India Inc to Hand Out 9% Pay Hike in 2026, Led by Real Estate and NBFCs: Aon Report
The Aon Salary Increase Survey reveals that Indian companies are expected to provide an average salary hike of 9% in 2026, with real estate and non-banking financial companies leading the pack.
Salary HikeReal EstateNbfcsAon ReportIndia IncReal Estate NewsOct 07, 2025
The findings show that salary increments are holding steady compared to this year’s average increase of 9.1%. Despite macroeconomic headwinds and concerns over inflation, Indian companies continue to signal confidence in business growth and talent retention.
Among the 45 sectors surveyed, real estate and infrastructure are expected to see the highest salary growth at 10.9% in 2026. The non-banking financial services sector is also projected to record double-digit increases at around 10 percent, followed closely by engineering design services at 9.7%. Life sciences and automotive sectors are forecast to post a 9.6% hike, while retail, driven by post-pandemic consumption recovery, is likely to rise from nine percent to 9.6% next year.
However, the technology sector continues to witness moderation in pay hikes as global demand for IT services remains subdued. Technology consulting firms are expected to register the lowest projected increase at around 6.8%. FMCG, consumer durables, and manufacturing are expected to remain steady with salary growth between 9.1 and 9.5%, in line with industry averages.
Experts say the stable salary outlook reflects India’s resilient labor market and a maturing compensation structure. The focus is gradually shifting from aggressive pay hikes to targeted rewards, productivity-linked bonuses, and long-term retention programs. Organisations are also expected to continue prioritising digital skills, with pay premiums likely for roles in AI, cybersecurity, and data analytics.
Aon’s report highlights that while attrition levels have softened from their pandemic highs, competition for critical talent remains strong, especially in emerging sectors such as renewable energy, electric mobility, and financial technology.
Overall, the survey paints a picture of steady optimism in corporate India. As companies navigate a complex global landscape, salary budgets for 2026 reflect both confidence in India’s economic growth story and a pragmatic approach to managing costs. With inflation stabilising and hiring momentum expected to pick up in the first half of the year, India remains one of the few large economies where employers are maintaining near double-digit salary increases.
Frequently Asked Questions
What is the expected average salary increase in 2026 for Indian companies?
The expected average salary increase in 2026 for Indian companies is around 9%.
Which sectors are expected to see the highest salary growth in 2026?
Real estate and infrastructure are expected to see the highest salary growth at 10.9% in 2026, followed by the non-banking financial services sector at around 10%.
Why is the technology sector expected to see a lower salary hike?
The technology sector is expected to see a lower salary hike due to subdued global demand for IT services, with technology consulting firms projected to register the lowest increase at around 6.8%.
What are the key factors driving the steady salary outlook in India?
The key factors driving the steady salary outlook in India include a resilient labor market, a maturing compensation structure, and a focus on targeted rewards and long-term retention programs.
How is the competition for critical talent in emerging sectors expected to impact salary increases?
Competition for critical talent in emerging sectors such as renewable energy, electric mobility, and financial technology remains strong, which is expected to influence salary increases and attract top talent.
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