India Salary Growth 2026: Top Sectors Set to Surge
India’s workforce is heading into 2026 with optimism. Salaries are projected to rise by 9%, according to Aon’s Annual Salary Increase and Turnover Survey 2025–26. This marks a slight uptick from 2025’s 8.9% growth, signaling resilience despite global economic challenges. With strong domestic demand, infrastructure investments, and policy reforms, sectors like real estate, NBFCs, and life sciences are expected to offer the biggest pay hikes.
Salary Growth Trends Across India
The survey analyzed data from over 1,060 companies across 45 industries. It revealed that while overall salary growth is steady, some sectors are pulling ahead. Real estate/infrastructure is projected to grow by 10.9%, while NBFCs follow closely at 10%. These increases reflect strategic hiring and compensation planning in high-demand areas.
Top Sectors for Salary Growth in 2026
Sector | 2025 Growth | 2026 Projection |
---|---|---|
Real Estate/Infrastructure | 10.5% | 10.9% |
NBFCs | 9.8% | 10.0% |
Engineering Design Services | 9.6% | 9.7% |
Life Sciences | 9.6% | 9.6% |
Retail | 9.0% | 9.6% |
E-commerce | 8.9% | 9.2% |
Automotive Manufacturing | 9.8% | 9.6% |
These sectors are investing heavily in skilled talent, especially in cities like Pune, Chennai, Ahmedabad, and Visakhapatnam.
Declining Attrition Means Stability
Attrition rates are falling—from 18.7% in 2023 to 17.1% in 2025. This signals a more stable job market. Companies are now focusing on upskilling, retention, and long-term workforce planning. With fewer employees leaving, organizations can build stronger teams and reduce hiring costs.
Real Estate & NBFCs Lead the Pack
Real estate and NBFCs are not just offering higher salaries—they’re also creating more jobs. These sectors are expanding rapidly, driven by urban development and financial inclusion. In Hyderabad, Mumbai, and Delhi NCR, demand for skilled professionals in these industries is at an all-time high.
Life Sciences & Engineering Design Stay Strong
Life sciences and engineering design services continue to show robust growth. With global pharma investments and tech-driven design projects, these sectors are attracting top talent. Bengaluru and Hyderabad are emerging as key hubs for biotech and engineering innovation.
Retail & E-commerce: Rising Stars
Retail and e-commerce are bouncing back post-pandemic. With festive seasons and digital shopping trends, companies are hiring aggressively. Salary hikes in these sectors reflect the need for skilled supply chain managers, digital marketers, and customer experience professionals.
Impact of Tax Reforms on Compensation
Recent tax reforms have simplified compliance and rationalized rates. This is helping companies optimize their compensation strategies. Sectors like FMCG and automotive are aligning their rewards with policy changes to attract top talent.

Technology Sector Faces Slowdown
Interestingly, technology consulting and services are seeing slower growth—just 6.8% in 2026. This may be due to global headwinds and cautious hiring. However, tech platforms and product companies are still offering competitive packages, especially in Tier 1 cities.
Strategic Talent Investments Ahead
With declining attrition and rising salaries, companies are investing in upskilling. Training programs, leadership development, and digital literacy are becoming central to HR strategies. This ensures long-term growth and employee satisfaction.
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