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India Salary Growth 2026: Companies delight their employees with bonuses on Diwali, but before that, another piece of good news has arrived. This news will directly impact your employees’ pockets. In fact, an average salary increase of 9 percent is expected in India in 2026, slightly higher than the 8.9 percent increase recorded in 2025.
Which sectors will see good increments?
According to a report by Aon PLC, sectors like real estate, infrastructure, and non-banking financial companies (NBFCs) will see the highest salary increases. This trend is not only a relief for employees but also indicates the country’s economic stability.
How much will salaries increase?
| Sector | Estimated Salary Growth (%) |
|---|---|
| Real Estate and Infrastructure | 10.9 |
| Non-Banking Financial Companies (NBFCs) | 10.0 |
| Automotive and Vehicle Manufacturing | 9.6 |
| Engineering Design Service | 9.7 |
| Engineering and Manufacturing | 9.2 |
| Retail | 9.6 |
| Life Science | 9.6 |
| Chemicals | 8.8 |
| E-commerce | 9.2 |
| FMCG | 9.1 |
| Global Capability Centers | 9.5 |
| Technology Platform and Product | 9.4 |
| Banking | 8.6 |
| Technology Consulting and Services | 6.8 |
The report also claims that job attrition rates in the country have declined. According to the report, the attrition rate is projected to reach 17.1 percent in 2025. Compared to 17.7 percent in 2024 and 18.7 percent in 2023, this rate will have significantly decreased in 2025.
The decline in attrition rates indicates that employees are receiving better working conditions and salaries. Rupank Chaudhary, Partner at Aon, said that sectors like real estate and NBFCs are investing the most in talent. Despite global uncertainty, companies are planning to offer stable and better salaries to their employees to maintain growth and strengthen their teams.
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