Salary hikes in India to average 9% in FY27: Survey
What's the story
India's salary growth is expected to remain strong at 9.1% in the fiscal year 2026-27, according to a survey by global professional services firm Aon. The non-banking financial companies (NBFCs), energy, real estate, and infrastructure sectors are expected to lead this growth despite geopolitical uncertainties and global trade risks. The survey analyzed inputs from over 1,200 organizations across 45 industries.
Sectoral growth
NBFCs to lead salary growth in 2027
The survey projects NBFCs to lead the salary growth in 2027 at 10.1%, followed by energy (9.9%) and real estate and infrastructure sectors (both at 9.8%).
Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon, said strong domestic consumption, sustained investment, and export growth continue to support business confidence.
He added these factors allow employers to invest in talent while maintaining cost discipline.
Salary strategies
Attrition rate in 2026 rises to 18%
Chaudhary also noted that stable salary budgets are driving targeted pay increases.
He said employers are prioritizing market alignment, scarce skills, and critical talent to maximize workforce and business value.
The survey found an overall attrition rate of 18% in 2026, up from 16.2% in 2025 and 17.1% in 2024.
This increase indicates that competition for talent remains strong despite broadly stable salary budgets.
Tech impact
AI adoption and workforce strategy reshaping
As artificial intelligence (AI) becomes more embedded in day-to-day work, employers are reshaping their workforce strategies.
The established adoption of AI productivity tools rose from 46.1% in 2025 to 56% in 2026, with usage increasing across every job cluster measured.
Around 60% of employers are prioritizing employee upskilling while investment in agentic AI and demand for AI skills continue to grow.
Salary trends
Employers offering higher pay premiums for AI, ML, data science
Employers are offering about 10% higher pay premiums for AI, machine learning, and data science roles compared to 2025.
Chaudhary said the rapid adoption of AI signals a shift from experimentation to enterprise-wide application.
He added that the next priority is translating that momentum into measurable productivity and growth.
Regulatory impact
Progress on Wage Code readiness is encouraging
While 65.4% of employers are compliant with the Wage Code and 20.9% expect to comply within six months.
Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon, said, "Progress on Wage Code readiness is encouraging, but compliance is only the first step."
"Employers must assess workforce and cost implications, align changes with their rewards philosophy and communicate them clearly to maintain pay competitiveness and workforce trust, while strategically investing in talent amid rising AI adoption and evolving skill requirements."