Mumbai: Salaries in India are projected to rise by 9 per cent in 2026, supported by resilient domestic consumption, investment, and policy measures, despite ongoing global economic growth uncertainties, according to a survey released on Tuesday.

The 9 per cent projection marks a slight increase from the 8.9 per cent salary growth recorded in 2025, the AON Annual Salary Increase and Turnover Survey 2024-25 (India) stated. The 30th edition of the survey gathered insights from 1,060 organisations across 45 industries.

Despite external headwinds, the report said India's economy remains strong due to infrastructure investment and consistent policy support.

Salary growth is expected to differ across sectors, with real estate and infrastructure (10.9 per cent) and non-banking financial companies (10 per cent) leading the way. The automotive (9.6 per cent), engineering design services (9.7 per cent), retail (9.6 per cent), and life sciences (9.6 per cent) sectors are also expected to see robust pay hikes due to continued investments in critical talent pools.

“India's growth story remains strong, supported by infrastructure investments and policy measures. Our survey shows that key sectors like real estate and NBFCs are leading in talent investment, while businesses are taking a strategic approach to compensation to ensure sustainable growth and workforce stability amid global uncertainty,” said Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions for India at Aon.

The survey also found that attrition rates declined to 17.1 per cent in 2025, compared with 17.7 per cent in 2024 and 18.7 per cent in 2023, indicating greater workforce stability and improved employee retention.

As organisations experience lower turnover, they are increasingly focusing on upskilling and talent development programmes to strengthen long-term resilience and prepare for future business needs, the survey added.