Aon Predicts 9% Salary Growth in India for 2026, with Sector Variations
The Aon Annual Salary Increase and Turnover Survey 2025-26 India, in its 31st year, has analyzed data from over 1,060 companies across 45 industries. The report reveals a 9% salary growth expected in 2026, with variations across sectors.
The 2025 salary hike was one of the lowest since 2010, influenced by easing inflation. However, a rebound is expected in 2026, with automotive/vehicle manufacturing, engineering design services, retail, and life sciences projected to have slightly higher increases. In contrast, technology consulting and services are forecasted to see the lowest hike at 6.8%.
Trade disruptions and advances in AI and automation are reshaping job roles and skills, introducing new vulnerabilities. Overall attrition rates have declined to 17.1% in 2025. Organizations are strategically allocating higher budgets to high performers and niche skill sets. Real estate/infrastructure and NBFCs are expected to see the highest increases at 10.9% and 10% respectively.
The Aon survey predicts a 9% salary growth in India for 2026, with variations across sectors. While some industries like automotive and retail are expected to see higher increases, technology consulting and services may lag behind. The report also highlights the impact of technological changes and strategic pay decisions on employment trends.
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