ArdorComm Media News Network
October 16, 2026
Average salaries in India are projected to increase by 9.1% in 2027 as companies seek to attract and retain skilled employees while managing rising workforce costs and uncertain global economic conditions, according to a report released by professional services firm Aon on Wednesday.
The estimate comes from Aon’s Annual Salary Increase and Turnover Survey for India 2026-27 and is broadly in line with the average salary hike of 9% recorded in 2026. The study covered more than 1,200 organisations across 45 industries, making it one of India’s largest compensation surveys.
The report noted that strong domestic consumption, continued investments and export growth are supporting business confidence, enabling employers to maintain compensation spending while remaining focused on cost efficiency.
Among sectors, non-banking financial companies (NBFCs) are expected to record the highest salary increases at 10.1% in 2027. The energy sector is projected to follow with increments of 9.9%, while real estate and infrastructure companies are expected to offer hikes of 9.8%.
Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions India at Aon, said employers are increasingly directing compensation towards critical roles and employees with skills in high demand. He noted that stable salary budgets, alongside a modest increase in non-merit adjustments in manufacturing and technology, indicate a growing emphasis on market competitiveness and workforce priorities.
The survey also highlighted rising employee attrition, with the overall rate reaching 18% in 2026, compared with 16.2% in 2025 and 17.1% in 2024. The trend underscores the continuing challenge of retaining talent amid competition for skilled professionals.
Meanwhile, the adoption of artificial intelligence (AI) productivity tools continued to expand across workplaces. Established usage increased to 56% in 2026 from 46.1% in the previous year, with adoption spreading across all major job categories examined in the survey.
Amit Kumar Otwani, Associate Partner at Aon’s Talent Solutions India, emphasised that employers must look beyond regulatory compliance when implementing the Wage Code. He highlighted the importance of evaluating its wider implications for workforce management and costs while communicating changes effectively to employees.
Source: IANS