India Salary Growth: India leads the way in salary growth. According to the survey, average salaries are expected to increase by 9.1% in 2026, which is higher than in 2025 and better than in developed countries.

Employees in India are in trouble.

Salary Hike 2026: India is leading the way in salary growth globally. Salaries are projected to grow by an average of 9.1% in 2026, slightly higher than 8.9% in 2025. This is significantly ahead of developed countries like the US (4.3%) and the UK (4.1%), according to Aon's Salary Growth and Turnover Survey 2025-26.

The report states that sectors such as real estate, infrastructure, and financial services (NBFCs) are seeing the highest salary increases due to rising domestic demand. Attrition rates have declined to 16.2%, a decrease from last year. 

Big jump in salary hike in India

According to experts, junior employees are receiving the highest salary increases, averaging 9.6%. Experts say that companies are focusing more on retaining quality employees, especially junior and new employees, and they offer them good salaries to prevent them from leaving.

Rupank Chaudhary, Partner and Rewards Consulting Leader (Talent Solutions, India), Aon, said that despite the ongoing global instability, India's domestic economy is quite strong, hence job valuations in India are much higher than in other big countries.

How much increase in which areas

The automobile and vehicle manufacturing sector is projected to see the highest growth, reaching 9.8% in 2025 and 9.9% in 2026. Next, the banking sector saw salary growth of approximately 8.4% and is now projected to increase to 8.8%. The chemical and engineering sector also saw growth of approximately 8.5% and is now projected to increase to 8.8%. However, the situation is different in the tech consulting sector, where IT services have the lowest salary growth rate, at approximately 6.8%. 

Attrition rates and expert opinion

The survey shows that overall employee attrition rates are steadily declining, falling to 16.2% in 2025, close to pre-COVID-19 levels. This rate was 17.7% in 2024 and 18.7% in 2023. 

Experts say that companies are now focusing more on skills, performance, and career growth rather than just salary. Therefore, instead of frequently changing jobs, employees are now looking for jobs that offer a good salary increase, a clear understanding of their work, and proper recognition for their good work.