India Inc. set for 9.1% salary hikes in 2027: What the numbers reveal, and are projections too optimistic?
How much of a pay hike are you expecting in 2027? India Inc. is projecting a 9.1% salary increase, with some sectors likely to offer bigger raises. Here's what Aon's Annual Salary Increase and Turnover Survey for India 2026-27, released on October 14, reveals
The 33rd edition of the survey analysed data from more than 1,200 organisations across 45 industries.
The projected salary increase of 9.1% for 2027 is broadly stable compared with the actual 9% increase in 2026, reflecting continued resilience in compensation budgets despite geopolitical uncertainty and global trade risks, the report said.
However, salary increase projections vary by industry. For example, Non-banking financial companies are projected to lead salary growth in 2027 at 10.1%, followed by energy at 9.9% and real estate and infrastructure at 9.8%.
“Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline,” said Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon.
“Stable salary budgets are enabling a more targeted approach to pay. A modest rise in non-merit adjustments, particularly in manufacturing and technology, reflects greater focus on market alignment, scarce skills and critical talent."
But the ground reality seems 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.
Citing soaring server costs, rising AI expenses and global uncertainty, Vembu wrote on social media that these are really tough times for software jobs, and they are trying to avoid large-scale workforce reductions. “We will work hard to avoid mass lay-offs,” he writes.
His post has also sparked reactions on social media, with users speaking about salary freezes, job insecurity and concerns about the software industry's outlook.
Overall attrition increased to 18% in 2026, compared with 16.2% in 2025 and 17.1% in 2024. The increase suggests competition for talent remains strong despite broadly stable salary budgets.
Adoption of AI productivity tools rose from 46.1% in 2025 to 56%, with usage increasing across every job cluster measured. Around 60% of employers are prioritising upskilling of employees, while investment in agentic AI and demand for AI skills continue to grow.
Talent premiums for AI, machine learning and data science roles increased by approximately 10% from 2025.
“The rapid adoption of AI signals a shift from experimentation to enterprise-wide application,” Chaudhary said. He added that employers must translate this momentum into measurable productivity and growth.
The survey found that 65.4% of employers are already compliant with the Wage Code, while another 20.9% expect to be ready within six months. Meanwhile, 42.8% anticipate payroll cost increases of at least 1%.
“Progress on Wage Code readiness is encouraging, but compliance is only the first step,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon.
He said employers need to assess workforce and cost implications, align changes to cost to company with their rewards philosophy and communicate the transition clearly.
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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