ArdorComm Media News Network
February 25, 2026
Corporate India is projected to offer an average salary increment of 9.1% in 2026, with Global Capability Centres (GCCs) emerging as the frontrunners in pay growth, according to the latest Future of Pay report by EY India.
GCCs are expected to record the highest average increments at 10.4%, fuelled by sustained global demand for digital and advanced technology expertise. The financial services sector is likely to follow closely with projected hikes of around 10%, while e-commerce firms may offer 9.9% increases. Life sciences and pharmaceutical companies are anticipated to roll out average hikes of 9.7%.
The report also signals a moderation in workforce churn. Overall attrition declined to 16.4% in 2025 from 17.5% in 2024, reflecting a relatively stabilising employment environment. However, over 80% of employee exits continue to be voluntary, indicating that job switches are largely driven by better career prospects rather than downsizing.
Among sectors, financial services reported the highest attrition at 24%. Professional services and hi-tech and IT segments also experienced elevated turnover levels. In contrast, GCCs demonstrated comparatively stronger retention, with attrition standing at 14.1%.
Abhishek Sen, Partner and Leader – Total Rewards, HR Technology and Learning at EY India, noted that organisations are increasingly reassessing their talent investment strategies. He emphasised that compensation strategies are shifting beyond annual increments to focus on rewarding critical skills while maintaining long-term sustainability.
A notable trend highlighted in the report is the transition towards skills-based pay models. Nearly half of the surveyed organisations are moving away from conventional role-based compensation structures to frameworks that prioritise specific capabilities.
Professionals skilled in artificial intelligence, generative AI, machine learning, cybersecurity, and cloud computing are commanding salary premiums ranging between 30% and 40%, reflecting the strategic importance of these competencies in driving business growth.
Additionally, variable pay is becoming a more significant component of overall compensation. The average variable pay as a proportion of fixed salary rose to 16.1% in 2025, up from 14.8% the previous year.
Source: IANS