India Inc Salary Trends 2026: Which Sector is Winning the Hike War?

India’s appraisal season is showing signs of renewed optimism as fresh data from major global professional services firms, Aon and EY, projects an average salary increase of 9.1% for 2026.

This marks a slight but significant uptick from the 8.9% actual hike recorded in 2025, signaling a phase of stabilization and strategic talent investment in a resilient economy.

Salary Hike Sector-Wise Winners: Real Estate and GCCs Lead

The salary landscape for 2026 is far from uniform, with specialized sectors significantly outperforming the national average.

According to the Aon survey, the Real Estate and Infrastructure sector is set to offer the highest hikes at 10.2%, followed closely by Non-Banking Financial Companies (NBFCs) at 10.1%.

Meanwhile, the EY “Future of Pay” report highlights that Global Capability Centres (GCCs) are expected to lead the pack with increments of 10.4%, driven by an insatiable global demand for digital and engineering specialized skills.

Conversely, traditional IT services are taking a more guarded approach, with projections lingering around 6.6% to 6.8%.

The “AI Premium” and Skills-Based Pay

A major shift in 2026 is the move toward skills-led compensation. Artificial Intelligence is no longer just a tool but a primary driver of pay decisions.

Employees with expertise in AI, Generative AI, and Machine Learning are commanding “skill premiums” of up to 40%.

EY’s findings indicate that nearly half of Indian organizations are shifting toward skill-based pay frameworks.

Companies are increasingly using data analytics to move away from broad-based, uniform increments toward “precision rewards” that prioritize high-impact roles and measurable productivity.

Cooling Attrition and Regulatory Shifts

The reports also bring good news on the retention front. Overall attrition in India has cooled to 16.2%–16.4%, returning to near pre-pandemic levels.

This stability allows firms to shift their focus from emergency hiring to long-term upskilling and career mobility.

However, HR departments are also navigating the implementation of new Labour Codes.

These regulations require that basic pay and certain allowances constitute at least 50% of total remuneration.

While 73% of firms are still assessing the financial impact, the shift is prompting a massive restructuring of CTC components like PF and gratuity to ensure compliance while maintaining workforce trust.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.