New Delhi is buzzing with positive news for workers as projections show average salary increases in India climbing to 9.1 percent in 2026, up from 8.9 percent the previous year. This forecast comes from a comprehensive report released this week by a leading professional services firm, highlighting a resilient job market amid economic shifts.
Sector-wise breakdowns reveal stark differences. Real estate and infrastructure sectors are poised for the highest jumps at 10.2 percent, closely followed by NBFC at 10.1 percent. These areas are capitalizing on booming demand and infrastructure pushes. Meanwhile, technology, consulting, and services may see more modest gains of 6.6 percent, reflecting cautious budgeting in mature industries.
Other sectors show promise too. Automotive, engineering design, manufacturing, and retail are all expected to surpass the national average. Retail workers could pocket 9.5 percent raises, life sciences firms 9.4 percent, global capability centers 9.3 percent, and funds & asset management 8.5 percent. This variation underscores how market dynamics shape compensation strategies.
The study, covering over 1,400 organizations across 45 industries, points to employers doubling down on technology, engineering, and customer-centric skills. In a competitive talent landscape, companies are battling for specialized expertise to navigate evolving markets.
Employee attrition has notably dropped to 16.2 percent in 2025 from 17.7 percent in 2024 and 18.7 percent in 2023. This trend signals better retention efforts through targeted hiring, employee engagement, career growth, and workplace stability.
Experts predict that with a more stable workforce and improved talent ecosystems, businesses are well-positioned for skill-building investments, future-proofing capabilities, and fostering long-term growth via robust talent pipelines.
A senior associate partner from the firm’s talent solutions in India emphasized the impact of new labor codes. Organizations face one of the most significant regulatory changes in decades, prompting reviews of compensation structures due to standardized wage definitions and expanded social security. Clear communication on these shifts will be key to maintaining employee trust and stability.