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Earlier this week, a study by Aon projected that salaries across India are set to rise by nine percent in 2026, led principally by the real-estate and non-banking financial company (NBFC) sectors. The research highlights robust demand for talent in those industries driven by government capital expenditure, strong institutional participation and a shift in workforce strategy. Attrition is also down, signalling improved employee retention. Meanwhile, sectors such as technology consulting appear more restrained, reflecting broader global headwinds.
According to Aon's latest research, salaries in India are expected to climb by nine percent during 2026, with the most significant increases anticipated in the real-estate and non-banking financial company sectors. The real-estate and infrastructure industry is forecast to record one of the highest salary hikes at 10.9 percent, up from around 10.5 percent in the previous year. This uplift is attributed to sustained momentum stemming from government-led capital expenditure, strong upcycles in both the commercial and residential real-estate segments, and rising institutional investment. Advertisement
Aon's partner and rewards consulting leader observed that such sectors are leading the way in talent investment as firms align their compensation strategies to support growth and maintain workforce stability. Simultaneously, NBFCs are anticipated to deliver about a 10 percent average salary increase in 2026, the highest among financial institutions, followed by asset-management firms at 9.5 percent and banking at 8.6 percent. Other sectors - including retail and life sciences - are expected to achieve healthy growth in salaries in the 9-9.7 percent range. In contrast, technology consulting and services are forecast to register more modest increases, at about 6.8 percent, as organisations face efficiency pressures and global uncertainties.
On the attrition front, the overall rate in India has fallen recently to 17.1 percent in 2025 - the lowest in five years and a sign that businesses are having greater success in retaining staff. Some involuntary exits have increased slightly to 4.6 percent, reflecting companies' efforts to right-size and restructure workforces driven by performance imperatives. The study also notes that India will continue to outpace major global economies in salary growth, with the U.S. and Germany projected to register average hikes of roughly 4.3 percent and 3.9 percent respectively. Aon suggests that India's strong domestic consumption, fiscal incentives and relatively low inflation are underpinning a revitalised labour market despite global headwinds.
Finally, the research observes a shift in corporate workforce planning from "just-in-time" models to "just-in-case" frameworks, reflecting greater emphasis on building resilience against supply-chain disruptions and adopting automation and AI technologies to streamline operations. Organised sectors, especially real-estate and financial services, are expected to continue their outperformance in salary growth by prioritising retention, stabilising inflation and aligning reward structures with strategic workforce needs.
While technology consulting may face tighter headwinds, the broader organised sectors appear well-positioned to benefit from the current labour-market dynamics. As employers pivot towards strategic workforce planning and sustainable growth models, the upward trajectory in salaries signals both optimism and transformation for India's employment landscape.
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