What would be the average salary hike for 2026 in India? The answer, according to the Aon Annual Salary Increase and Turnover Survey 2025-26 India, is 9 per cent. Yes, an overall 9 cent salary hike, which will include adjustments, performance-based increments, and so on. Globally, the figures for Canada, the UK, Germany and Japan are, 4, 4.1, 3.9 and 3.8 per cent, respectively. The outlook for China is 4.9 per cent, while for the US it is 4.3 per cent. Brazil, Malaysia, Singapore, Indonesia and Australia, project an average salary increment of 4.9, 4.7, 4.2, 5.9 and 3.9, respectively.
Indeed, India does stand out with the highest projected increments among the biggest economies worldwide. Why? Because Indian companies are setting aside bigger budgets for the high performers in their workforce. They are also offering generous packages to talent with niche skills, not just to attract them but also to retain them. Employers have come to realise that they have to safeguard their critical talent amidst stiff competition and widespread poaching.
Financial institutions in India project an average increment of 9.1 per cent in 2026, compared to 8.9 in 2025. Companies in the automotive and vehicle-manufacturing space actually granted an average increment of 9.8 per cent in 2025 but project only 9.6 per cent hike for 2026. While the e-commerce space saw average salary increment of 8.9 per cent in 2025, the hike projected for 2026 is 9.2 per cent. Non-banking financial companies that gave an increment of 9.8 per cent in 2025 are projecting an average hike of 10 per cent for 2026.
Real estate led in terms of increments in 2025 (10.5 per cent) and for 2026 too the sector projects 10.9 per cent salary hike. Increment numbers are expected to remain the same in the life sciences space, at 9.6 per cent as they were in 2025. The global capability centres (GCCs) can expect salary increments around 9.5 per cent, which is a wee bit higher than the actuals in 2025 (9.4 per cent).
The lowest anticipated salary hikes are 6.8 per cent for the Technology Consulting and Services companies (compared to 7 per cent in 2025), followed by life insurance (8.5 per cent compared to 8.4 per cent in 2025)) and banking (8.6 per cent in 2026 compared to 8.5 per cent in 2025).
Top and senior managers who received around 8.5 per cent salary hike in 2025, can expect the same in 2026.
Similarly, there is no variation in the increments for middle managers (8.9 per cent in 2025 and 2026). Junior managers received a hike of 9.3 per cent in 2025, and can expect the increment to be 9.5 in 2026.
Clearly, employers plan to focus on drawing the best junior-level talent and also retaining them, especially amidst the increasing competition in the market.
The survey suggests that employers have high hopes for the future and believe in being prepared for the same by sensibly planning salaries and hikes without letting their revenue goals out of sight.