India to beat global peers in salary hikes for 2026
What's the story
India is set to witness a significant rise in salaries, with an average increase of 9.1% projected for 2026. The forecast comes from Aon's Annual Salary Increase and Turnover Survey, which analyzed compensation data from over 1,400 organizations across 45 industries in India. Industry experts say India's strong economic fundamentals and sustained demand for skilled talent are key factors driving this growth.
Global comparison
Real estate, NBFCs among top pay sectors
The survey shows that India is outpacing many major economies in terms of salary growth. This is mainly because companies are investing more in talent, especially in technology, engineering, and customer-facing roles. Sectors like real estate and infrastructure as well as non-banking financial companies (NBFCs) are expected to see the highest salary hikes in 2026, according to the study.
Sectoral analysis
Fastest-growing pay segments in India
The survey also provides a detailed look at projected salary hikes across different industries in 2026. The automotive/vehicle manufacturing sector is expected to see a rise of 9.9%, while banking and chemicals sectors are likely to witness increases of 8.8% and 8.3%, respectively. Notably, NBFCs and real estate/infrastructure sectors may offer salary hikes close to the double-digit mark, making them some of India's fastest-growing pay segments.
Global outlook
India's salary growth compared to other major economies
India's projected salary increase of 9.1% in 2026 is way ahead of many other major economies. Brazil and China are expected to see increases of just 4.9% and 4.8%, respectively, while the US, Singapore, UK, Germany, and Australia are all projected to see increases below 5%. This highlights India's strong business expansion and sustained demand for skilled talent amid global economic uncertainty.