Mumbai, (Economy India): Salaries in India are projected to increase by 9.1% in 2026-27, supported by growth in non-banking financial companies (NBFCs), energy, real estate and infrastructure, according to a survey by global professional services firm Aon plc.
The Annual Salary Increase and Turnover Survey for India 2026-27 indicates that salary growth is expected to remain resilient despite geopolitical uncertainties and global trade risks.
NBFCs are projected to lead salary increases in 2027, with a 10.1% rise, followed by the energy sector at 9.9% and real estate and infrastructure at 9.8%.
The projections highlight employers’ continued focus on attracting and retaining talent while balancing compensation budgets amid an uncertain global economic environment.
NBFCs Expected to Lead Salary Increases
According to Aon’s survey, the financial services segment is expected to record the strongest salary growth among the sectors highlighted in the report.
NBFCs are projected to offer average salary increases of 10.1% in 2027. The energy sector is expected to follow at 9.9%, while real estate and infrastructure are projected to record increases of 9.8%.
These projections reflect continued demand for skilled professionals in sectors linked to credit, investment, industrial activity and infrastructure development.
Projected Salary Growth by Sector
| Sector | Projected Salary Increase |
|---|---|
| Non-banking financial companies (NBFCs) | 10.1% |
| Energy | 9.9% |
| Real estate and infrastructure | 9.8% |
| India overall | 9.1% |
Note: Sector-level projections refer to 2027, as reported in the survey.
Domestic Demand and Investment Support Salary Growth
Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India, at Aon, said strong domestic consumption, sustained investment and export growth continue to support business confidence.
He added that these factors are allowing employers to invest in talent while maintaining cost discipline.
The survey suggests that companies are seeking to balance competitive compensation with financial prudence. Salary budgets remain an important consideration as organisations compete for specialised skills and seek to retain employees in critical roles.
Global Uncertainties Remain a Challenge
The projected salary increase comes against a backdrop of geopolitical uncertainties and risks to global trade.
International developments can influence business costs, supply chains, export demand and investment decisions. These factors may affect employers’ compensation strategies across industries.
Despite these risks, the survey points to continued support from India’s domestic consumption and investment activity.
What the Salary Outlook Means for Employees and Employers
For employees, projected salary growth offers an indication of the broader compensation environment in 2026-27. Actual increments, however, may differ according to industry, company performance, job role, skills, location and individual appraisal outcomes.
For employers, the outlook underscores the need to balance talent retention and recruitment with productivity and cost management.
Sectors such as NBFCs, energy, real estate and infrastructure are expected to remain important areas to watch as businesses plan their workforce budgets for 2027.
- Overall salary growth: India’s salaries are projected to rise by 9.1% in 2026-27.
- Leading sector: NBFCs are projected to record a 10.1% increase in 2027.
- Energy: Salary growth is projected at 9.9%.
- Real estate and infrastructure: Salary increases are projected at 9.8%.
- Key supporting factors: Domestic consumption, investment and export growth.
- Main risks: Geopolitical uncertainty and global trade pressures.
The survey’s projections indicate that salary growth in India is expected to remain relatively resilient, although actual pay increases will depend on individual employers’ performance, workforce requirements and business conditions.
(Economy India)
