According to a recent report, India's average salary is expected to increase significantly by 2026. The real estate, non-banking financial institutions, and e-commerce sectors are expected to see the biggest increases. Find out how other sectors will fare.
New Delhi:
Average Salary Increase India 2026: If you are employed and waiting for a salary hike, then this news can bring a smile on your face. According to a new report by the British-American firm Aon, the average salary in India is expected to increase by about 9% in 2026. This means that companies will fill their employees' pockets a little more next year compared to 2025. The report says that there are some sectors where salary growth will reach close to double digits. Real estate, infrastructure and NBFCs (non-banking financial companies) will benefit the most. Know how much salary will increase in which sectors.
Salary growth is fast
According to the report, average salary growth was 8.9% in 2025, which could increase to 9% in 2026. Despite the global recession, India's economy continues to show strong growth. Aon says this is largely due to increased domestic demand and consumption, improved investment, and the impact of government policy reforms.
Which sectors will see the highest salary increases?
1. If you work in the real estate or finance sector, rejoice. Your salary is set to increase the most in 2026. According to an Aon report, salary increases are highest in the real estate and infrastructure sectors. While they were 10.5% in 2025, they could reach approximately 10.9% in 2026.
2. NBFCs (non-banking financial companies) will also see strong growth, rising from 9.8% to 10%.
3. Salary growth in the engineering design sector can increase from 9.6% to 9.7%.
4. The life sciences sector is also expected to grow steadily at 9.6%.
5. Retail sector growth in 2025 may increase to 9.6% from 9%.
6. The e-commerce sector is rapidly growing, with salary increases expected to range from 8.9% to 9.2%.
7. Growth in the manufacturing sector will also be good with minor fluctuations ranging from 9.4% to 9.2%.
8. Salary growth in the banking sector is expected to be between 8.5% and 8.6%.
9. Salaries in tech platform and product companies can reach 9.3% to 9.4%.
The focus of companies is changing
Rupank Chaudhary, Partner at Aon India, said that companies are now focusing not just on salary increases but also on retaining talent for the long term. According to him, the real estate and NBFC sectors are leading in talent investment. Companies are now strategically designing salary structures to ensure both growth and stability. The report states that the attrition rate has declined to 17.1% in 2025, a decline that has been consistent for the past two years. This means that companies are now relying more on stable talent and long-term relationships.
Tax reforms and business climate have a major impact
Amit Kumar Otwani, Associate Partner at Aon, says that recent tax and policy reforms in India have improved the business environment. If companies align their pay strategies with these reforms, they will be significantly better at hiring and retaining quality talent. Overall, average salary growth in India is expected to increase from 8.9% to 9%, meaning most employees could see slightly higher paychecks by 2026.