Corporate India's salary hikes to slow down in 2026: Report
Salary hikes in corporate India are expected to slow down a bit in 2026, averaging 9.1%, says EY's latest Future of Pay report.
Nearly half of companies are switching from traditional role-based pay to rewarding people for in-demand skills instead.
Tech skills now hot property
Tech skills like AI, machine learning, and cybersecurity are now hot property—those with them can earn up to 30-40% more than others.
Variable pay rose to 16.1% of fixed salary in 2025, up from 14.8% in 2024.
Which sectors will see highest raises?
Global Capability Centres (GCCs) will see the highest raises at 10.4%, followed by finance and e-commerce sectors.
GCCs also have the lowest attrition rates, while financial services see more people leaving—the sector recorded the highest attrition (24%).
Need to rethink pay to attract, keep talent
Abhishek Sen from EY sums it up: companies need to rethink pay if they want to attract and keep top talent in today's fast-changing world.
The focus is shifting from job titles to real skills that drive results and future growth.