In 2026, salaries in India are expected to rise by an average of 9.1 per cent, according to a new report. Global Capability Centres (GCCs) are projected to lead with increases of 10.4 per cent, followed by financial services at around 10 per cent, e-commerce at 9.9 per cent, and life sciences and pharmaceuticals at 9.7 per cent. The findings are based on data from 178 companies across 16 sectors.
Attrition is showing signs of stabilising, dropping to 16.4 per cent in 2025 from 17.5 per cent the year before, as per an EY report. Most exits remain voluntary, with financial services seeing the highest attrition at 24 per cent, especially in sales, relationship management, and digital roles. Professional services recorded 21.3 per cent, Hi-Tech and IT 20.5 per cent, while GCCs reported lower attrition at 14.1 per cent.
Pay strategies are shifting towards skills-based models, with nearly half of organisations adopting them. Emerging tech roles such as AI, generative AI, and machine learning can command premiums of up to 40 per cent. Around 50–60 per cent of large companies now use analytics to guide compensation decisions.
Long-term incentive plans are also evolving. About 30 per cent of firms run multiple LTI schemes, and ESOP adoption has risen to 78 per cent in 2025. Nearly three-quarters of NSE 200 companies now offer LTIs, making them a standard part of CEO pay. Median CEO compensation in Nifty 200 companies reached ?7–9 crore in 2025, with 12–15 per cent annual growth. CEO pay is typically split into fixed pay (25–30 per cent), short-term incentives (25–30 per cent), and long-term incentives (45–50 per cent). COOs and CFOs follow as the next highest-paid executives.
The report also notes that India’s new Labour Codes are prompting companies to reassess wage structures, upgrade payroll systems, and prepare communication strategies to manage employee impact.
