Salaries across India are projected to increase by 9.1 percent in the 2026-27 period, sustained by robust domestic consumption, ongoing investments, and export growth, according to a survey released on Wednesday. Global professional services firm Aon plc published these findings in its Annual Salary Increase and Turnover Survey for India 2026-27, indicating that business confidence remains steady despite global trade risks and broader geopolitical uncertainties.

Leading the sectoral projections, non-banking financial companies are anticipated to see the highest salary growth at 10.1 percent. The energy sector follows closely with a projected increase of 9.9 percent, while real estate and infrastructure are expected to post a 9.8 percent rise.

Roopank Chaudhary, partner and rewards consulting leader for talent solutions in India at Aon, noted that strong economic fundamentals enable employers to invest in human capital while keeping cost discipline intact. He explained that stable salary budgets are guiding focused pay adjustments, with companies placing priority on market alignment, critical talent, and scarce skills to drive business value.

The findings are derived from data provided by more than 1,200 organizations spanning 45 different industries. Meanwhile, overall employee attrition climbed to 18 percent in 2026, marking an increase from 16.2 percent in 2025 and 17.1 percent in 2024, signaling that competition for skilled workers remains intense.

As artificial intelligence becomes more integrated into daily operations, organizations are actively reshaping their workforce frameworks. The adoption of AI productivity tools grew from 46.1 percent in 2025 to 56 percent, with usage expanding across all evaluated job clusters. In response, roughly 60 percent of employers are focusing on employee upskilling initiatives, and specialized roles in AI, machine learning, and data science are commanding pay premiums roughly 10 percent higher than the previous year.

Chaudhary emphasized that the swift integration of AI marks a transition from simple testing to enterprise-wide deployment, where the focus shifts toward achieving tangible productivity gains. He added that firms must establish clear capability baselines and direct their investments strategically to capture the full value of these technologies.

On the regulatory front, the survey found that 65.4 percent of employers have achieved compliance with the Wage Code, while another 20.9 percent anticipate meeting compliance requirements within half a year. However, 42.8 percent of organizations expect their payroll expenses to rise by at least 1 percent due to these regulatory shifts.

Amit Kumar Otwani, associate partner for talent solutions in India at Aon, stated that while progress toward Wage Code readiness is positive, companies must carefully evaluate the financial impacts, align adjustments with their overall rewards philosophy, and maintain clear communication to preserve employee trust and competitive positioning.