Salaries in India likely to rise 9% in 2026 amid global economic growth uncertainties: Survey

Salaries in India are likely to rise by 9% next year, on the back of resilient consumption, investment and policy support despite global economic growth uncertainties, a survey said on Tuesday.

The 9% projection for 2026 marks a slight increase from the actual 8.9% 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 2025-26 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%) and non-banking financial companies (10%) seeing the highest increases in 2026.

The automotive or vehicle manufacturing is expected to witness 9.6% salary growth, followed by engineering design services (9.7%), retail (9.6%) and life sciences (9.6%), 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% in 2025, down from 17.7% in 2024 and 18.7% 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.