Salaries across India are expected to grow by 9% in 2026, with the real estate and non-banking financial companies (NBFC) sectors driving much of this growth, according to a new report by Aon, a global professional services firm. The real estate and infrastructure sector is projected to record one of the strongest pay hikes—10.9% in 2026, up from 10.5% in 2025. This continued momentum is supported by government-led capital investments, rising real estate activity in both commercial and residential markets, and greater institutional participation. According to Roopank Chaudhary, Partner and Rewards Consulting Leader at Aon, policy reforms and infrastructure spending have significantly improved hiring sentiment. He added that real estate and NBFCs are leading in talent investments, as organizations adjust pay strategies to maintain growth and workforce stability. Among financial institutions, NBFCs are expected to see the largest average salary increase at 10%, followed by asset management firms (9.5%) and banks (8.6%). Other industries such as retail (9.6%), life sciences (9.6%), and engineering design services (9.7%) are also forecast to experience robust pay growth. In contrast, technology consulting and services remain conservative, with projected salary hikes of only 6.8%, as companies emphasize efficiency and cost control amid global challenges. India’s employee attrition rate has dropped to 17.1% in 2025, the lowest in five years, compared to 17.7% in 2024 and 18.7% in 2023. However, involuntary exits have risen slightly to 4.6%, reflecting a focus on performance-based restructuring and workforce optimization. Organizations are increasingly shifting from “just-in-time” to “just-in-case” workforce planning to improve resilience against supply chain and trade disruptions. The integration of AI and automation is further reshaping roles and helping reduce long-term labor costs. Aon expects organized sectors—especially real estate and financial services—to continue outperforming the broader market in terms of salary growth. With better retention, stable inflation, and targeted rewards, employers appear to be moving from aggressive hiring to strategic workforce consolidation, ensuring sustained productivity and profitability in FY26 and beyond.

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