Mumbai: Salaries in India are projected to rise by 9.1 per cent in 2026-27, led by the NBFC, energy, real estate and infrastructure sectors, despite geopolitical uncertainties and global trade risks, according to global professional services firm Aon plc's Annual Salary Increase and Turnover Survey for India 2026-27, released on Wednesday.
The projected 9.1 per cent increase is broadly unchanged from the actual average salary increase of 9 per cent recorded in 2026, suggesting employers are holding compensation budgets steady even as competition for talent remains intense.
Which sectors will pay more
Non-banking financial companies are expected to lead salary growth in 2027 with projected increments of 10.1 per cent, followed by the energy sector at 9.9 per cent and real estate and infrastructure at 9.8 per cent. Automotive and vehicle manufacturing salaries are projected to rise 9.5 per cent, banking 8.5 per cent, chemicals 8 per cent, retail 9 per cent and global capability centres 9.4 per cent. Technology consulting and services trail at 6.6 per cent, unchanged from 2026.
"Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline," said Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions India at Aon.
Attrition and AI reshape the market
The survey, in its 33rd year and based on inputs from more than 1,200 organisations across 45 industries, found that overall attrition rose to 18 per cent in 2026, up from 16.2 per cent in 2025 and 17.1 per cent in 2024 — a sign that the fight for talent is far from over.
Employers are also reshaping workforce strategies as artificial intelligence becomes more deeply embedded in day-to-day work. Established adoption of AI productivity tools rose from 46.1 per cent in 2025 to 56 per cent, around 60 per cent of employers are prioritising employee upskilling, and companies are offering roughly 10 per cent higher pay premiums for AI, machine learning and data science roles compared with 2025.
Sources: Hindustan Times: India's salary growth to remain resilient at 9.1% in 2026-27: Survey, NDTV: Salaries In India Expected To Rise 9.1% In 2027 Amid Global Uncertainty: Report, The Economic Times: Planning a job switch? These sectors may see the biggest salary hikes in 2027
The projected 9.1 per cent increase is broadly unchanged from the actual average salary increase of 9 per cent recorded in 2026, suggesting employers are holding compensation budgets steady even as competition for talent remains intense.
Which sectors will pay more
Non-banking financial companies are expected to lead salary growth in 2027 with projected increments of 10.1 per cent, followed by the energy sector at 9.9 per cent and real estate and infrastructure at 9.8 per cent. Automotive and vehicle manufacturing salaries are projected to rise 9.5 per cent, banking 8.5 per cent, chemicals 8 per cent, retail 9 per cent and global capability centres 9.4 per cent. Technology consulting and services trail at 6.6 per cent, unchanged from 2026.
"Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline," said Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions India at Aon.
Attrition and AI reshape the market
The survey, in its 33rd year and based on inputs from more than 1,200 organisations across 45 industries, found that overall attrition rose to 18 per cent in 2026, up from 16.2 per cent in 2025 and 17.1 per cent in 2024 — a sign that the fight for talent is far from over.
Employers are also reshaping workforce strategies as artificial intelligence becomes more deeply embedded in day-to-day work. Established adoption of AI productivity tools rose from 46.1 per cent in 2025 to 56 per cent, around 60 per cent of employers are prioritising employee upskilling, and companies are offering roughly 10 per cent higher pay premiums for AI, machine learning and data science roles compared with 2025.
Sources: Hindustan Times: India's salary growth to remain resilient at 9.1% in 2026-27: Survey, NDTV: Salaries In India Expected To Rise 9.1% In 2027 Amid Global Uncertainty: Report, The Economic Times: Planning a job switch? These sectors may see the biggest salary hikes in 2027
