

The report states that when the workforce is stable, companies have a better opportunity to focus on employee skill development and training. In the future, companies will focus on strengthening their teams through upskilling programs to prepare them for future needs.

One thing is clear from this report: if you work in the corporate sector, 2026 could prove to be a year of salary increases for you. Even though challenges remain globally, companies in India are still focused on talent retention and are ready to offer employees better packages.