India Inc to hand out 9% pay hike in 2026, led by real estate and NBFCs: Aon Report

India Inc is expected to roll out an average salary increase of around nine percent in 2026, according to Aon’s latest Salary Increase Survey. The survey reflects a cautiously optimistic sentiment among employers as they balance strong domestic demand with global economic uncertainty.

The findings show that salary increments are holding steady compared to this year’s average increase of 9.1%. Despite macroeconomic headwinds and concerns over inflation, Indian companies continue to signal confidence in business growth and talent retention.

Among the 45 sectors surveyed, real estate and infrastructure are expected to see the highest salary growth at 10.9% in 2026. The non-banking financial services sector is also projected to record double-digit increases at around 10 percent, followed closely by engineering design services at 9.7%. Life sciences and automotive sectors are forecast to post a 9.6% hike, while retail, driven by post-pandemic consumption recovery, is likely to rise from nine percent to 9.6% next year.

However, the technology sector continues to witness moderation in pay hikes as global demand for IT services remains subdued. Technology consulting firms are expected to register the lowest projected increase at around 6.8%. FMCG, consumer durables, and manufacturing are expected to remain steady with salary growth between 9.1 and 9.5%, in line with industry averages.

Experts say the stable salary outlook reflects India’s resilient labor market and a maturing compensation structure. The focus is gradually shifting from aggressive pay hikes to targeted rewards, productivity-linked bonuses, and long-term retention programs. Organisations are also expected to continue prioritising digital skills, with pay premiums likely for roles in AI, cybersecurity, and data analytics.

Aon’s report highlights that while attrition levels have softened from their pandemic highs, competition for critical talent remains strong, especially in emerging sectors such as renewable energy, electric mobility, and financial technology.

Overall, the survey paints a picture of steady optimism in corporate India. As companies navigate a complex global landscape, salary budgets for 2026 reflect both confidence in India’s economic growth story and a pragmatic approach to managing costs. With inflation stabilising and hiring momentum expected to pick up in the first half of the year, India remains one of the few large economies where employers are maintaining near double-digit salary increases.