India’s workforce stands to gain as average salary hikes are projected to reach 9.1 percent in 2026, marking an uptick from 2025’s 8.9 percent. A detailed report from a global professional services giant, unveiled Tuesday, paints an optimistic picture backed by data from thousands of firms.
Diving into industry specifics, real estate/infrastructure leads with a robust 10.2 percent increase, while NBFCs trail closely at 10.1 percent. These sectors benefit from government initiatives and urban expansion. On the flip side, tech, consulting, and services sectors brace for 6.6 percent rises, the lowest in the pack, amid profitability pressures.
Bright spots emerge elsewhere: retail at 9.5 percent, life sciences at 9.4 percent, global capability centers at 9.3 percent, and funds & asset management at 8.5 percent. Automotive, engineering, and manufacturing also outpace the average, signaling recovery and innovation drives.
Spanning 1,400+ organizations and 45 sectors, the analysis reveals a strategic pivot. Employers are prioritizing tech upgrades, engineering prowess, and customer-focused talents to thrive in dynamic markets, intensifying the war for top skills.
Attrition rates tell a success story, falling to 16.2 percent in 2025 from 17.7 percent prior and 18.7 percent in 2023. This decline reflects smarter recruitment, heightened engagement, career advancement opportunities, and stable work environments.
Looking ahead, firms with steadier teams and richer talent pools are primed to invest in targeted skills, build enduring pipelines, and drive sustainable expansion.
The firm’s India talent solutions lead highlighted labor code notifications as a game-changer. With standardized pay norms and broader social protections, companies are restructuring packages. Transparent messaging will prove vital for workforce confidence amid these reforms.