India’s Salary Growth Likely To Hold At 9.1 Per Cent In 2026-27 Despite Global Uncertainty: Aon Survey

Indian salaries are projected to rise by 9.1% in the 2026-27 fiscal year, according to a survey conducted by global professional services firm Aon. The prediction holds steady despite uncertainties in global trade and politics. Among the sectors, non-banking financial companies (NBFCs) are expected to lead the salary hikes, with a projected 10.1% increase in 2027, followed by the energy and real estate and infrastructure sectors at 9.9% and 9.8% respectively.

The survey, which gathered responses from over 1,200 organizations across 45 industries, suggests that companies remain committed to investing in employees while keeping a close eye on costs. However, employers are now focusing more on retaining employees with specialized skills rather than offering widespread salary hikes. Overall, employee attrition rose to 18% in 2026, up from 16.2% in 2025 and 17.1% in 2024, indicating that the demand for skilled professionals remains strong in these sectors.

Artificial intelligence is also impacting the job market, with its adoption increasing from 46.1% in 2025 to 56% in 2026 across all job categories. Companies are prioritizing employee upskilling and offering pay premiums of about 10% for roles involving AI, machine learning, and data science. However, compliance with the Wage Code may increase payroll costs by at least 1%, adding financial pressure for employers.