Salary Hike 2026: India is leading in the matter of salary increase globally. Salaries are expected to increase by an average of 9.1% by 2026, which is slightly more than 8.9% in 2025. According to Aon’s Wage Growth and Turnover Survey 2025-26, this is far ahead of developed countries like the US (4.3 percent) and Britain (4.1 percent).

It has been said in the report that due to increasing domestic demand in the country, salaries are increasing the most in sectors like real estate, infrastructure and financial services (NBFC). At the same time, the attrition rate of employees has decreased to 16.2%, which is lower than last year.

Big jump in salary hike in India

According to experts, junior employees are getting the highest average salary of 9.6%. Experts say that companies are paying more attention to keeping good employees. Especially they give good salary to junior and new employees, so that they do not leave the job.

Rupank Chaudhary, Partner and Rewards Consulting Leader (Talent Solutions, India), Aon, said that despite the ongoing instability in the world, India’s domestic economy is very strong, hence job valuation in India is much higher than other big countries.

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How much increase in which areas?

The automobile and vehicle manufacturing sector has seen the highest growth, at 9.8% in 2025 and reaching 9.9% in 2026. After this, the salary increase in the banking sector was around 8.4% and now the salary increase is expected to increase to 8.8%. At the same time, about 8.5% growth was also recorded in the chemical and engineering sector, in which now an increase of 8.8% is being seen. However, the situation is different in the tech consulting sector, where IT services has the lowest salary growth rate, which is around 6.8%.

Attrition rates and experts’ opinions

The survey shows that overall the attrition rate among employees is continuously increasing. It will decline to 16.2% in 2025, reaching close to the pre-Covid-19 level. This rate was 17.7% in 2024 and 18.7% in 2023.

Experts say that now companies are paying more attention not just on salary but on skills, performance and career growth. So now, instead of changing jobs again and again, employees also look for such a job in which they get good salary increase, have a clear understanding of their work and their good work is properly recognized.

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