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India’s expected salary hike for 2027 remains relatively strong despite rising global economic uncertainty, with employee compensation slated to rise by an average of 9.1% in 2027. In a bid to compete for skilled workers and prepare for an evolving business ecosystem, the hike will underscore sustained demand for talent across several industries.
However, the slated increase does not imply that every employee will secure a 9.1% raise. Real increases are likely to vary according to industry and work domain, firm performance, employee productivity, skills, and the availability of qualified professionals. Some sectors may provide higher salary hikes than others, especially those facing shortages of specialised workforce.
Which Sectors May See the Biggest Salary Hikes in India in 2027?
According to Aon’s Annual Salary Increase and Turnover Survey for India 2026–27, non-banking financial companies (NBFCs) are likely to offer the maximum average salary increments, followed by energy, real estate and infrastructure.
NBFCs: The non-banking financial services sector is expected to top with 10.1% salary growth. Demand for professionals in lending, credit assessment, risk management, compliance, and digital financial services could bolster compensation growth as companies expand their footprint.
Energy: Meanwhile, salary hikes in the energy sector are forecasted at 9.9%. Investment in energy infrastructure, power generation, renewables, and the shift towards cleaner energy may maintain demand for engineers, project specialists, and technical workers.
Real estate and infrastructure: This sector is slated to record average salary growth of 9.8%. Construction activity, infrastructure development, and the requirement for specialised project management and engineering skills may fetch pay hikes.
Technology and manufacturing are also key industries to watch out. Especially artificial intelligence (AI) skills and integration of AI across jobs could impact hiring and compensation.
Why Are Salaries Expected to Rise in the World in 2026?
Aon’s survey, encompassing more than 1,200 organisations across 45 industries, signals sustained support from domestic consumption, investment and export growth, which will in turn help businesses sustain hiring and salary budgets despite global economic pressures.
However, employers are becoming more selective about how they distribute salary rises. Rather than providing identical hikes across the workforce, companies are choosing critical roles, rare skills, and employees having a direct influence on company performance.
The survey also uncovered that total employee attrition rose to 18% in 2026, compared with 16.2% in 2025. Massive Competition for experienced professionals could therefore stay decisive in salary matters.
What Does This Mean for Indian Employees in 2026?
The projected 9.1% growth offers a wider indication of salary trends and does not guarantee every worker will secure the same raise. Individual salary hikes will depend on performance, company budgets, industry conditions, and the relevance of an employee’s talent.
For professionals eyeing a job switch in 2027, forging and leveraging expertise in AI, digital finance, energy systems, engineering, and project management may bolster and double their job prospects. The biggest gains may be won by employees who integrate in-demand technical expertise with the knack to solve business problems, adapt to new technologies, and offer measurable results.
Salary Hike Expectations in India Are Real?
But the actual reality is totally different. While the survey projects an average of 9.1% for 2027, Zoho founder Sridhar Vembu has a different message for his employees: no hike this year.
Mentioning soaring server costs, AI expenses and global uncertainty, Vembu wrote on social media that these are really hard times for software jobs, and they are trying to avoid large-scale workforce reductions. “We will work hard to avoid mass lay-offs,” he said.