India salaries expected to rise 9.1% in 2027; NBFCs to lead: Aon survey
The projected increase is marginally higher than the actual salary growth of 9 per cent recorded in 2026, according to Aon’s Annual Salary Increase and Turnover Survey for India 2026-27, which analysed data from more than 1,200 organisations across 45 industries.
The energy sector is projected to see salary increases of 9.9 per cent in 2027, followed by real estate and infrastructure at 9.8 per cent, the survey revealed.
Life sciences and funds and asset management are expected to record increases of 9.6 per cent each.
Overall employee attrition rose to 18 per cent in 2026 from 16.2 per cent in 2025 and 17.1 per cent in 2024, indicating sustained competition for talent despite broadly stable salary budgets, the survey said.
Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India, at Aon, said strong domestic consumption, sustained investment and export growth continued to support business confidence, enabling employers to invest in talent while maintaining cost discipline.
He said companies were increasingly adopting targeted pay strategies, focusing on market alignment, scarce skills and critical talent rather than simply increasing overall compensation budgets.
The survey also highlighted the growing role of artificial intelligence (AI) in workforce planning. Adoption of AI productivity tools increased to 56 per cent in 2026 from 46.1 per cent in 2025, while around 60 per cent of employers prioritised employee upskilling. Talent premiums for AI, machine learning and data science roles increased by approximately 10 per cent from 2025.
On Wage Code preparedness, 65.4 per cent of employers said they were already compliant, while another 20.9 per cent expected to be ready within six months. However, 42.8 per cent anticipated payroll cost increases of at least one per cent.
Amit Kumar Otwani, Associate Partner, Talent Solutions, India, at Aon, said employers needed to assess the workforce and cost implications of Wage Code implementation, align changes in cost to company with their compensation policies and communicate the transition clearly.
He said early preparation would help organisations maintain pay competitiveness and employee trust as AI investments, changing skill requirements and regulatory compliance reshape workforce costs.
TNT KM
