India is expected to see an average salary hike of 9.1 per cent in the financial year 2026-27, with non-banking financial companies (NBFCs), energy, real estate and infrastructure emerging as the sectors likely to offer the highest pay increases. The projection was highlighted in an annual survey released by global professional services firm Aon Plc on Wednesday. The Salary Increase and Turnover Survey 2026-27 analysed data from more than 1,200 companies across 45 industries to assess salary hike trends and employee turnover expectations in India.
NBFCs expected to lead salary hikes at 10.1%
According to the survey, NBFCs are projected to record the highest salary increases at 10.1 per cent in 2026-27. The energy sector is expected to follow closely with a 9.9 per cent hike, while real estate and infrastructure companies are likely to offer salary increases of 9.8 per cent.
The projections indicate that companies across these sectors are expected to continue investing in talent while managing costs.
Strong domestic consumption and investment support business confidence
Rupank Chaudhary, Partner and Head of Talent Solutions at Aon in India, said strong domestic consumption, sustained investment and improving exports were helping maintain business confidence. “Strong domestic consumption, sustained investment and improving exports are keeping companies confident. This is helping them invest in talent while keeping costs under control,” Chaudhary said.
Employee turnover rises to 18% in 2026
Despite the expected stability in salary budgets, retaining skilled employees remains a challenge for companies. The survey found that the employee turnover rate rose to 18 per cent in 2026, compared with 16.2 per cent in 2025 and 17.1 per cent in 2024. The increase suggests that competition for talented professionals continues even as companies maintain relatively stable salary budgets.
AI adoption gathers pace across companies
The survey also highlighted the growing use of artificial intelligence (AI) in corporate operations. The proportion of companies regularly using AI-powered productivity tools increased from 46.1 per cent in 2025 to 56 per cent in 2026. Around 60 per cent of companies are prioritising employee upskilling, while investment in agentic AI and demand for AI-related skills continue to rise.
AI, machine learning and data science skills command higher salaries
Indian companies are paying employees with expertise in AI, machine learning and data science around 10 per cent more than they did in 2025, according to the survey. The findings underline the growing importance of specialised technology skills as businesses expand their use of AI and invest in improving workforce capabilities. The survey further found that 65.4 per cent of companies were complying with the provisions of the new wage code, while another 20.9 per cent expected to comply within the next six months.
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