India Inc. plans 9% average salary hike in 2026, real estate and NBFCs lead
The Aon survey covering 1,060 companies across 45 industries highlights improved workforce stability with attrition declining to 17.1% in 2025.
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India Inc. is projected to hike salaries on average by 9 per cent in 2026, with the real estate and NBFC sectors topping the charts, according to Aon’s latest survey. This is a tad higher than the 8.9 per cent salary growth observed in 2025. Aon’s Annual Salary Increase and Turnover Survey FY25-26 noted that, even as global economic growth witnesses a slowdown, India’s economy remains resilient, aided by strong domestic consumption, investments, and policy measures.
At 10.9 per cent, the real estate and infrastructure sector is expected to see the highest salary increase, followed by non-banking financial companies (10 per cent).
Engineering design services (9.7 per cent), automotive and vehicle manufacturing (9.6 per cent), retail (9.6 per cent) and life sciences (9.6 per cent) are also expected to continue rolling out slightly higher salary increases compared to other sectors in 2026, reflecting continued investment in critical talent pools, the survey added.
E-commerce, FMCG, consumer durables, engineering and manufacturing, global capability centres, technology platforms, and product sectors are also likely to offer marginally higher salaries than the average. However, the technology consulting and services sector is expected to see an average increase of 6.8 per cent in 2026, compared to the 7 per cent salary growth observed in 2025.
Workforce stability
“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,” said Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions for India at Aon.
The study, which analysed data from 1060 companies across 45 industries, shows that the overall attrition rate has declined to 17.1 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent in 2023. This reflects a more stable talent landscape with India Inc. witnessing improved employee retention.
‘Tax reforms’
“Recent tax reforms are transforming India’s business landscape by incentivising demand and enabling domestic consumption, especially for consumer goods and automotive sectors.Simpler compliance and rationalised tax rates are boosting efficiency. Companies that align their rewards strategies with these changes will be best positioned to attract top talent,” said Amit Kumar Otwani, associate partner, Talent Solutions for India at Aon..
Published on October 7, 2025
