Employees in India could see another year of salary growth in 2027. According to Aon’s annual salary survey, companies are expected to offer an average increment of 9.1%, compared with an estimated 9% in 2026. However, salary hikes will vary across industries, with some sectors expected to offer better increases than others. The survey covered more than 1,200 companies across 45 industries, providing an overview of salary trends and hiring priorities in India.
NBFC Sector May Offer the Highest Hike
The non-banking financial companies (NBFC) sector is expected to lead salary increases in 2027, with an estimated average hike of 10.1%. The energy sector follows at 9.9%, while real estate and infrastructure companies could offer increases of around 9.8%. Fund and asset management, along with life sciences, are projected to see salary hikes of 9.6%. Global Capability Centres (GCCs) may offer average increments of approximately 9.4%, according to the survey.
Salary Hikes in Automobile and Banking
Automobile companies are expected to offer salary increases of 9.5% in 2027. Engineering and manufacturing firms may provide hikes of around 9.3%, while the fast-moving consumer goods (FMCG) sector could match the overall average of 9.1%. Banking employees may receive an estimated 8.5% increase, while the chemical industry could see hikes of around 8%. Technology consulting and services are expected to record the lowest increase, at approximately 6.6%.
Employee Turnover and Job Cuts Increase
Companies are also dealing with the challenge of retaining employees. According to the survey, India's employee attrition rate rose from 16.2% in 2025 to 18% in 2026. The rate of workforce reductions also increased from 3.4% to 4%. These figures suggest that businesses are paying close attention to hiring costs, workforce requirements and employee retention. For workers, salary growth remains important, but job security is also becoming a major consideration.
Real Salary Growth May Be Lower
An average salary hike of 9.1% does not necessarily mean employees will enjoy the same increase in purchasing power. Inflation can reduce the benefit of a higher salary. The survey estimates real salary growth at 4.3% in 2026 and projects it could rise to 5.1% in 2027. Around 60% of surveyed companies expect their revenue to grow by more than 5% in the 2026-27 financial year. Meanwhile, 62% are budgeting for salary increases above 9%.
AI Skills Could Improve Salary Prospects
Artificial intelligence is also influencing salary and hiring decisions. The survey found that the share of companies using AI productivity tools increased from 46.1% in 2025 to 56% in 2026. Around 60% of companies are focusing on teaching employees new skills. Additional pay benefits for workers in AI, machine learning and data science roles have also increased by around 10% compared with 2025. Employees with in-demand technical skills could therefore have better salary prospects in 2027.
