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Aon Forecasts 9% Salary Rise for India in 2026, With Real Estate and NBFCs Outpacing Tech

Falling voluntary attrition alongside higher retrenchment points to a steadier yet selective labor market.

Overview

  • Aon’s 2025–26 survey of about 1,060 companies across 45 industries projects a national average pay increase of 9% next year, up slightly from the 8.9% actually delivered in 2025.
  • Sectoral gaps are pronounced, with real estate and infrastructure at 10.9% and non-banking financial companies at 10%, while technology consulting and services lags at about 6.8%.
  • Other sectors expected to post relatively stronger hikes include automotive and vehicle manufacturing, engineering design services, retail, and life sciences, generally in the 9.6–9.7% range.
  • Voluntary attrition has eased to 17.1% in 2025 from 17.7% in 2024, giving employers more room to focus on retention, targeted upskilling, and performance-linked pay.
  • Involuntary attrition has risen to roughly 4.6%, the highest since 2020, reflecting cautious budgeting and workforce reshaping even as domestic demand and policy support underpin resilience.