October 7, 2025

Ready for a salary boost? India’s paychecks are gearing up for a sweet 9% increase in 2026! This promising rise comes thanks to strong local spending, smart investments, and solid government support, even though the world economy is slowing down. That’s according to AON’s latest 'Annual Salary Increase and Turnover Survey 2024-25 India', which polled 1,060 organizations from 45 industries. The projected 9% hike is a bit higher than the 8.9% salary rise India saw in 2025. Big winners in the salary game next year include the real estate and infrastructure sectors, expecting the highest increase of 10.9%. Close behind are non-banking financial companies (NBFCs) with a 10% hike. Other top sectors getting a pay lift are automotive manufacturing (9.6%), engineering design services (9.7%), retail (9.6%), and life sciences (9.6%). This shows companies are betting on key talents to keep India’s economy roaring. Roopank Chaudhary, partner and rewards consulting leader at AON India, said, “India's growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading the way in talent investment and businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability, even amid global uncertainty.” But that’s not all. The survey reveals a heartening trend — overall attrition rates (the number of people quitting jobs) are dropping. The rate fell to 17.1% in 2025, down from 17.7% in 2024 and 18.7% in 2023. This means employees are staying longer, and companies are getting better at keeping their talent. With workers sticking around, companies can now focus on training and upskilling their people. This helps build a strong talent pipeline and prepares businesses for future challenges. So, folks, whether you’re job hunting or climbing the career ladder, 2026 looks more rewarding and stable in the Indian job market!

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Tags: Salary increase, Attrition rate, India economy, Aon survey, 2026 salary growth, Workforce stability,