India Salary Hike 2026: 9% Rise Expected, Real Estate and NBFCs Lead Growth
Salaries in India are projected to rise by 9% in 2026, driven by strong domestic consumption and policy support. Real estate and non-banking financial companies are expected to lead the growth, with attrition rates declining.
Salary HikeReal EstateNbfcEconomic GrowthAttritionReal Estate NewsOct 08, 2025
The nine per cent projection for 2026 marks a slight increase from the actual 8.9 per cent salary growth observed in 2025, even as global economic growth slows, according to global professional services firm AON's 'Annual Salary Increase and Turnover Survey 2024-25 India.
Despite headwinds, India's economy remained resilient, supported by strong domestic consumption, investments, and policy measures, it noted.
The 30th edition of AON's 'Annual Salary Increase and Turnover Survey 2024-25 India is based on inputs from 1,060 organisations across 45 industries.
Further, its survey stated that salary increases are projected to vary across industries, with real estate/infrastructure (10.9 per cent) and non-banking financial companies (10 per cent) seeing the highest increases in 2026.
The automotive or vehicle manufacturing is expected to witness 9.6 per cent salary growth, followed by engineering design services (9.7 per cent), retail (9.6 per cent), and life sciences (9.6 per cent), reflecting continued investment in critical talent pools.
'India's growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty,' said Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions for India at Aon.
Further, the survey revealed that overall attrition rates have declined to 17.1 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent in 2023.
This gradual decline points to a more stable talent landscape, with organisations experiencing improved employee retention, it stated.
As the workforce becomes more settled, companies are well-positioned to invest in targeted upskilling and development programmes, ensuring they can build a resilient talent pipeline and prepare for future business needs, according to the survey.
Frequently Asked Questions
What is the projected salary increase in India for 2026?
The projected salary increase in India for 2026 is 9%, according to a survey by AON.
Which sectors are expected to see the highest salary increases in 2026?
Real estate/infrastructure and non-banking financial companies (NBFCs) are expected to see the highest salary increases, at 10.9% and 10% respectively.
What factors are contributing to the salary increases in India?
Strong domestic consumption, investments, and policy measures are contributing to the salary increases in India.
How have attrition rates changed in recent years?
Overall attrition rates have declined to 17.1% in 2025, down from 17.7% in 2024 and 18.7% in 2023.
What does the decline in attrition rates indicate for Indian companies?
The decline in attrition rates indicates a more stable talent landscape, with organisations experiencing improved employee retention.
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.