Real estate and infrastructure companies are expected to offer the highest increments at 10.2%, followed closely by Non-Banking Financial Companies at 10.1%. Automotive and vehicle manufacturing as well as engineering design services are projected to see hikes of 9.9%, while engineering and manufacturing may offer 9.5%. Energy, life sciences and technology platform and products are all expected to hover around 9.4%.
In contrast, sectors such as banking, chemicals, e-commerce, funds and asset management, life insurance, and technology consulting and services are projected to see increases below 9%.
Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India, at Aon, said India is entering its next phase of growth on a stronger macro foundation. Domestic demand, moderating inflation and new trade agreements are supporting the medium-term outlook even as companies navigate geopolitical uncertainty. Stronger salary growth in real estate, NBFCs and manufacturing, he added, reflects employers’ intent to invest in critical talent while building sustainable compensation strategies.
Attrition cools as labour codes reshape pay
The survey also notes that overall attrition fell to 16.2% last year, down from 17.7% in 2024 and 18.7% in 2023, returning close to pre-pandemic levels. Aon attributes this to more targeted hiring, greater focus on employee engagement and career mobility, and improved workplace stability.
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With India’s new labour codes now notified, companies are reassessing how pay is structured. Amit Kumar Otwani, Associate Partner, Talent Solutions, India, at Aon, said the standardised definition of wages and expanded social security provisions are prompting employers to revisit compensation frameworks. Clear communication around these changes, he noted, will be critical to maintaining workforce trust as India’s salary outlook evolves.
