Salaries in India are projected to increase by 9.1% in 2027, marginally higher than the actual 9% rise in 2026, as employers balance talent retention with cost pressures, according to a survey by global professional services firm Aon.
The Annual Salary Increase and Turnover Survey for India 2026-27 analysed data from more than 1,200 organisations across 45 industries. It found that overall employee attrition rose to 18% in 2026, compared with 16.2% in 2025 and 17.1% in 2024, indicating intensifying competition for skilled workers.
Non-banking financial companies are expected to record the highest salary increases at 10.1% in 2027, followed by energy at 9.9% and real estate and infrastructure at 9.8%. Technology consulting and services are projected to see the lowest increase at 6.6%.
Aon said employers are increasingly targeting compensation towards critical skills while maintaining stable salary budgets. The adoption of artificial intelligence productivity tools rose to 56% from 46.1% in 2025, while around 60% of employers are prioritising employee upskilling. Talent premiums for AI, machine learning and data science roles increased by approximately 10% from 2025.
The survey also found that 65.4% of employers were compliant with the Wage Code, while 20.9% expected to achieve readiness within six months. Meanwhile, 42.8% anticipated payroll cost increases of at least 1%.