India’s Average Salary To Rise 9.1% In 2026, Up from 8.9% In 2025; Real Estate, NBFCs Lead With Over 10% Hikes

Mumbai: India’s average salary is expected to grow by 9.1 percent in 2026, slightly higher than the 8.9 percent rise seen in 2025, according to a report by global professional services firm Aon plc. The findings show steady improvement in pay trends as companies focus on skilled talent and workforce stability.

Industry-Wise Salary Trends

Salary growth will not be the same across all sectors. Real estate and infrastructure companies are likely to offer the highest average hikes at 10.2 percent. Non-banking financial companies (NBFCs) are close behind with projected increases of 10.1 percent.

Retail employees may see salary growth of around 9.5 percent, while life sciences firms are expected to offer 9.4 percent hikes. Global capability centres are projected to give 9.3 percent increases. Funds and asset management firms could see salary growth of 8.5 percent.

On the other hand, technology consulting and services is expected to record the slowest salary growth at 6.6 percent. However, sectors like automotive and vehicle manufacturing, engineering design services, engineering and manufacturing, and retail are expected to offer slightly above-average pay rises.

Attrition Continues to Fall

The report, which studied over 1,400 organisations across 45 industries, also highlighted improving employee retention. Attrition dropped to 16.2 percent in 2025, compared to 17.7 percent in 2024 and 18.7 percent in 2023.

This shows that companies are hiring more carefully and focusing on keeping employees engaged. Businesses are putting more effort into career growth, skill development and workplace stability.

Focus on Skills and Labour Code Changes

Companies are investing more in technology, engineering and customer-facing roles as competition for skilled workers increases.

The report also noted that India’s newly notified labour codes are leading companies to review salary structures. According to Amit Kumar Otwani, Associate Partner, Talent Solutions, India at Aon, the standard definition of wages and wider social security coverage are pushing employers to rethink compensation plans. He stressed that clear communication will be important to maintain employee trust.

Overall, stable hiring, better retention and careful planning are helping companies prepare for long-term growth.