Synopsis

In 2027, employees across India Inc are projected to enjoy a salary boost of 9.1%, as reported by Aon Plc. However, the attrition rate has surged to 18% in 2026, a significant rise from previous years. Non-banking financial firms are anticipated to lead the charge with a 10.1% wage increase.

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India Inc employees are likely to get an average salary increase of 9.1% in 2027, almost unchanged from 9% this year, according to a survey by global professional services firm Aon Plc.

Overall attrition rate worsened to 18% in 2026 from 16.2% in 2025 and 17.1% in 2024.

“The increase suggests competition for talent remains strong despite broadly stable salary budgets,” Aon said in 2026-27 salary increase and turnover survey for India. The survey, in its 33rd year, analysed data from more than 1,200 organisations across 45 industries.

Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon, said the projected increment reflects continued resilience in compensation budgets despite geopolitical uncertainty and global trade risks.

Among the sectors covered by the survey, non-banking financial companies are projected to lead salary growth in 2027 at 10.1%, followed by energy at 9.9% and real estate and infrastructure at 9.8%.

“Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline,” said Chaudhary.

Stable salary budgets are enabling a more targeted approach to pay. “Employers are increasingly focused not only on how much they spend, but where that investment can deliver the greatest workforce and business value,” said Chaudhary.

Projected salary hike for other sectors like automotive/vehicle manufacturing is likely to be 9.5% in 2027 vs 9.7% in 2026; banking 8.5% (2027) vs 8.6 (2026); chemicals 8% vs 8.1% (2026); Global Capability Centres 9.4% in 2027 compared to 9.4% last year.

Alongside retention, employers are reshaping workforce strategies as AI becomes more deeply embedded in day-to-day work, according to the survey. Established adoption of AI productivity tools rose from 46.1% in 2025 to 56%, with usage increasing across every job cluster measured.

Around 60% of employers are prioritising staff upskilling, while investment in agentic AI and demand for AI skills continue to grow.

“The rapid adoption of AI signals a shift from experimentation to enterprise-wide application,” said Chaudhary. “The next priority is translating that momentum into measurable productivity and growth.”

Workforce priorities are evolving alongside the payroll implications of the Wage Code. While 65.4% of employers are already compliant and a further 20.9% expect to be ready within six months, 42.8% anticipate payroll cost increases of at least 1%.

“Progress on Wage Code readiness is encouraging, but compliance is only the first step,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon. “Employers need to assess the workforce and cost implications, align any changes to cost to the company with their rewards philosophy and communicate the transition clearly,” Otwani said.

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