AgenciesIndia Inc employees are likely to receive higher average pay hikes of 9.1% in 2026, according to Aon's 32nd edition of Annual Salary Increase and Turnover Survey 2025-26 India.
This compares with the 8.9% average pay hikes in 2025.
Real estate/infrastructure and non-banking finance companies (NBFCs) are likely to offer the highest increases of around 10%, while automotive and vehicle manufacturing, engineering design services, engineering and manufacturing and retail sectors are projected to offer slightly higher-than-average salary hikes, the survey said.
In addition, the attrition levels came down in 2025, it said.
“We are seeing the attrition levels across industries coming down to a five-year low of 16.2% in 2025,” Roopank Chaudhary, partner and rewards consulting leader-talent solutions, India at Aon, told ET.
This normalisation reflects more targeted hiring practices and a greater emphasis on employee engagement, he said.
“Stronger salary growth in sectors such as real estate, NBFCs and manufacturing underscores employers’ intent to invest in critical talent while building more sustainable compensation strategies,” said Chaudhary.
The overall attrition of 16.2% in 2025 is closer to pre-Covid levels. Attrition stood at 17.7% in 2024 and 18.7% in 2023.
“With India’s labour codes now notified, organisations are navigating one of the most significant regulatory transitions in decades,” said Amit Kumar Otwani, associate partner-talent solutions, India at Aon. “The standardised definition of wages and expanded social security provisions are prompting many employers to reassess and restructure compensation.”
According to Aon, 73% of organisations are still assessing how to fund the Wage Code impact, with only 27% having a defined approach.
The survey analysed data from more than 1,400 organisations across 45 industries.
This compares with the 8.9% average pay hikes in 2025.
Real estate/infrastructure and non-banking finance companies (NBFCs) are likely to offer the highest increases of around 10%, while automotive and vehicle manufacturing, engineering design services, engineering and manufacturing and retail sectors are projected to offer slightly higher-than-average salary hikes, the survey said.
In addition, the attrition levels came down in 2025, it said.
“We are seeing the attrition levels across industries coming down to a five-year low of 16.2% in 2025,” Roopank Chaudhary, partner and rewards consulting leader-talent solutions, India at Aon, told ET.
This normalisation reflects more targeted hiring practices and a greater emphasis on employee engagement, he said.
“Stronger salary growth in sectors such as real estate, NBFCs and manufacturing underscores employers’ intent to invest in critical talent while building more sustainable compensation strategies,” said Chaudhary.
The overall attrition of 16.2% in 2025 is closer to pre-Covid levels. Attrition stood at 17.7% in 2024 and 18.7% in 2023.
“With India’s labour codes now notified, organisations are navigating one of the most significant regulatory transitions in decades,” said Amit Kumar Otwani, associate partner-talent solutions, India at Aon. “The standardised definition of wages and expanded social security provisions are prompting many employers to reassess and restructure compensation.”
According to Aon, 73% of organisations are still assessing how to fund the Wage Code impact, with only 27% having a defined approach.
The survey analysed data from more than 1,400 organisations across 45 industries.
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