After the Diwali bonus season, India’s job market is set for another boost — an average salary hike of 9% in 2026, slightly higher than the 8.9% increase in 2025.
According to a report by Aon PLC, this rise is being driven by strong domestic demand, growing infrastructure investment, and supportive government policies.
Among all industries, the real estate and non-banking financial companies (NBFCs) sectors are expected to see the highest salary hikes, at around 10.9% and 10% respectively, making them the top-paying sectors for employees next year.
Attrition Rate Declines
The report also highlights that the attrition rate has dropped to 17.1% in 2025, lower than in previous years.
This decline indicates higher employee satisfaction due to improved pay, work environment, and benefits.
Rupank Chaudhary, Partner at Aon, said that companies are now focusing on long-term stability and growth, not just salary hikes, to retain skilled employees.
Sector-Wise Salary Outlook
Apart from real estate and NBFCs, several other sectors are also expected to witness healthy pay growth:
Automotive, engineering design, life sciences, retail, and technology platforms may see salary hikes of around 9%.
Technology consulting and services may record a slightly lower increase compared to others.
Positive Signs for Employees and the Economy
This consistent rise in wages is expected to enhance financial stability for Indian employees and reflect strong economic momentum.
Despite global uncertainties, Indian companies continue to invest in better salaries and benefits to attract and retain top talent, highlighting the country’s resilient job market and growing economy.
