Indian Workforce Projected to Receive 9.1 Percent Average Salary Hike in FY 2026-27 Led by NBFC SectorBusiness
14 Oct 2026, 8:01 pm (2 hours ago)· 0

Indian Workforce Projected to Receive 9.1 Percent Average Salary Hike in FY 2026-27 Led by NBFC Sector

Corporate employers across India are expected to roll out an average pay increase of 9.1 percent in FY 2026-27, with financial services and energy leading the charts. Demand for specialized AI and data skills continues to command a distinct premium amid rising employee attrition.

Corporate employers across India are projected to raise employee compensation by an average of 9.1 percent during the financial year 2026-27. Leading the compensation growth trajectory are non-banking financial companies (NBFCs), followed closely by the energy, real estate, and infrastructure sectors. These findings emerged from an annual corporate human resources survey released on Wednesday by global professional services organization Aon Plc, examining nationwide pay adjustments and employee turnover trends.

Sectors Projecting the Highest Salary Adjustments

Sector-wise data reveals that NBFC firms are poised to offer the steepest pay revisions, averaging around 10.1 percent for their workforce. The energy sector follows closely behind with an expected increment of 9.9 percent, while real estate and infrastructure developers are anticipated to offer salary growth of approximately 9.8 percent. The comprehensive projections are based on detailed workforce and compensation metrics submitted by more than 1,200 organizations across 45 diverse industrial sectors in the country.

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Economic Underpinnings Driving Employer Confidence

The steady salary planning across corporate India reflects robust domestic fundamentals and business confidence. Roopank Chaudhary, Partner and Head of Talent Solutions for Aon in India, noted that domestic consumption, steady investments, and export momentum have bolstered business optimism, enabling companies to invest in talent while maintaining operational cost discipline. Sustained revenue pipelines and domestic market buoyancy have empowered corporate leadership to maintain healthy increment budgets.

Rising Attrition Points to Intensified Talent Rivalry

Despite steady remuneration packages, corporate employers are navigating increasingly turbulent talent retention dynamics. Employee attrition climbed to 18 percent in 2026, marking a notable jump from 16.2 percent recorded in 2025 and 17.1 percent in 2024. This escalating churn indicates that retaining skilled and high-performing staff remains intensely competitive, prompting firms to recalibrate retention packages and workplace incentives.

Adoption of Artificial Intelligence and Workforce Upskilling

Workplace environments are undergoing a significant technological shift as generative and specialized automated systems become standard operational tools. The proportion of enterprises regularly integrating AI-powered productivity platforms rose to 56 percent in 2026, up from 46.1 percent a year earlier. Furthermore, around 60 percent of surveyed organizations have made workforce skill development a primary priority, responding to growing operational deployment of agentic AI and rising demand for digital capability.

Salary Premium for Machine Learning and Code Compliance Progress

Technical expertise continues to command an outsized financial reward in the talent market. Professionals possessing validated expertise in AI, machine learning, and data science disciplines are earning roughly 10 percent higher compensation from Indian enterprises compared to the levels observed in 2025. On the regulatory and compliance front, 65.4 percent of companies have already aligned their payroll and benefits structures with the provisions of the new wage code, while an additional 20.9 percent expect to achieve full compliance within the coming six months.

Questions & Answers

What is the projected average salary hike in India for FY 2026-27?
Employees in India are projected to receive an average salary increase of 9.1 percent during the financial year 2026-27.
Which industrial sector is anticipated to grant the highest salary increase?
The non-banking financial company (NBFC) sector leads with a projected average salary hike of 10.1 percent.
What are the salary projections for the energy and infrastructure sectors?
The energy sector is expected to see a 9.9 percent hike, while real estate and infrastructure firms project 9.8 percent growth.
What was the employee attrition rate recorded in 2026?
The employee attrition rate rose to 18 percent in 2026, compared to 16.2 percent in 2025 and 17.1 percent in 2024.
What salary premium are AI and data science professionals commanding?
Indian organizations are paying roughly 10 percent higher salaries to professionals skilled in AI, machine learning, and data science compared to 2025.
How widely are AI productivity tools adopted across Indian companies?
Regular adoption of AI productivity tools reached 56 percent of enterprises in 2026, rising from 46.1 percent in 2025.
What percentage of surveyed companies have adopted the new wage code?
Currently, 65.4 percent of companies comply with the new wage code, while another 20.9 percent expect to comply within six months.

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