Top Sectors for Salary Hikes in India 2026: Key Projections and Trends

Published on October 10, 2025

Contents

Delhi, India

Overview of National Salary Trends

Overall projected increase: 9% for 2026, a slight uptick from 8.9% in 2025, signaling steady workforce rewards amid global slowdowns.
Data drawn from comprehensive surveys covering over 1,000 companies across 45 industries, highlighting India’s economic resilience.
Focus on merit-based hikes, with actual increases for top performers averaging 10.2%—a 0.3% rise from last year.
Broader context: Driven by domestic consumption, infrastructure push, and talent retention strategies, positioning India as a global bright spot.

Real Estate/Infrastructure: Highest at 10.9% (up from 10.5% in 2025), fueled by massive government investments and urban development projects.
Non-Banking Financial Companies (NBFCs): Close second with 10%, reflecting booming credit demand and fintech innovations.
Engineering Design Services: 9.7%, boosted by outsourcing trends and precision engineering needs in global supply chains.
Automotive/Vehicle Manufacturing: 9.6%, propelled by EV transitions and export growth.
Retail: 9.6%, driven by e-commerce expansion and consumer spending recovery.
Life Sciences: Steady 9.6%, with pharma R&D and biotech advancements creating high-demand roles.
Global Capability Centres (GCCs): 9.5%, as multinationals ramp up India operations for cost-effective innovation hubs.
E-commerce: 9.2%, amid logistics upgrades and digital marketplace saturation.
Laggards: Technology consulting/services at 6.8%, due to saturation and AI automation pressures.

Policy Reforms: Simplified tax compliance and rationalized rates enhance corporate efficiency, freeing budgets for competitive pay in consumer and auto sectors.
Talent Demand: Surge in skilled roles for AI, sustainability, and digital transformation across infra and finance, outpacing supply.
Investment Inflows: Record infrastructure spending (over Rs 11 lakh crore budgeted) and FDI in realty/NBFCs amplify hiring and upskilling budgets.
Sector-Specific Boosts: Real estate benefits from affordable housing schemes; NBFCs from RBI’s supportive liquidity measures.

National attrition rate: Dropped to 17.1% in 2025 from 17.7% in 2024, the lowest in years, enabling firms to prioritize retention over reactive hikes.
Impact: Lower churn fosters long-term investments in employee development, with 70% of companies planning upskilling programs.
High-attrition sectors like retail and e-commerce see hikes as a stabilizing tool, reducing voluntary exits by up to 2-3%.
Expert view: “Strategic compensation is key to workforce stability in uncertain times,” underscoring a shift to holistic rewards.

India’s GDP growth: Projected at 6.8-7% for FY26, outstripping global averages, with manufacturing and services leading job creation.
Emerging opportunities: Sustainability roles in green infra (expected 15% hike premium) and data analytics in NBFCs (12% for specialists).
Challenges: Inflation at 4.5% may erode real gains, but tax rebates for salaried class mitigate this.
Global comparison: India’s 9% outpaces Asia-Pacific average of 7.5%, attracting expat talent back home.

Upskill Now: Target certifications in EV tech for auto, ESG for realty, or fintech for NBFCs—aim for 20% skill premium.
Job Switch Timing: Mid-year moves yield 15-20% jumps; stay put for loyalty bonuses in stable firms.
Negotiation Tips: Highlight quantifiable impacts; leverage multi-offer scenarios in hot sectors.
Long-Term Play: Focus on GCCs for global exposure or life sciences for recession-proof stability.

As 2026 approaches, these trends paint a promising picture for Indian professionals—position yourself in high-growth sectors to ride the wave!