India Inc. is expected to receive an average 8.9% increment in 2026. According to a latest study conducted by Omam Consultants, FMCG and the automobile industry are expected to lead the salary increment cycle in 2026, with projected hikes of around 10% or more, driven by strong rural demand, consumption growth and sustained innovation.
The study titled Salary & Attrition Trends: Increment Outlook Report 2026 further found that pharmaceuticals, e-commerce, engineering and manufacturing are also set to offer healthy increments in the range of 9–9.5%.
In contrast, the IT sector is witnessing the sharpest moderation in pay growth, with average increments projected to decline to about 7%. The report attributes this to a combination of selective hiring, skill-based demand and a growing emphasis on performance-linked rewards over uniform salary increases. IT-enabled services, however, are expected to maintain stable increments of around 8%, supported by AI adoption, cloud-led transformation and global delivery requirements.
Interestingly, attrition levels in 2025 are estimated at 13–14%, with IT services, BFSI, e-commerce and retail emerging as key pressure points. The report highlights that attrition in high-demand roles is crossing 18–20% in some sectors, driven by compensation mismatches, limited career progression, burnout and competition from the GCCs.
Recently, yet another study by Mercer found similar insights. It found that Indian workers are expecting an average salary hike of about 9% in 2026.
