India Likely to See 9% Salary Hike in 2026; Real Estate and NBFCs to Lead Growth: Aon Survey

Salaries in India are expected to rise by an average of 9% in 2026, according to Aon’s Annual Salary Increase and Turnover Survey 2025-26. The study, which gathered data from over 1,060 companies across 45 industries, reflects a positive sentiment among employers amid signs of a stabilizing job market.

The survey indicates that the real estate and infrastructure sector will record the highest salary hike at 10.9%, followed by non-banking financial companies (NBFCs) at 10%. Meanwhile, industries such as engineering design services, automotive manufacturing, retail, and life sciences are also projected to offer strong increments ranging between 9.5% and 9.7%.

Aon’s data further reveals that employee attrition has slightly eased, dropping to 17.1% in 2025 from 17.7% in 2024, suggesting greater workforce stability. Companies are reportedly focusing more on strategic compensation planning, talent retention, and upskilling initiatives to sustain productivity amid evolving business demands.

Roopank Chaudhary, Partner and Rewards Consulting Leader at Aon India, stated that organizations are adopting a balanced approach to pay hikes—rewarding key talent while maintaining cost efficiency. He emphasized that despite global economic challenges, India’s labor market remains resilient, driven by strong domestic demand and a growing emphasis on skills related to digital transformation and sustainability.

The report highlights optimism across industries, signaling steady employment and salary growth heading into 2026.