Salary Hike: Companies delight their employees with bonuses on Diwali, but before that, another piece of good news has arrived. This news will directly impact your employees’ pockets. In fact, an average salary increase of 9 percent is expected in India in 2026, slightly higher than the 8.9 percent increase recorded in 2025.
Following the Diwali bonus, India’s job market is now expected to see an average salary increase of 9% in 2026, slightly higher than the 8.9% increase in 2025. According to an Aon PLC report, this salary growth is being driven by strong domestic demand, infrastructure investment, and government policy support. In particular, real estate and non-banking financial companies (NBFCs) are projected to see salary increases of around 10.9% and 10%, making these sectors the most profitable for employees.
The report also states that the attrition rate has come down to 17.1% in 2025, which is lower than in previous years. This decrease is being seen as employee satisfaction with work along with better salary and benefits. Rupank Chaudhary, Partner at Aon, said that companies today are focusing on stability and growth along with salary increases to retain their talent. Other sectors like automotive, engineering design, life sciences, retail, and technology platforms are also expected to see salary increases of up to 9%, while this figure is expected to be slightly lower in technology consulting and services.
This wage increase will provide greater financial stability to employees in India and strengthen signs of economic growth. Companies in India are pursuing strategies to attract and retain talent by offering better salaries to their employees, even amid global uncertainties.