Indian professionals are set for a major boost in 2026, with salary growth projected to reach 9%, according to Aon plc’s Annual Salary Increase and Turnover Survey 2025-26 India.
This growth reflects a steady economic recovery, increasing demand for skilled talent, and strong investments across key sectors. The survey, now in its 31st year, analysed data from over 1,060 companies across 45 industries, providing comprehensive insights into compensation trends, workforce movements, and sector-specific opportunities.
The 9% increase marks a slight uptick from the 8.9% salary growth observed in 2025, demonstrating resilience despite a slowing global economy. India’s robust domestic consumption, strong investments, and proactive policy measures are contributing to a positive outlook for salary increases.
Industry-Wise Salary Trends
Salary growth is expected to vary across sectors, with real estate/infrastructure and non-banking financial companies (NBFCs) leading the pack. Other industries such as automotive, engineering design services, retail, and life sciences are also poised to see above-average increases, fueled by sustained investments in critical talent pools.
Projected Salary Increases Across Industries:
- Overall India: 2025-8.9% | 2026-9.0%
- Real Estate/Infrastructure: 2025-10.5% | 2026-10.9%
- NBFCs: 2025-9.8% | 2026-10.0%
- Automotive: 2025-9.8% | 2026-9.6%
- Life Sciences: 2025-9.6% | 2026-9.6%
- E-commerce: 2025-8.9% | 2026-9.2%
Declining Attrition Signals Stability
The survey also indicates a decrease in employee attrition rates, which fell to 17.1% in 2025 from 17.7% in 2024. This decline points to a more stable talent landscape, allowing companies to invest in upskilling and development initiatives. As Roopank Chaudhary, Partner and Rewards Consulting Leader at Aon, notes, “India’s growth story remains strong, supported by infrastructure investments and policy measures.”
Impact of Policy Reforms
Tax reforms are also contributing to the positive outlook, with simpler compliance and rationalized tax rates enhancing business efficiency. Amit Kumar Otwani, Associate Partner at Aon, states, “Companies aligning their rewards strategies with these changes are better positioned to attract and retain top talent.”
With key industries leading the way and lower attrition rates, companies are focusing on workforce stability, upskilling, and strategic talent investments, ensuring a solid foundation for growth in 2026 and beyond.