India Inc to Offer 9% Pay Hike in 2026, Led by Real Estate and NBFCs: Aon Report
Aon’s latest Salary Increase Survey reveals that Indian companies are expected to provide an average salary increment of 9% in 2026. The real estate and non-banking financial services sectors are projected to see the highest growth.
Salary IncreaseReal EstateNbfcsAon ReportIndia IncReal EstateOct 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 projected average salary increase for Indian companies in 2026?
The projected average salary increase for Indian companies in 2026 is around 9%, according to Aon’s latest Salary Increase Survey.
Which sectors are expected to see the highest salary growth in 2026?
Real estate and infrastructure sectors are expected to see the highest salary growth at 10.9% in 2026.
What is the projected salary increase for the non-banking financial services sector?
The non-banking financial services sector is projected to record a salary increase of around 10% in 2026.
How is the technology sector performing in terms of salary increases?
The technology sector is witnessing moderation in pay hikes, with technology consulting firms expected to register the lowest projected increase at around 6.8%.
What factors are driving the stable salary outlook in India?
The stable salary outlook in India is driven by the country’s resilient labor market, a maturing compensation structure, and a focus on targeted rewards and productivity-linked bonuses.
Related News Articles
Pune's Nightlife Takes a Hit: Under-25s Barred from Popular Clubs
Following the Porsche accident case
Domestic Abuse in Pune: Woman Abducted by Husband and In-Laws, Police Investigation Underway
A shocking incident of domestic violence has come to light in Pune, where a woman was kidnapped by her husband and in-laws, sparking a police investigation.
Schneider Electric Revolutionizes India's Real Estate Market with Innovative Solutions
Schneider Electric unveiled pioneering Home Energy Management Solutions at BuildCon 2024, catering to India's growing demand for smart and sustainable homes.
US Real Estate Mogul Brandon Miller's Shocking Debt Revealed After Tragic Death
Brandon Miller, a wealthy real estate developer, had only $8,000 in his bank account despite owing $34 million in debt. His financial struggles were largely due to his lavish lifestyle and massive loans on his Hamptons mansion.
PVR INOX to Shut Down 70 Underperforming Screens in FY25
The company plans to explore the potential monetisation of non-core real estate assets located in prime areas, including Mumbai, Pune, and Vadodara.
Real Estate Slump in Indore During Diwali: High Prices and Excess Inventory Dampen Sales
Despite the festive season of Diwali, real estate sales in Indore remain sluggish, primarily due to high property prices and an oversupply of inventory.