- Real Estate and NBFCs projected to have the highest salary increases
- Attrition stabilises, returning to pre‑COVID levels
NEW DELHI, Feb. 24, 2026 – Aon plc (NYSE: AON), a leading global professional services firm, projects that salaries in India will increase by 9.1 percent in 2026, according to its Annual Salary Increase and Turnover Survey 2025-26 India. Now in its 32nd edition, the survey is one of India’s most comprehensive rewards studies, analysing data from more than 1,400 organisations across 45 industries.
The projected 9.1 percent increase reflects a slight uptick from the actual 8.9 percent increase recorded in 2025, signalling sustained salary movement.
Salary increases are projected to vary by industry, with the real estate and infrastructure sectors and non- banking financial companies (NBFCs) expected to deliver the highest salary growth in 2026. The automotive and vehicle manufacturing, engineering design services, engineering and manufacturing and the retail sectors are also projected to offer slightly higher-than-average salary hikes. These trends underscore that employers in India are focusing on strengthening technology, engineering and customer- facing capabilities as organisations compete for specialised talent in an evolving market environment.
| Industry | Actual Salary Increases (2025) (%) | Projected Salary Increases (2026) (%) |
| Overall India | 8.9 | 9.1 |
| Automotive/Vehicle Manufacturing | 9.8 | 9.9 |
| Banking | 8.4 | 8.8 |
| Chemicals | 8.5 | 8.3 |
| E-commerce | 8.7 | 8.8 |
| Energy (Oil/Gas/Power) | 9.3 | 9.4 |
| Engineering Design Services | 10 | 9.9 |
| Engineering/Manufacturing | 9.4 | 9.5 |
| Fast Moving Consumer Goods | 8.9 | 9.1 |
| Industry | Actual Salary Increases (2025) (%) | Projected Salary Increases (2026) (%) |
| Funds and Asset Management | 9.7 | 8.5 |
| Global Capability Centres | 9.2 | 9.3 |
| Life Insurance | 8.2 | 8.2 |
| Life Sciences | 9.3 | 9.4 |
| NBFCs | 9.7 | 10.1 |
| Real Estate/Infrastructure | 10.5 | 10.2 |
| Retail | 9 | 9.5 |
| Technology Consulting and Services | 7 | 6.6 |
| Technology Platform and Products | 9.2 | 9.4 |
“India is entering the next phase of its growth story on a stronger macro foundation,” said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India, for Aon. “Resilient domestic demand, moderating inflation and new trade agreements are contributing to a positive medium‑term outlook, even as firms navigate geopolitical uncertainty. Stronger salary growth in sectors such as real estate, NBFCs and manufacturing underscores employers’ intent to invest in critical talent while building more sustainable compensation strategies.”
The survey shows that overall attrition declined to 16.2 percent in 2025, returning close to pre‑COVID levels and extending a downward trend over the past three years. Attrition stood at 17.7 percent in 2024 and 18.7 percent in 2023, indicating steady improvement in employee retention across industries.
This normalisation reflects more targeted hiring practices, and a greater emphasis on employee engagement, career mobility and workplace stability. With a more stable and engaged workforce and a healthier underlying talent environment, organisations are better positioned to focus on targeted upskilling, invest in future‑critical capabilities and build resilient talent pipelines to support long‑term growth.
With India’s labour codes now notified, organisations are navigating one of the most significant regulatory transitions in decades,” said Amit Kumar Otwani, associate partner, Talent Solutions, India, for Aon. “The standardised definition of wages and expanded social security provisions are prompting many employers to reassess and restructure compensation. Clear communication around these changes will be critical to maintaining workforce trust and stability.”
