Good News on Salary Hikes Throughout India 2026. To all the employees in the workforce, it seems like there is more good news on the Diwali front. 2026 Average Salary Growth is now expected to be 9% in India. This Diwali celebration is much encourageable as the 2025 Average Salary Growth was 8.9%. With the global economy conditions being weak, the Indian economy is performing well according to global standards. This is due to Growth of Indian economy due to increase in consumption, investments and proactive government policies.9% Salary Growth Expected in India 2026. As per the "Annual Salary Increase and Turnover Survey 2024-25 India" by Aon, the 2025 Average Salary Growth is 8.9% therefore the 2026 Average Salary Growth is now expected to be 9%. The report goes on to state that there is a global economic slowdown and weak global economy conditions. However, India is performing well according to global standards due to increased consumption, investments and government policies.What sectors in the Indian economy will see the highest Salary Hikes in 2025 and 2026? As per Aon’s report, there will be no uniformity in the economic sectors when it comes to Salary Hikes. This is due to the fact that certain industries will see the highest economic growth due to the expected Salary Hikes in 2026.For the real estate and infrastructure sectors, Compensation is predicted to rise by around 10.9%, while for Non-Banking Financial Companies (NBFCs) it is anticipated to increase by around 10%. Other sectors for which strong salary growth is predicted include automobile manufacturing (9.6%), engineering design services (9.7%), retail (9.6%), and life sciences (9.6%). This demonstrates that organizations continue to devote resources to skilled employees. No one can deny that India's growth story is strong as it reflects on talent and Stability. “Aon India Partner Rupank Chaudhary” reiterates the point: “India's growth story remains strong. Government policy support and infrastructure investment are giving companies the confidence to grow. Companies are now focusing more on talent retention and long-term stability. Growth and stability cohorts are strategically aligned in salary and hiring frameworks across talent invested sectors, real estate and NBFCs.” Job changers are not so good for employees. Persistence and retention are more accurate terms to apply as the survey states that attrition decline is evident, with 2023 recording 18.7%, then moving to 17.7%, and finally 17.1 % for 2025. Employee retention is now more successful and streamlining workforce remains.This survey examines the position of the Indian economy based on the responses of 1,060 companies spanning 45 sectors and industries and finds the Indian economy to be stable and resilient, even during these times of global economic distress. A Focus on Stable Workforces and More Advanced Training A stable workforce permits the organization more opportunities to concentrate on more advanced training and employee development. In the long term, businesses will invest more resources into their workforce, preparing them with necessary skills for the future. This much is certain from this report: all of you working in the corporate sector, the year of 2026 will be a year of generous salary adjustments. There is no question that the global environment is still full of economic challenges, but Indian businesses will continue to prioritize talent retention, and will improve compensation and benefits.
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