India’s Salary Growth Likely To Hold At 9.1 Per Cent In 2026-27 Despite Global Uncertainty: Aon Survey

Salaries in India are expected to increase by 9.1% in 2026-27, with non-banking financial companies (NBFCs), energy, real estate and infrastructure sectors likely to offer the highest pay hikes. The growth projection comes despite geopolitical uncertainties and risks surrounding global trade, according to a survey released by global professional services firm Aon.

The Annual Salary Increase and Turnover Survey for India 2026-27 analysed responses from more than 1,200 organisations across 45 industries. The findings suggest that companies remain willing to invest in employees even as they keep a close watch on costs.

NBFCs To Lead Salary Hikes

NBFCs are expected to offer the highest salary increases in 2027 at 10.1%, followed by the energy sector at 9.9%. Real estate and infrastructure companies are projected to offer hikes of 9.8%.

The projections indicate that demand for skilled professionals remains strong in these sectors. While overall salary growth is expected to remain stable, employers appear to be focusing more on retaining employees with specialised skills rather than offering large pay increases across the board.

“Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline,” said Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India, Aon.

Employee Attrition Rises To 18%

The survey also found that overall employee attrition increased to 18% in 2026, compared with 16.2% in 2025 and 17.1% in 2024. The rise suggests that competition for skilled employees continues despite relatively stable salary budgets, Hindustan Times reports.

Employers are responding by offering targeted salary increases, particularly for employees with skills that are difficult to find and those working in critical roles. The trend highlights the growing importance of employee retention as companies try to balance workforce requirements with financial discipline.

AI Skills Command Higher Pay

Artificial intelligence (AI) is also changing how companies hire, train and reward employees. According to the survey, established adoption of AI productivity tools increased from 46.1% in 2025 to 56% in 2026, with usage rising across every job category measured.

Around 60% of employers are prioritising employee upskilling, while investments in agentic AI and demand for AI-related skills continue to grow. Companies are also offering pay premiums of about 10% more for roles involving AI, machine learning and data science compared with 2025.

The findings point to a growing advantage for professionals with specialised technology skills. As businesses expand their use of AI, employees who can work with these technologies are likely to remain in demand.

“The rapid adoption of AI signals a shift from experimentation to enterprise-wide application. The next priority is translating that momentum into measurable productivity and growth. Employers that establish credible baselines, identify the capabilities that create differentiated value and align workforce investment accordingly will be best placed to realise AI’s full potential,” Chaudhary said.

Wage Code Compliance May Push Up Costs

The survey also examined how companies are preparing for the Wage Code. It found that 65.4% of employers are already compliant, while another 20.9% expect to achieve compliance within six months.

However, 42.8% of employers anticipate an increase of at least 1% in payroll costs. This indicates that companies may face additional financial pressure as they adjust their salary structures and employment practices to meet regulatory requirements.

“Progress on Wage Code readiness is encouraging, but compliance is only the first step. Employers must assess workforce and cost implications, align changes with their rewards philosophy and communicate them clearly to maintain pay competitiveness and workforce trust, while strategically investing in talent amid rising AI adoption and evolving skill requirements,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon.

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The survey presents a picture of a job market where salary growth remains steady, but competition for talent is becoming more selective. With rising attrition, growing demand for AI skills and possible increases in payroll costs, employers face the challenge of retaining skilled workers while managing expenses.

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