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India Inc Likely to Grant 9.1% Average Salary Hike in 2026; GCCs Lead with 10.4% Growth: EY Report

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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  

India Inc Likely to Grant 9.1% Average Salary Hike in 2026; GCCs Lead with 10.4% Growth: EY Report Read More »

India Inc Poised to Offer 6.2% to 11.3% Average Salary Hikes Across Sectors: TeamLease Report

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Corporate India is set to witness salary hikes ranging between 6.2% and 11.3% in the current financial year, as companies realign their workforce strategies with a sharper focus on skill certifications and performance-linked incentives, according to the TeamLease Services’ Jobs and Salaries Primer 2025–26 report released on Tuesday. Drawing insights from over 1,300 organisations across 23 industries and 20 cities, the report highlights that some job roles may see hikes of up to 13.8%. The evolving demand for professionals who can blend technical expertise with business impact is driving this shift in compensation trends, said Kartik Narayan, CEO – Staffing at TeamLease Services. Among the sectors expected to offer the highest salary increases are Electric Vehicles (EV) and EV infrastructure (11.3%), consumer durables (10.7%), retail (10.7%), and non-banking financial companies (NBFCs) (10.4%). Top-paying roles in these sectors include: Electrical Design Engineer in the EV domain (12.4% hike), In-Store Demonstrator in consumer durables (12.2%), Relationship Executive in NBFCs (11.6%), and Fashion Assistant in retail (11.2%). The report also points to a robust revival in the blue-collar segment, thanks to rising infrastructure investments, a growing EV ecosystem, and renewed activity in real estate and manufacturing. Key roles like mechanic (10.4%), material handler (10%), machine operator (9.9%), and electrician (9.3%) are witnessing healthy pay increases. “This strong wage momentum in traditional blue-collar roles signals a need for companies to recalibrate hiring strategies in line with emerging growth sectors. For workers, upskilling will be key to remaining relevant and resilient,” Narayan added. In terms of cities and individual roles, standout salary hikes include: Quality Control Inspector in Pune (13.8%), MIS Executive in Hyderabad (13.4%), Data Engineer in Bengaluru (12.9%), Electrical Design Engineer in Mumbai (12.6%), and Sales Executive in Gurgaon (12.4%). Functionally, the most significant hikes are projected in sales and marketing roles (9.9%), followed by engineering (9.5%). Other domains such as finance, customer service, back-office operations, HR, and administration are expected to receive moderate increases between 8.2% and 8.6%, indicating balanced growth across business functions. Overall, the report underscores a broader recalibration of compensation structures in India Inc, with skill-based hiring, retention incentives, and future-ready talent emerging as strategic priorities. Source: PTI

India Inc Poised to Offer 6.2% to 11.3% Average Salary Hikes Across Sectors: TeamLease Report Read More »

India Inc Registers 501 Deals Valued at $21.4 Billion in Q2 2024: Report

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India Inc has recorded a total of 501 deals valued at USD 21.4 billion in Q2 2024, according to Grant Thornton Bharat Dealtracker. As per the consultancy firm, Q2 2024 witnessed the highest quarterly volumes in two years, while values declined due to the absence of big-ticket M&A transactions. The merger and acquisition (M&A) and private equity (PE) deals taken together stood at 467, valued at USD 14.9 billion, reflecting a 9 percent increase in volumes but a 28 percent decrease in value, primarily due to the previous quarter’s USD 8.5 billion Reliance-Disney mega-merger, Grant Thornton said. The just-ended quarter featured a one-billion-dollar deal and 30 high-value deals (over USD 100 million), which translates to a 58 percent increase in high-value deals compared to the previous quarter. “Indian corporates are increasingly investing domestically, reflecting strong confidence in the local investment climate,” Grant Thornton said in a release. Despite declining cross-border deals due to geopolitical instability, traditional sectors grew in volumes over the previous quarter. “With recent election results and anticipated policy clarity from the upcoming budget, political stability is expected to boost investor confidence and drive deal activity in the next six months,” it said. Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, noted that the quarter witnessed robust private equity activity and large domestic deals. “Despite a decline in cross-border deals due to geopolitical uncertainties, domestic investment remained strong. Traditional sectors like pharma and manufacturing also saw strong deal flows, collectively contributing nearly half of the deal values,” Vijetha said. According to Vijetha, the industry anticipates policy continuity, which should positively drive the deal activity.

India Inc Registers 501 Deals Valued at $21.4 Billion in Q2 2024: Report Read More »

India Inc’s Board Sizes Decrease Amid Heightened Governance Scrutiny

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Amid increasing scrutiny on governance issues, corporate boards in India are witnessing a reduction in size, according to a report by Excellence Enablers, backed by former SEBI Chairman M Damodaran. In fiscal years FY’18 and FY’19, the range of board members varied from 4 to 22. However, the maximum board size has contracted to 16 by FY23. The report underscores the importance of ensuring adequate board membership to effectively constitute mandatory board committees. With five required board committees, sufficient members are needed to prevent overlap among committee memberships. Highlighting the essence of good corporate governance, the report emphasizes the significance of voluntary adherence to governance best practices. Entities that proactively adopt governance measures often influence regulatory standards for the broader business community. Under the Companies Act, 2013, public companies must have a minimum of three directors, while private companies require at least two directors. The maximum limit for board size is fifteen directors. SEBI mandates that listed public companies appoint one-third of their board as independent directors, except for Public Sector Undertakings (PSUs). Additionally, if the chairperson is a non-executive director, one-third of the board must comprise independent directors. In cases where there’s no regular non-executive chairperson, at least half of the board should consist of independent directors. As of March-end 2023, six companies were found to be non-compliant with independent director norms. The report stresses the importance of maintaining a balanced mix of executive and non-executive directors on boards to leverage diverse perspectives and experience. It cautions against combining the roles of Chairman and MD/CEO, highlighting the potential conflict of interest and the adverse impact on corporate governance. Moreover, the report recommends making the appointment of a lead independent director mandatory for boards chaired by executives to ensure effective governance oversight.

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