Salaries in India are projected to rise by 9.1 per cent in 2026-27, led by the NBFC, energy, real estate and infrastructure sectors, despite geopolitical uncertainties and global trade risks, a survey said on Wednesday.
Non-banking financial companies are projected to lead salary growth in 2027 at 10.1 per cent, followed by energy at 9.9 per cent and real estate and infrastructure at 9.8 per cent, according to global professional services firm Aon plc's Annual Salary Increase and Turnover Survey for India 2026-27.
"Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline," said Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon.
Stable salary budgets are driving targeted pay increases, with employers prioritising market alignment, scarce skills and critical talent to maximise workforce and business value, he added.
The survey is based on an analysis of inputs from more than 1,200 organisations across 45 industries.
Overall attrition rose to 18 per cent in 2026, up from 16.2 per cent in 2025 and 17.1 per cent in 2024.
The increase suggests competition for talent remains strong despite broadly stable salary budgets, added the survey.
Alongside retention, employers are reshaping workforce strategies as AI becomes more deeply embedded in day-to-day work. Established adoption of AI productivity tools rose from 46.1 per cent in 2025 to 56 per cent, with usage increasing across every job cluster measured.
Around 60 per cent of employers are prioritising employee upskilling, while investment in agentic AI and demand for AI skills continue to grow.
Employers are offering about 10 per cent higher pay premiums for AI, machine learning and data science roles compared with 2025.
"The rapid adoption of AI signals a shift from experimentation to enterprise-wide application. The next priority is translating that momentum into measurable productivity and growth. Employers that establish credible baselines, identify the capabilities that create differentiated value and align workforce investment accordingly will be best placed to realise AI's full potential," added Chaudhary.
While 65.4 per cent of employers are compliant with the Wage Code and 20.9 per cent expect to comply within six months, 42.8 per cent anticipate payroll cost increases of at least 1 per cent.
"Progress on Wage Code readiness is encouraging, but compliance is only the first step. Employers must assess workforce and cost implications, align changes with their rewards philosophy and communicate them clearly to maintain pay competitiveness and workforce trust, while strategically investing in talent amid rising AI adoption and evolving skill requirements," added Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon.