Aon’s ‘Annual Salary Increase and Turnover Survey 2025-26 India’ projected that salaries in India will likely increase by 9% in 2026.
Citing resilient consumption, investment, and policy support despite global economic growth uncertainties as reasons behind the number, the survey noted that the 2026 projection represents a slight increase from the 8.9% salary growth observed in 2025.
Despite headwinds, India’s economy remained resilient, supported by strong domestic consumption, investments and policy measures, the survey stated. The salary increase, as per Aon, will vary across industries, with some projections being as follows:
- Real estate/infrastructure: 10.9%
- Non-banking financial companies: 10%
- Automotive/vehicle manufacturing: 9.6%
- Engineering design services: 9.7%
- Retail: 9.6%
- Life Sciences: 9.6%
The numbers, as per the report, highlight the continued investments in critical talent pools.
“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 Aon survey also reported that the overall attrition rate has decreased to 17.1% in 2025, from 17.7% in 2024 and 18.7% in 2023. This gradual decline, the survey stated, points to a more stable talent landscape, with companies experiencing improved employee retention.
As the workforce becomes more settled, he survey elaborated that companies are well-positioned to invest in targeted upskilling and development programmes, ensuring they can build a resilient talent pipeline and prepare for future business needs, according to the survey.
