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India Salary Growth: India is at the forefront of salary growth. According to a survey, average salaries are expected to rise by 9.1% in 2026—an increase over 2025 figures and a performance superior to that of developed nations.

Salary Hike 2026: Globally, India is leading the pack in terms of salary increments. Salaries are projected to rise by an average of 9.1% in 2026, a slight uptick from the 8.9% recorded in 2025. According to Aon's Salary Increase and Turnover Survey 2025-26, this figure places India significantly ahead of developed economies such as the United States (4.3%) and the United Kingdom (4.1%).

The report highlights that, driven by rising domestic demand within the country, sectors such as real estate, infrastructure, and financial services (specifically NBFCs) are witnessing the highest salary growth. Concurrently, the employee attrition rate has dropped to 16.2%, a decline compared to the previous year.

A Major Surge in Salary Growth in India

According to experts, junior-level employees are receiving the highest average salary increments, standing at 9.6%. Specialists note that companies are placing a greater emphasis on retaining high-caliber talent—specifically offering competitive salaries to junior and new hires to ensure they do not leave the organization.

Rupank Chaudhary, Partner and Rewards Consulting Leader (Talent Solutions, India) at Aon, stated that despite the ongoing global volatility, India's domestic economy remains robust; consequently, job valuations in India are significantly higher compared to other major economies.

Sector-wise Growth: Where Are the Increases?

The automobile and vehicle manufacturing sector has witnessed the most substantial growth, rising from 9.8% in 2025 to a projected 9.9% in 2026. Following closely is the banking sector, where salary increments—previously around 8.4%—are now estimated to rise to 8.8%. Meanwhile, the Chemicals and Engineering sectors also recorded a growth of approximately 8.5%, a figure that is now rising to 8.8%. However, the situation in the Tech Consulting sector stands apart, where the rate of salary growth in IT services is the lowest, hovering around 6.8%.

Attrition Rates and Expert Opinions

The survey reveals that, overall, the rate at which employees are leaving their jobs is steadily declining. In 2025, this figure dropped to 16.2%, thereby nearing pre-COVID-19 levels. This rate stood at 17.7% in 2024 and 18.7% in 2023.

Experts suggest that companies are now shifting their focus from merely offering high salaries to prioritizing skills, performance, and career growth. Concurrently, employees, too, are now seeking positions that offer substantial salary increments, provide a clear understanding of their work responsibilities, and ensure due recognition for their good performance.