Mumbai: According to a new report by Aon, salaries in India are expected to grow by 9 percent in 2026. This is slightly higher than the 8.9 percent increase seen in 2025. Even though the global economy is facing tough times, India’s economy is staying strong. Experts say this is because of good domestic demand, government policies, and high levels of investment.
Which Industries Will Give Bigger Hikes?
The Aon survey says that some sectors will offer bigger salary hikes than others. Real estate, infrastructure, and non-banking financial companies (NBFCs) are likely to give the highest increases in 2026. Other sectors like automobile manufacturing, engineering services, life sciences, and retail will also offer good hikes as they continue to invest in skilled workers and new projects.
Roopank Chaudhary from Aon said that businesses are planning salary increases in a smart way to ensure steady growth and keep their workforce happy, even when the global economy is not doing well.
Job Changes Are Slowing Down
The report also shows that fewer people are switching jobs now. The overall attrition rate — or the number of people leaving jobs — dropped to 17.1 percent in 2025, down from 17.7 percent in 2024 and 18.7 percent in 2023. This means employees are staying longer with their companies. Aon believes this gives businesses a great chance to focus on training and upskilling workers to build a stronger team for the future.
Tax Reforms Are Helping Businesses
According to Aon’s experts, recent tax reforms in India are making it easier for companies to operate. Lower tax rates and simpler compliance rules are especially helping industries like consumer goods and automotive. Companies that change their salary and benefits plans to match this new business environment will have an easier time hiring the best talent.
