Real Estate and NBFCs projected to have the highest salary increases | Attrition stabilises, returning to pre‑COVID levels
Salaries in India on an average are projected to rise by 9.1 per cent in 2026, up from the 8.9 per cent increase recorded in 2025, as per the survey of Aon.
The study by Aon that analysed data from more than 1,400 organisations across 45 industries, finds that resilient domestic demand, moderating inflation and new trade agreements are contributing to a positive medium‑term outlook, even as firms navigate geopolitical uncertainty.
The real estate and infrastructure sectors and non- banking financial companies (NBFCs) expected to deliver the highest salary growth in 2026 at 10.2 per cent and 10.1 per cent, respectively.
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.
Banking, life insurance, funds and asset management, e-commerce, technology consulting and services, and chemicals are expected to offer lower than average salary hikes.
The survey shows that overall attrition declined to 16.2 per cent in 2025, returning close to pre‑COVID levels and extending a downward trend over the past three years. Attrition stood at 17.7 per cent 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.
